The name "Hudson" came from Joseph L. Hudson, a Detroit department store entrepreneur and founder of Hudson's department store, who provided the necessary capital and gave permission for the company to be named after him. A total of eight Detroit businessmen formed the company on February 20, 1909, to produce an automobile which would sell for less than US$1,000 (equivalent to approximately $26,656 in today's funds). One of the chief "car men" and organizer of the company was Roy D. Chapin, Sr., a young executive who had worked with Ransom E. Olds. (Chapin's son, Roy Jr., would later be president of Hudson-Nash descendant American Motors Corp. in the 1960s). The company quickly started production, with the first car driven out of a small factory in Detroit on July 3, 1909 at Mack Avenue and Beaufait Street, occupying the old Aerocar factory.

The Hudson Motor Car Company made Hudson and other brand automobiles in Detroit, Michigan, from 1909 to 1954. In 1954, Hudson merged with Nash-Kelvinator Corporation to form American Motors (AMC). The Hudson name was continued through the 1957 model year, after which it was discontinued.