In 1908, Hugh Diehl was awarded one of the first Ford franchises in the state of Washington. He set up shop on Prospect Street in what is now the ARCO Exhibit Hall of the Whatcom Museum of History and Art.

The dealership moved to the corner of Cornwall and Champion Streets in 1914. The dealership suffered a devastating fire in 1948 and was rebuilt in the same location.

Hugh's son Robert returned to the business after graduating from the University of Washington and was named President in 1951. A new building was constructed on James Street and occupied in 1970. The dealership continues to occupy the James Street location after several additions and alterations.

Hugh's grandson, Bob returned from U of W and the Army in 1964 to become the President in 1980.

Hugh's great grandson, Mike, after graduating form Oregon State University and serving as a Naval pilot, is now the fourth generation family member in the business.

Today, Diehl Ford is the third oldest Ford dealership in the world.