Durant Motors Inc. was established in 1921 by former General Motors CEO William "Billy" Durant following his termination by the GM board of directors and the New York bankers who financed GM.

William Crapo Durant was a leading pioneer of the United States automobile industry and co-founder of General Motors and Chevrolet. He created a system in which a company held multiple marques – each seemingly independent, with different automobile lines – bound under a unified corporate holding company. Durant, along with Frederic L. Smith, co-founded General Motors, as well as Chevrolet with Louis Chevrolet. He also founded Frigidaire.