The McFarlan Carriage Company of Connersville, Indiana, played an important role in developing the region into an automobile manufacturing area. It manufactured carriages from the mid-1950s until 1909, when Harry McFarland created its first automobile. A year later, the company enjoyed its first racing success at the Indianapolis Labor Day races in 1910, when a pair of McFarlans finished in the top five. Along with racing prowess, the company became renowned for quality, luxurious, high-end automobiles produced in limited quantities, clothed with in-house coachwork. During the 1920s, the cost of a McFarlan ranged from the mid-$4,000 to low $9000s, among the highest in the industry.
In 1921, the company introduced the Twin-Valve Six powered by a 120-horsepower engine built by McFarlan and featuring 18 spark plugs and triple ignition.
In attempts to lower prices and increase sales, the company introduced a lower-priced Single-Valve model powered by a Wisconsin six-cylinder engine. It was less powerful but it was less expensive by a significant amount. The Single Valve Model occupied a very competitive segment of the industry, and the McFarlan did not fair well, with not many examples sold, prompting the company to discontinue the model during 1926.
Harry McFarlan had become very ill during the mid-1920s, and operating of the business fell to his long-time associate Burton Barrows. Under his guidance, the company made another attempt at successfully entering the low-priced market, this time using a Lycoming engined straight-eight. It sold slightly better than the Single Valve model, but not enough to rectify the company's eventual demise.
McFarlan was always a low-production manufacturer, with fewer than 200 examples being built for most years. Its best year was in 1922, with 235 examples sold. The 1920s witnessed the failing health of its management staff, the post-World War I recession, and new products being introduced by other manufacturers. McFarlan's efforts to move into new market segments had thinned its resources, and when the company did introduce new styling in 1928 (the first since 1921), it was met with devastation from which it could not recover. Both Barrows and McFarlan passed away in 1928. The factories and dealer network were acquired by Errett Lobban Cord, added to his growing portfolio of companies, and used for the creation and distribution of the Duesenberg Model J.
by Dan Vaughan