The Aerocar is an American automobile that was built from 1906 until 1908 in Detroit, Michigan. Backed by Henry Ford's former partner, coal merchant Alexander Malcomson, the short-lived company offered an air-cooled four-cylinder luxury car which sold for $2,800. The factory was sold to Hudson Motor Car Company. History The Aerocar Motor Company was founded in late 1905 by entrepreneur Alexander Malcolmson, who was also the primary financial backer of the Ford Motor Company in 1903. The two had differing views on serving the marketplace with Malcomson focusing on profitability from more expensive cars in contrast to Henry Ford looking to develop cars for the low-priced market. The company's name refers to the car's use of an air-cooled engine. An order was placed with Reeves Pulley Company to deliver 500 four-cylinder, engines. A factory was built in Detroit at the corner of Mack Avenue and Beaufait Street. The Detroit News published an article on 3 December 1905, about Malcomson, the new Aerocar Company, and its plan to produce 500 touring cars during the year. This brought a response on 5 December 1905 from Ford's board of directors calling for Malcomson's resignation from the board. Production began in February 1906 for a high-end car to compete with the automobiles on the market at that time, including Ford's Model K, and Aerocar reserved spaces at the major 1906 auto shows. By April, the company reported selling one car per week and was planning to build three per week. News reports during December 1905 boasted that Aerocar was manufacturing four cars per week, mostly the runabout version. By April 1907, the company announced intentions of buying a large office building near Woodward in Detroit. High fixed costs and low demand for its cars were factors for the company to file for bankruptcy on August 6, 1907, and the process of liquidation during October and November of that year included the sale of 25 new Aerocars "at half of production cost." A lawsuit in 1909 by Reeves against Aerocar's failure to fulfill its 500 engine contract indicated that only 319 were taken. Moreover, the $325 price was high for an "unremarkable, 1905 technology engine." Malcolmson went back to the more lucrative coal business. The Aerocar factory at Mack Avenue and Beaufait Street was leased in April 1909 to the Hudson Motor Car Company. The new company experienced rapid growth of its Model 20. Demand