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We have a proud car culture in the United States, but surprisingly, not many people know much about this country’s automotive history. For this history lesson, we’re focusing on the automotive “industry” rather than the history of the automobile itself.
when it all started
In the 1890s, the American automotive industry began and, due to mass production and the large size of the domestic market, quickly developed into the world’s largest automotive industry (though that title would be taken from the US by Japan. 1980 from Japan in the 1990s and again by China in 2008).
The American automotive industry actually started out with hundreds of manufacturers, but by the late 1920s, three companies stood out from the rest:
- General Motors
- ford
- chrysler
the big three
These three companies continued to prosper even after the Great Depression and World War II. Henry Ford began manufacturing cars in 1896 and started the Ford-Motor Company in 1903. Ford used the first conveyor belt-based assembly line in 1913, improving mass production of its Model T. The assembly line cost came down significantly and the Model T sold. So well that it made Ford the largest automobile company in America.
General Motors was founded in 1908 by William Durant (formerly a carriage maker). In the first few years, GM acquired Buick, Oldsmobile, Oakland (later Pontiac), Cadillac, and several other car companies. Durant also wanted to acquire Ford but Henry Ford chose to keep his company independent. After becoming a bit “acquisition-happy”, Durant expanded the company and was forced out by a group of banks who took a controlling interest in the company. Durant then teamed up with Louis Chevrolet to establish Chevrolet in 1913, which became an instant success. Durant took back majority control in GM after acquiring enough stock, and GM acquired Chevrolet in 1917. Although this did not last long. Durant was ejected again in 1921. In the late 1920s, GM overtook Ford as the largest automaker.
Walter Chrysler, former president of Buick and a former GM executive, took control of the Maxwell Motor Company in 1920, reorganized it, and in 1925 reorganized it into the Chrysler Corporation. Chrysler acquired Dodge Brothers in 1927 and, in 1928, introduced DeSoto. And thanks to the Plymouth brand dealer network and manufacturing facilities that came with the Dodge acquisition. By the 1930s, Chrysler had overtaken Ford to become the second largest automaker.
1950 and onwards
By 1950, America produced about 75 percent of all the world’s automobiles. However, in the early 1970s, American auto companies (particularly the Big Three) were hit hard by increased competition from foreign auto manufacturers and high oil prices. In subsequent years, the companies made occasional comebacks but the crisis reached its peak in 2008, prompting Chrysler and General Motors to file for bankruptcy reorganization and to be bailed out by the federal government. While Ford was also affected by the crisis, he chose to power on his own and did not bail out. We really have a lot of respect for Ford as a result of this. He didn’t take the easy way out.
The year 2014 saw the largest (seasonally adjusted annual) sales in history with 16.98 million vehicles.
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