GM founder Billy Durant’s prediction that people would someday buy a half-million motor cars a year prompted a famous banker to say “If he has any sense, he’ll keep those notions to himself if he ever tries to borrow money”. Durant, on the other hand, thought he was playing it safe by bringing the manufacture of every kind of vehicle and automotive product within GM’s orbit.

In 1909, Durant brought in the Oakland Motor Car Company. Though the purchase made bankers nervous –its cash price was bigger than the price GM had put out for Buick and Olds combined- it paid off when Oakland production reached 4,500 the next year. Hill-climbing was a sport that attracted a lot of attention then, and one Oakland model, the Pontiac, later became so famous for its climbing ability that the division was renamed for it.

Another company Durant had his eye on was Cadillac. Led by a perfectionist who set a standard for quality for which Cadillacs are still famous, the company was the first car manufacturer to build cars without having to resort to hand work to fit parts together. After several attempts, Durant found a way to finance Cadillac’s $4.5 million asking price in 1909.

As car sales fell off in 1910 and 18 established auto makers went out of business, GM had to sell off some of its companies at a loss, and Durant was forced out. He promptly founded another company, with backing from business people anxious to leave the expiring wagon and buggy industry. A former Buick racing driver, Swiss-born Louis Chevrolet, was his designer. By 1916, Durant was able to trade Chevrolet for a majority share of GM stock, putting himself back in the driver’s seat at the company he founded.

By its 10^th anniversary, GM had changed from a holding company to an operating company, with all divisions (but Saturn) already in place. In the same year, GM also incorporated General Motors of Canada Limited.