Alexander Young Malcomson was born on the 7th of June, 1865 in Dalry, North Ayrshire. He and his widowed father left Scotland when Alexander was 15 to emigrate to the USA, living with his uncle in Detroit.
The young Alexander started working in a grocery store shortly after arriving before eventually purchasing one for himself. He later switched to dealing in coal and bought out several competitors in the process: by 1902 he owned 6 coal yards and was accumulating wealth.
It was around this time when Henry Ford approached Malcomson to help bankroll a new automobile company: Ford & Malcomson. He raised $3,000 and the new company was born along with a new car: the Model A, which was to be sold for $750. Both Ford and Malcomson receieved 255 shares apiece (25.5% each) with the rest of the shares being divided between the other investors. On June 16th, 1903 the company was officially reincorporated as Ford Motor Co. and business began to boom.
In the first 6 months the company made $100,000 and by the end of the first year that profit had risen to $250,000. Malcomson, however, wasn’t satisfied and believed that the way to increase profits further was to focus on the luxury cars market. Ford wasn’t convinced but at Malcomson’s urging Ford Produced the Model B ($2,000) and Model K ($2,500): both luxurious touring cars that were popular with those who could afford them.
Malcomson founded his own luxury car company ‘Aerocar’ in 1905 which upset his fellow executives at Ford who felt that his new company would threaten Ford and the Model K. Following internal conflict it was decided to buy-out Malcomson for $175,000 in 1906. He used these profits to further fund Aerocar, building a factory and procuding the Model D and Model F. However the cars were not very popular and by 1908 Aerocar was broke.
Malcomson though was not finished. He dove back into his coal business and recovered his fortune. He died at his home in Michigan on the 1st of August, 1923 from hypostatic pneumonia after a long illness at the age of just 59. HIs net worth was an estimated $2,000,000 and he had played a huge role in the history of the automobile.