Durant was a millionaire at age 40. With the Durant-Dort Carriage Company running smoothly, Durant was becoming bored. By 1900, different brands of horseless carriages were being marketed in the U.S. To maintain the title of “Vehicle City,” the city of Flint needed the automobile business. James Whiting of Flint Wagon Works bought Buick to help the city and save the company from financial ruin. Yet, he needed a sharp young businessman to take command, and Durant was the one.

Durant wasn’t interested at first. He said that automobiles were noisy, dangerous contraptions that frightened people and horses. Still, he was willing to give it a shot. He took the Buick out alone, driving it on all kinds of roads for a month or two. He was so impressed that he took over the management of Buick in 1904. In 1908, Buick production surpassed Ford and Cadillac combined. Durant had made the transition from the largest carriage maker to the largest automobile manufacturer in a little more than three years.

One night in 1907, Durant received a phone call about a large automobile merger put together by financier J.P. Morgan. Weeks later, Durant held a meeting in his room at the original Pontchartrain Hotel, together with three other automotive leaders. They were Henry Ford, Ransom Olds of REO, and Ben Briscoe of Maxwell-Briscoe. When Ford announced that he wanted money, not stock, the talks fell apart. Everyone left the sinking ship except Durant because he knew there must be consolidation.

Durant had a plan B. He knew Oldsmobile was having a difficult time. He took a night train to Lansing, Michigan, roused the Olds officials from bed, and proposed creating a holding company called General Motors that would include Buick and Oldsmobile. They agreed, and General Motors was incorporated on 16 September 1908.

In fact, Durant almost purchased Ford in 1909. After getting GM in shape, Durant had Henry Ford agree to sell the company for $8 million. The loan committee of the bank, however, passed on this deal. If Durant had had the cash, Ford would have become a division of GM.