Carl Kiekhaefer had never planned to own anything related to outboard motors when he graduated as an engineer from college. His original plan was to create and manufacture magnetic separators for use within the dairy industry. He bought a declining Cedarburg outboard engine company with financial backing from his father with the intention of utilizing the premises to create his magnetic separators. When he bought the company he also got 300 outboard motors that were regarded as rejects as they had defects and wouldn't run.
As an engineer and needing money outboard motor sale Carl made a decision to examine the engines and see if they may be repaired and sold. After taking a look at them he put to work along with his small workforce and repaired these and contacted the first buyer who'd rejected them. The order had been with a mail order firm and they agreed to take the engines from Carl now they certainly were working and sell them. Carl had seen the outboards as a way to obtain some funds quickly into his business that has been called the Kiekhaefer Corporation at that time. But once the mail order firm called to order more of the engines because they proved popular and reliable and an additional company showed curiosity about the motors and they requested another engine an alternate-firing twin cylinder model to be designed and built for them he'd to revise his plans. Carl decided when this occurs in 1939 to enhance the style of the outboard motor and manufacture them as opposed to dairy machinery.
Carl labored on the style of their own brand of motors considering all the things that were wrong and unreliable with the outboards that were already available at that time. His plan was to introduce his first range of engines so they could be superior in power and reliability than anything that has been currently available. He developed a water pump rotor that withstood coping with silt and vegetation by making elements of it from rubber and a housing to guard the drive shaft and exhaust. The very first fuel system using a reed valve was also incorporated into the brand new engines and they certainly were willing to be introduced in 1940 whilst the Mercury range following the messenger of the Roman Gods. The New York boat show in 1940 was where he presented his outboard motors to the general public and dealers for the first time and took 16,000 orders for engines at that one show.
Just as the company started to actually well the Second World War stopped all production of outboards and Carl pushed to win a government contract to produce chainsaws for the army. The army had been trying to produce a far more portable version to replace the people currently used and Carl was sure he could beat their design. 8 weeks was all it took to really have a prototype designed and built and a functional test which chainsaw could cut through a 24inch log would determine if the army or Carl would have the contract. His machine beat the army one by 35 seconds taking only 17 seconds to cut the log and won the contract and this ensured the company's survival through the war. Soon after the war the production of outboards restarted and grew as boating started catching on as a pastime.