History of the automobile

History of the automobile

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Unlike many other major inventions, the original idea of the automobile cannot be attributed to a single individual. The idea certainly occurred long before it was first recorded in the Iliad, in which Homer (in Alexander Pope’s translation) states that Vulcan in a single day made 20 tricycles, which

Wondrous to tell instinct with spirit roll’ed From place to place, around the blest abodes, Self-moved, obedient to the beck of gods.

Leonardo da Vinci considered the idea of a self-propelled vehicle in the 15th century. In 1760 a Swiss clergyman, J.H. Genevois, suggested mounting small windmills on a cartlike vehicle, their power to be used to wind springs that would move the road wheel. Genevois’s idea probably derived from a windmill cart of about 1714. Two-masted wind carriages were running in the Netherlands in 1600, and a speed of 20 miles (30 km) per hour with a load of 28 passengers was claimed for at least one of them. The first recorded suggestion of wind use was probably Robert Valturio’s unrealized plan (1472) for a cart powered by windmills geared to the wheels.

Other inventors considered the possibilities of clockwork. Probably in 1748 a carriage propelled by a large clockwork engine was demonstrated in Paris by the versatile inventor Jacques de Vaucanson.

The air engine is thought to have originated with a 17th-century German physicist, Otto von Guericke. Guericke invented an air pump and was probably the first to make metal pistons, cylinders, and connecting rods, the basic components of the reciprocating engine. In the 17th century a Dutch inventor, Christiaan Huygens, produced an engine that worked by air pressure developed by explosion of a powder charge. Denis Papin of France built a model engine on the vacuum principle, using the condensation of steam to produce the vacuum. An air engine was patented in England in 1799, and a grid of compressor stations was proposed to service vehicles. An air-powered vehicle is said to have been produced in 1832.

Steam propulsion was proposed as early as the 16th century, and in 1678 Ferdinand Verbiest, a Belgian Jesuit missionary to China, made a model steam carriage based on a principle suggestive of the modern turbine.

In the 18th century a French scientist, Philippe Lebonpatented a coal-gas engine and made the first suggestion of electrical ignition. In Paris, Isaac de Rivas made a gas-powered vehicle in 1807; his engine used hydrogen gas as fuel, the valves and ignition were operated by hand, and the timing problem appears to have been difficult.

The age of steam

Most historians agree that Nicolas-Joseph Cugnot of France was the constructor of the first true automobile. Cugnot’s vehicle was a huge, heavy, steam-powered tricycle, and his model of 1769 was said to have run for 20 minutes at 2.25 miles (3.6 km) per hour while carrying four people and to have recuperated sufficient steam power to move again after standing for 20 minutes. Cugnot was an artillery officer, and the more or less steam-tight pistons of his engine were made possible by the invention of a drill that accurately machined cannon bores. A replica of Cugnot’s second vehicle, partially original, is preserved in the Conservatoire National des Arts et Métiers in Paris.

Cugnot’s successors were soon at work, notably in England, although the first post-Cugnot steam carriage appears to have been built in Amiens, France, in 1790. Steam buses were running in Paris about 1800. Oliver Evans of Philadelphia ran an amphibious steam dredge through the streets of that city in 1805. Less well known were Nathan Read of Salem, Massachusetts, and Apollos Kinsley of Hartford, Connecticut, both of whom ran steam vehicles during the period 1790–1800. In March 1863 the magazine Scientific American described tests of a vehicle that weighed only 650 pounds (about 300 kg) and achieved a speed of 20 miles (30 km) per hour. Another American, Frank Curtis of Newburyport, Massachusetts, is remembered for building a personal steam carriage to the order of a Boston man who failed to meet the payment schedule, whereupon Curtis made the first recorded repossession of a motor vehicle.

English inventors were active, and by the 1830s the manufacture and use of steam road carriages was flourishingJames Watt’s foreman, William Murdock, ran a model steam carriage on the roads of Cornwall in 1784, and Robert Fourness showed a working three-cylinder tractor in 1788. Watt was opposed to the use of steam engines for such purposes; his low-pressure steam engine would have been too bulky for road use in any case, and all the British efforts in steam derived from the earlier researches of Thomas Savery and Thomas Newcomen.

Richard Trevithick developed Murdock’s ideas, and at least one of his carriages, with driving wheels 10 feet (3 metres) in diameter, ran in London. Sir Goldsworthy Gurney, the first commercially successful steam carriage builder, based his design upon an unusually efficient boiler. He was not, however, convinced that smooth wheels could grip a roadway, and so he arranged propulsion on his first vehicle by iron legs digging into the road surface. His second vehicle weighed only 3,000 pounds (1,360 kg) and was said to be capable of carrying six persons. He made trips as long as 84 miles (135 km) in a running time of 9 hours and 30 minutes and once recorded a speed of 17 miles (27 km) per hour.

Gurney equipment was used on the Gloucester-Cheltenham service of four daily round trips; under favourable conditions the equipment could complete the 9 miles (15 km) in 45 minutes. Between February 27 and June 22, 1831, steam coaches ran 4,000 miles (6,400 km) on this route, carrying some 3,000 passengers. The equipment was noisy, smoky, destructive of roadways, and admittedly dangerous; hostility arose, and it was common for drivers to find the way blocked with heaps of stones or felled trees. Nevertheless, numerous passengers had been carried by steam carriage before the railways had accepted their first paying passenger.

The most successful era of the steam coaches in Britain was the 1830s. Ambitious routes were run, including one from London to Cambridge. But by 1840 it was clear that the steam carriages had little future. They had much to contend with, including the anti-machinery attitude of the public and the enmity of the horse-coach interests, which resulted in such penalties as a charge of £5 for passing a tollgate that cost a horse coach only three pence. The crushing blow was the Locomotives on Highways Act of 1865, which reduced permissible speeds on public roads to 2 miles (3 km) per hour within cities and 4 miles (6 km) per hour in rural areas. This legislation was known as the Red Flag Act because of its requirement that every steam carriage mount a crew of three, one to precede it carrying a red flag of warning. The act was amended in 1878, but it was not repealed until 1896, by which time its provisions had effectively stifled the development of road transport in the British Isles.

The decline of the steam carriage did not prevent continued effort in the field, and much attention was given to the steam tractor for use as a prime mover. Beginning about 1868, Britain was the scene of a vogue for light steam-powered personal carriages; if the popularity of these vehicles had not been legally hindered, it would certainly have resulted in widespread enthusiasm for motoring in the 1860s rather than in the 1890s. Some of the steamers could carry as few as two people and were capable of speeds of 20 miles (32 km) per hour. The public climate remained unfriendly, however.

Light steam cars were being built in the United States, France, Germany, and Denmark during the same period, and it is possible to argue that the line from Cugnot’s lumbering vehicle runs unbroken to the 20th-century steam automobiles made as late as 1926. The grip of the steam automobile on the American imagination has been strong ever since the era of the Stanley brothers—one of whose “steamers” took the world speed record at 127.66 miles (205.45 km) per hour in 1906. The car designed by them and sold as the Locomobile became the first commercially successful American-made automobile (about 1,000 were built in 1900). It is estimated that in the early 21st century there were still some 600 steam cars in the United States, most of them in running order.

Early electric automobiles

At the beginning of the 20th century, 40 percent of American automobiles were powered by steam, 38 percent by electricity, and 22 percent by gasoline. In the face of the gasoline car’s unreliability, noise, and vibration and the steamer’s complications and thirst, the electric offered attractive selling points: notably, instant self-start, silent operation, and minimal maintenance. The first automobile to exceed 100 km (60 miles) per hour was an electric (Camille Jenatzy’s La Jamais Contente, 1899). An electric, also Jenatzy’s, had been the easy winner in 1898 of a French hill-climb contest to assay the three forms of power.

Invention of the storage battery by Gaston Planté of France in 1859–60 and its improvement by Camille Faure in 1881 made the electric vehicle possible, and what was probably the first, a tricycle, ran in Paris in 1881. It was followed by other three-wheelers in London (1882) and Boston (1888). The first American battery-powered automobile, built in Des Moines, Iowa, c. 1890, by William Morrison, could maintain a speed of 14 miles (23 km) per hour.

The popularity of the electric car was hampered by a lack of battery-charging infrastructure. Prior to 1910, few private homes, even in cities, were wired with electricity, and community charging stations and battery exchange schemes failed to catch on. By 1912 the problem had been overcome, and the electric had its heyday. Some 20 companies were in the trade and 33,842 electric cars were registered in the United States, the country in which they had maximum acceptance. It was another application of battery power, the electric self-starter, that did as much as anything to doom the electric car by eliminating the dreaded hand crank and making the internal-combustion engine car amenable to operation by women. Further, the electric had never really been suited to other than limited urban use because of its low speed (15–20 miles, or 24–32 km, per hour), short range (30–40 miles, or about 50–65 km), and lengthy time required for recharging. The heyday of the electric car in America had ended by 1920, although a few manufacturers offered them on special order until World War II. The war, however, gave rise to experiments with small electric cars in fuel-starved France and resulted in extensive use of electric vehicles for milk delivery in Britain, which continued in urban areas there for the rest of the century.

Development of the gasoline car

Most authorities are inclined to honour Karl Benz and Gottlieb Daimler of Germany as the most important pioneer contributors to the gasoline-engine automobile. Benz ran his first car in 1885, Daimler in 1886. Although there is no reason to believe that Benz had ever seen a motor vehicle before he made his own, he and Daimler had been preceded by Étienne Lenoir in France and Siegfried Marcus in Austria, in 1862 and 1864–65, respectively, but neither Lenoir nor Marcus had persisted. Benz and Daimler did persist—indeed, to such purpose that their successor firm of Daimler AG can trace its origins as far back as 1885. Oddly, Benz and Daimler never met.

The four-stroke principle upon which most modern automobile engines work was discovered by a French engineer, Alphonse Beau de Rochas, in 1862, a year before Lenoir ran his car from Paris to Joinville-le-Pont. The four-stroke cycle is often called the Otto cycle, after the German Nikolaus August Otto, who designed an engine on that principle in 1876. De Rochas held prior patents, however, and litigation in the French courts upheld him. Lenoir’s engine omitted the compression stroke of the Otto cycle; fuel was drawn into the cylinder on the intake stroke and fired by a spark halfway on the next reciprocal stroke.

The idea for Marcus’s 1864–65 car apparently came to him by chance while he was considering the production of illumination by igniting a mixture of gasoline and air with a stream of sparks. The reaction was so violent that it occurred to him to use it as a power source. His first vehicle was a handcart marrying a two-cycle engine geared to the rear wheels without any intervening clutch. It was started by having a strong man lift the rear end while the wheels were spun, after which it ran for a distance of about 180 metres (about 200 yards). Marcus’s second model, the 1888–89 car, was sturdy and sufficiently well-preserved to make a demonstration run in the streets of Vienna in 1950, and again in 1987, at a rate of almost 5 km (3 miles) per hour. In 1898 the Austrian Automobile Club arranged an exhibition of motorcars, and Marcus was a guest of honour. Ironically, he denied interest in the idea of the automobile, calling it “a senseless waste of time and effort.”

Germany

Karl Benz

Karl Benz was completely dedicated to the proposition that the internal-combustion engine would supersede the horse and revolutionize the world’s transportation. He persisted in his efforts to build a gasoline-fueled vehicle in the face of many obstacles, including lack of money to the point of poverty and the bitter objections of his associates, who considered him unbalanced on the subject.

Benz ran his first car, a three-wheeler powered by a two-cycle, one-cylinder engine, on a happy and triumphant day early in 1885. He circled a cinder track beside his small factory, his workmen running beside the car, his wife running too, clapping her hands; the little machine made four circuits of the track, stalling only twice before a broken chain stopped it. Even Max Rose, Benz’s skeptical partner, whose money had made the car possible, conceded that he was mildly impressed; but, like Siegfried Marcus, he remained convinced to the end of his association with Benz that there was no future in the horseless carriage.

Benz made his first sale to a Parisian named Émile Roger in 1888. Gradually, the soundness of his design and the quality and care that went into the material and the construction of his cars bore weight, and they sold well. That year he was employing some 50 workmen to build the tricycle car; in 1893 he began to make a four-wheeler.

In his way, Benz was almost as dogmatic and reactionary as Marcus had been; he objected to redesign of his original cars, and some authorities believe that he was never really convinced that his original concepts had been improved upon.

Gottlieb Daimler

Gunsmithing was Gottlieb Daimler’s first vocation, and he showed marked talent, but he abandoned the trade to go to engineering school, studying in Germany, England, and France. In Germany he worked for various engineering and machining concerns, including the Karlsruhe Maschinenbaugesellschaft, a firm that much earlier had employed Benz.

In 1872 Daimler became technical director of Otto’s firm, then building stationary gasoline engines. During the next decade, important work was done on the four-stroke engine. Daimler brought in several brilliant researchers, among them Wilhelm Maybach, but in 1882 both Daimler and Maybach resigned because of Daimler’s conviction that Otto did not understand the potential of the internal-combustion engine. They set up a shop in Bad Cannstatt and built an air-cooled, one-cylinder engine. The first high-speed internal-combustion engine, it was designed to run at 900 revolutions per minute (rpm). For comparison, Benz’s first tricycle engine had operated at only 250 rpm. Daimler and Maybach built a second engine and mounted it on a wooden bicycle fitted with an outrigger, which first ran on November 10, 1885. The next year the first Daimler four-wheeled road vehicle was made: a carriage modified to be driven by a one-cylinder engine. Daimler appears to have believed that the first phase of the automobile era would be a mass conversion of carriages to engine drive; Benz apparently thought of the motorcar as a separate device. Daimler’s licensees in France were René Panhard and Émile Levassor. In 1889 they entered the field independently, and the Panhard-Levassor designs of 1891–94 are of primary importance. They were true automobiles, not carriages modified for self-propulsion.

Daimler’s 1889 car was a departure from previous practice. It was based on a framework of light tubing, it had the engine in the rear, its wheels were driven by a belt, and it was steered by a tiller. Remarkably, it had four speeds. This car had obvious commercial value, and in the following year the Daimler Motoren-Gesellschaft was founded. The British Daimler automobile was started as a manufactory licensed by the German company but later became quite independent of it. (To distinguish machines made by the two firms in the early years, the German cars are usually referred to as Cannstatt-Daimlers.) The Daimler and Benz firms were merged in 1926, and products thereafter have been sold under the name Mercedes-Benz. This practice continues, despite the 1998 merger with the American firm Chrysler Corporation to form DaimlerChrysler AG (from 2007, Daimler AG).

(Read Lee Iacocca’s Britannica entry on Chrysler.)

Other European developments

In France the giants were De Dion-BoutonPeugeot SA, and Renault (the last two are still in existence). The Italians were later in the field: the Stefanini-Martina of 1896 is thought of as the foundation of the industry in Italy, and Isotta-Fraschini was founded about 1898. Giovanni Agnelli founded Fiat SpA in 1899, saw it grow into one of the weightiest industrial complexes in the world, and maintained personal control until his death in 1945. Fabricators of lesser puissance but great repute were Lancia, Alfa Romeo SpAMaserati, and Ferrari (all now part of Fiat; see Enzo Ferrari), for years the standard against which other Grand Prix and Gran Turismo motorcars were judged.

The smaller European countries produced makes that were to remain less well-known: the Belgian Minerva, Métallurgique, and Excelsior; the Swiss Martini; the Austrian Austro-Daimler, Steyr, and Gräf und Stift; and the Czechoslovakian Skoda and Tatra, the latter technically interesting for its big rear-mounted V-8 engine. Spain had the Elizalde, and the classic Hispano-Suiza by the great Swiss designer Marc Birkigt was Spanish-financed. The oldest automobile still in running order at the beginning of the 21st century was thought to be an 1888 Hammel, made in Denmark.

The United States

The Daimler and Benz claims to the invention of the automobile were attacked in 1895 when U.S. patent 549,160 was granted to George B. Selden as inventor of the automobile. Selden had filed his application on May 8, 1879, although he had not at that time built an automobile. He was successful in an effort to keep the patent pending for 16 years.

 

Most authorities credit Charles E. Duryea and J. Frank Duryea with creating the first successful American gasoline-powered automobile, in 1892–93. The concept of the car apparently originated with Charles, and the machine was built by Frank. The Duryea consisted of a one-cylinder gasoline engine, with electrical ignition, installed in a secondhand carriage. It first ran on September 21, 1893. Driving a later model, J. Frank Duryea won the first automobile race in America in which more than two cars competed, the Chicago Times-Herald Race from Chicago to Evanston, Illinois, and return, in November 1895; the distance was 54.36 miles (87.48 km). The Duryea Motor Wagon Company built 13 cars in 1896, and variations on cars built by the brothers, who soon separated, remained on the market until 1917.

The Duryea was certainly not the first American-built road vehicle. A number of steam carriages had been built after Oliver Evans’s first example (see above The age of steam). Nor was the Duryea the first American internal-combustion automobile. Sephaniah Reese, a machinist in Plymouth, Pennsylvania, built a graceful gasoline-powered tricycle believed by historians to have been completed in 1887. Henry Nadig, another Pennsylvania inventor, completed a vehicle and tested it in 1891, the same year as John William Lambert of Ohio City, Ohio, and Charles Black of Indianapolis, Indiana. William T. Harris of Baltimore and Gottfried Schloemer of Milwaukee, Wisconsin, built successful cars in 1892. The Reese, Nadig, Black, and Schloemer cars still exist. Elwood Haynes followed the Duryea brothers with a gasoline car demonstrated in Kokomo, Indiana, on July 4, 1894. Charles Brady King built a car in Detroit, the first of the millions to issue from the city, that first ran on March 6, 1896.

Ransom Eli Olds, whose name is familiar from the long-lived Oldsmobile, was also active in gasoline-engine research in the 1890s, after initially being interested in steam; so were Alexander Winton and James Ward Packard. By 1898 more than 100 companies had been organized with the intent of automobile manufacture.

The three-horsepower curved-dash Oldsmobile surpassed the steam Locomobile as America’s best-selling car in 1902, when 2,750 of them were sold. The company’s prosperity was noted by others, and, from 1904 to 1908, 241 automobile-manufacturing firms went into business in the United States. One of these was the Ford Motor Company, which was organized as a corporation in June 1903 and sold its first car the following month; the company produced 1,700 cars during its first full year of business.

Ford and the automotive revolution

Henry Ford produced eight versions of cars before the Model T of 1908, with which his name became synonymous; these were the models A, B, C, F, K, N, R, and S. They were not remarkable automobiles, but public response to the less expensive ones (the firm made some fairly costly cars at first) indicated the soundness of Ford’s idea—to turn the automobile from a luxury and a plaything into a necessity by making it cheap, versatile, and easy to maintain.

By the mid-1920s the American automobile had won the revolution Ford had begun. The country was on wheels, and the manufacture and sale of automobiles had become an important component in the American economy. The closed car was no longer exclusively a rich man’s possession. In 1920 most cars had been open models, the occupants protected from the weather by canvas-and-isinglass side curtains. The Essex coach, a no-frills two-door sedan introduced in 1922 by the Hudson Motor Car Company, reduced the cost of sheltered motoring to that of a touring car. Ten years later, Detroit manufacturers were producing closed models almost exclusively.

The 1920s saw the emergence of the great European producers—Austin, Morris, and Singer in England, Fiat in Italy, and Citroën in France. Universal motor transportation was a long way off, but the concept of the small car that found expression in the Austin Seven and the Fiat Topolino, two of the descendants of Ettore Bugatti’s tiny Bébé Peugeot of 1911, was to have a profound effect.

By the middle of the decade, the American industry had become international. Ford had been assembling Model Ts in Britain since 1911, and General Motors Corporation bought the British Vauxhall and German Opel companies. Chrysler and Hudson, too, began assembly in Europe and other parts of the globe. The American car had established a good export trade after World War I, by which time it was recognized as robust, reliable, and cheap—so much so that several countries adopted taxation and duties against it. By the beginning of the 1930s, these policies disadvantaged the large car in Europe such that a new genre of small cars, little larger than the Austin Seven, was created for that market. The standard Ford was no longer a world car.

A significant stream of technological advancements characterized the 1920s and ’30s. In addition to four-wheel brakes, almost exclusively hydraulic by 1936, and independent front suspensions, heaters and radios became popular accessories, and transmissions with synchronized gears made driving easier. As the six-cylinder engine had largely replaced the four by 1916, so the “straight eight” was adopted by most manufacturers by 1930. An important exception was Ford’s famous V-8 of 1932, notable for its single casting and lively performance.

The age of the classic cars

The decade 1925–35 was notable not only for the appearance of many new small automobiles but also for the building of many ultra-large ones. The years from 1925 to 1948 are cited by collectors of automobiles as the “classic years,” a period that saw the rise of the luxurious fast motorcar to a peak it seems unlikely to reach again. The first name in this field was Rolls-Royce Ltd., founded in 1906. Most Rolls-Royce chassis are designed for limousine and large sedan bodies, but the firm once made a comparatively light car (called the Twenty), and it has throughout its history produced fast models in addition to its regular line—e.g., after World War II, the Continental, built under the Bentley Motors Ltd. label.

Other motorcars of this type included the Hispano-Suiza of Spain and France; the Bugatti, Delage, Delahaye, Hotchkiss, Talbot (Darracq), and Voisin of France; the DuesenbergCadillacPackard, and Pierce-Arrow of the United States; the Horch, Maybach, and Mercedes-Benz of Germany; the Belgian Minerva; and the Italian Isotta-Fraschini. These were costly machines, priced roughly from $7,500 to $40,000, fast (145 to 210 km, or 90 to 130 miles, per hour), as comfortable as the state of the art would allow, and limited in luxury only by the purse of the purchaser. The great custom coach builders of England who furnished bodies for Rolls-Royce machines, unruffled by the whims of their clients, were prepared to satisfy any request, whether for upholstery in matched ostrich hide with ivory buttons or for a dashboard in rosewood.

The most expensive standard automobile of which there exist convincing records was the Type 41 Bugatti, produced in the 1920s by Ettore Bugatti, an Italian of extraordinary gifts who built cars in France, most of them racing and sports types, from 1909 to 1939. The Type 41 Bugatti, also called La Royale, was cataloged at a chassis price of 500,000 francs, then about $20,000. Only six of the cars were built.

The stock market collapse of 1929 signaled the twilight of the really luxurious motorcar. After World War II even Rolls-Royce abandoned its policy of producing a standard chassis for custom-made bodies and offered a standard sedan that could be bought straight off the showroom floor.

With the demise of the luxury car market came also a great downsizing of the industry. The Great Depression in America, and its fallout in other countries, resulted in the failure of most independent manufacturers and caused others to market lower-priced cars. As a result, the auto market in the United States became dominated by the “Big Three”—General Motors, Ford, and Chrysler—and similar effects were felt overseas.

European postwar designs

When automobile manufacture was resumed in 1946 after a lull during World War II, the effect of Italian ideas on the world’s automobile body designers was profound. Pininfarina of Turin was the best-known of the coach builders who established the characteristic Italian approach: grace, lightness in line and substance, and minimal use of decoration. Designs clearly derivative of those of Italian origin appeared everywhere, and manufacturers in France, the United Kingdom, and the United States contracted for the services of Italian carrozzerie (body factories).

The worldwide appeal of the American car had faded. Not only were the cars too large and expensive to operate in lands recovering from war, but those countries were in dire need of cash from export trade. For the first time since early in the century, the United States began importing cars in significant numbers. A factor in this was the return from duty in Europe of servicemen who had previously never seen the sheer variety of automobiles the world afforded. The sports car, designed for pleasure, was particularly new to young Americans. The characteristics of automobiles such as the British two-seater MG, plus their availability at a time of short domestic supply, made them attractive, and the importation of European-made models into the United States increased rapidly. At first, most of these were British, but by the mid-1950s the Volkswagen, originally envisioned by Adolf Hitler as a “people’s car” for Germany, had a firm grip on the American market, accounting for half the import sales.

In engineering, much American experimentation followed research begun by the European automotive industry: development of gas turbine engines, fuel-injection systems, disc brakes, rear-engine and later, conversely, front-wheel-drive models. The turbines did not fulfill their promise, but the other advances eventually became common practice.

Front-wheel-drive had largely been abandoned after the 1930s, although the French had great success with the “Traction Avant” Citroën. Swedish aircraft manufacturer Saab AB used it too, for its entry into the automobile market in 1950. It was the British Mini, designed by Sir Alec Issigonis and sold under both Austin and Morris names, that pioneered the front-drive concept as it is now known. Issigonis was attempting to gain the greatest space efficiency in a small car. In order to achieve this he pushed the wheels out to the far corners of the envelope, and to get maximum passenger room inside he turned the engine sideways and located it directly atop the transmission. The Mini was spectacularly successful, although it was a dozen years before the concept was taken up by others, such as the Japanese with the Honda Civic.

V-8s and chrome in America

In the United Statesautomobile racing in the years around 1910 was drawing the biggest crowds in American sports history. It began to regain popularity following World War II. By the mid-1950s motor racing had again become a high-ranking American spectator sport, and by 1969 estimated attendance was 41,300,000, higher than that for baseball or football. Only horse racing showed a total higher than auto racing. In the 1950s and ’60s American manufacturers returned to testing new engineering designs at automobile races (a standard practice in 1900–30). Ford was most successful, winning the Le Mans 24-hour Grand Prix race—the first American-built car to do so—in 1966 and 1967 and producing, in a remarkably short time, a racing engine that dominated major American tracks.

The public now craved performance, and the V-8 engine, increasingly with high compression and overhead valves, became near-universal in the United States. More and more cars were delivered with automatic transmissions, first used by Oldsmobile in 1940, which made it unnecessary for the driver to shift gears. Air conditioning, an unsatisfactory experiment before World War II, was again offered, and the introduction of a compact system by Pontiac in 1954, capable of installation completely in the engine compartment, resulted in greatly increasing popularity.

From the 1930s onward, cars had become more streamlined. Fenders became part of the body, as opposed to appendages on it. To provide contrast on otherwise undistinguished shapes, designers began applying bright, chromium-plated trim and adopted multi-toned colour schemes. By 1956 most cars could be ordered in three different hues, and three years later the Cadillac, which in 1948 had pioneered fenders fashioned after the tail fins of airplanes, boasted taillights nearly four feet off the ground.

American compact cars

While the size of the standard American motorcar increased steadily from the late 1940s to the early 1960s, a small segment of the population was demonstrating a preference for smaller cars and for comparatively uncluttered styling. The success of the Volkswagen and other small cars, bolstered by the 1958 recession, eventually led the major American producers simultaneously to undertake the production of automobiles generically termed “compact.” With wheelbases of 106 to 110 inches (269 to 279 cm), the Ford Falcon, Chrysler Valiant, and Chevrolet Corvair were smaller than most American cars but still larger than the average European models. By the mid-1960s a demand for more highly individualized luxury models of compact size had brought lines of “intermediate” cars from all manufacturers. The Ford Mustang, basically a Falcon modified into a sporty coupe, set the pace for a new genre of what came to be known as “pony cars.” A similar exercise in “market engineering” at General Motors created the “muscle car,” an intermediate-size car with a large engine from the top of the line, as typified by the Pontiac GTO.

Japanese cars

Although Datsun (Nissan Motor Company, Ltd.) had been making cars since 1914, the majority of automobile production in Japan before 1936 came from a subsidiary of Ford in Yokohama. As a result of laws requiring local ownership, however, Datsun and Toyota Motor Corporation, the latter originally a textile machinery company, dominated from that time. Post-World War II recovery was slow, a mere 13,000 cars produced in 1955, but both firms began exporting to the United States in 1958. The first such car to sell in any quantity was the Toyota Corona, introduced in 1967. While $100 more expensive than the Volkswagen Beetle, it was slightly larger, better-appointed, and offered an optional automatic transmission.

The 1970s were stagnant years for American automobile design, as engineering was directed toward meeting safety and environmental regulations resulting from laws enacted by Congress beginning in 1966. Engines were modified to emit fewer pollutants, at first sacrificing efficiency, although fuel shortages and price increases during the decade made this a counterproductive approach. Safety advances included redundant braking systems, seat and shoulder belts, and strengthened bumpers. The availability of fresh designs with high perceived quality from the Japanese manufacturers, however, severely tilted traditional buying patterns. Honda, formerly a motorcycle manufacturer, offered an advanced compound vortex controlled combustion (CVCC) chamber, which easily met American emissions standards at a time when American manufacturers were arguing that it was impossible. Honda’s Accord model, introduced in 1976, offered refinement and economy superior to comparable American models, albeit at a slightly higher price. The Accord was an immediate hit and resulted in construction of a Honda manufacturing plant in Ohio, the first of what would be many “transplant” operations. In 1989 the Accord became the best-selling passenger car model in the United States, a position that it held in many subsequent years.

From station wagons to vans and sport utility vehicles

Until 1948 the station wagon had been a utility vehicle, with a wooden body and little in the way of creature comforts. In 1949 Chrysler introduced an all-steel wagon in its entry-level Plymouth line. Within three years all manufacturers were offering them, and a genre of utilitarian yet stylish family transportation vehicles was born.

By the mid-1980s the station wagon became largely extinct as the front-drive minivan rose in popularity. Essentially Issigonis’s Mini packaging applied to a larger box, the minivan featured a transverse power package with the rest of the vehicle devoted to passengers and cargo. The first example was the Dodge Caravan, which was quickly imitated by others and taken up overseas, where it was known as a multipurpose vehicle, or MPV. General Motors introduced a wholly new range of transverse-engine front-drive sedans in 1980, paving the way for this to become the dominant automotive architecture within a decade. These were generally smaller and lighter than their predecessors and were powered by smaller engines. The V-6 engine soon replaced the V-8 as the most popular choice.

 

The 1990s exhibited another change in customer preferences, as the medium-sized four-wheel-drive vehicle, a descendant of the World War II Jeep, became immensely popular. Generically known as sport-utility vehicles (SUVs), the type eventually reached luxury nameplates like Cadillac and Porsche. Derided by some as a frivolous fashion statement and unwise use of resources, the SUV craze was aided by stable fuel prices in the mid-1980s. At the beginning of the 21st century, most manufacturers were introducing smaller, more carlike “crossovers,” a trend that intensified through the first decade of that century as the rising cost of gasoline dampened enthusiasm for full-size SUVs.

Alternative-fuel vehicles

Diesel

After World War II the diesel engine, particularly for light trucks and taxis, became popular in Europe because of its superior fuel economy and various tax incentives. During the 1970s General Motors converted some gasoline passenger-car engines to the more economical compression-ignition diesel operation, and Mercedes-Benz, Volkswagen, and Peugeot marketed diesel lines in America that derived from their European models. The ebbing of fuel shortages and the easing of gasoline prices, combined with various drawbacks to diesel engines (noise, poor cold-weather starting, limited fuel and service in some communities), reduced American demand by the early 1980s. Europe, which had not embraced diesels for private passenger cars, reversed course with the development of environmentally friendly common rail direct-injection diesel engines in the late 1990s. By 2005 diesel cars represented roughly half of all European passenger car sales.

Electric

The first of the fuel crises, in 1973–74, rekindled interest in electric vehicles in America. Numerous experimenters and entrepreneurs began work on battery electric cars, the most successful being the CitiCar built by a Florida company, Sebring Vanguard, Inc. The CitiCar had a plastic, wedge-shaped, two-seater body over a welded aluminum chassis. Lead-acid batteries supplied power to a 3.5-horsepower General Electric motor. With about 2,600 built between 1974 and 1976 (and another 2,000 of its successor, the ComutaCar, built between 1978 and 1981), the CitiCar was the most prolific of the late-20th-century electrics. Ultimately, the falling price of oil put an end to electric car sales.

Subsequent alternative propulsion programs were driven by environmental concerns. In 1990 the California Air Resources Board mandated that within eight years all auto manufacturers were to ensure that 2 percent of their sales in the state be “zero emission” vehicles. For all practical purposes this meant battery electrics. General Motors took this edict most seriously, beginning work on an aluminum backbone frame, composite plastic body, and low-rolling-resistance tires. Introduced in 1996 as the General Motors EV1, it was offered on lease through Saturn dealers in Arizona and California. Only 800 were contracted for, and production halted in 2000, with 100 remaining in service through 2005. In 1998–99 General Motors and Ford also offered battery electric pickup trucks, most of which were placed with government fleets. The shortcoming of all these battery electrics was their limited range—less than 100 miles with lead-acid batteries. More capable nickel–metal hydride cells were inordinately expensive. (See also battery.) The faltering efforts resulted in relaxation of the California mandate.

Electric-gasoline hybrids

In 1997 Toyota introduced its four-passenger Prius hybrid to the Japanese market. Combining a small gasoline engine and an electric motor through a sophisticated control system, the Prius uses gasoline power only when necessary to supplement electric propulsion or to recharge its batteries. (That same year in Europe, the hybrid Audi Duo was introduced, but its poor sales led European manufacturers to focus on diesel designs.) Honda was the first manufacturer to offer a hybrid in the American market, the two-passenger Insight in December 1999. In order to establish hybrid technology in the American marketplace, Toyota initially offered substantial discounts on the Prius when it introduced it to the United States in 2000; the U.S. and some state governments also offered tax incentives and other perquisites (such as unlimited use of commuter lanes and exemption from paying parking meters) to encourage production and sales of alternative-fuel vehicles. Although the Prius offered only a relatively modest increase in fuel economy, the removal of any need to plug the batteries in for recharging overcame the chief drawback to pure electric vehicles. The Prius was an immediate hit with trend-conscious Californians, with many celebrities choosing to drive hybrids instead of luxury cars, and prospective buyers often had to wait months for delivery. In 2004 the Ford Escape Hybrid (SUV) became the first American hybrid, beating two General Motors trucks, the Chevrolet Silverado and the GMC Sierra, to market by one year. The first luxury hybrid vehicle, the Lexus RX 400h, was released in 2005. In 2010 General Motors introduced the Chevrolet Volt, a car that could drive up to about 35 miles on electric batteries and would then drive using a gasoline engine after the battery was exhausted. Beginning in 2003, Tesla had some success with all-electric cars, however.

Ethanol and fuel cells

In 1999 Brazil mandated that by 2003 all new cars sold in the country had to be FlexFuel vehicles (FFVs)—vehicles certified to run on gasoline containing up to 85 percent ethanol (ethyl alcohol), marketed as E85. This initiative led numerous American, European, and Japanese manufacturers to certify some of their models as E85-compliant, which is indicated by the eighth character in the vehicle identification number, or VIN.

General Motors, Ford, and Chrysler primarily have concentrated on fuel cell development, assisted by U.S. government grants. However, usable technology for the general public is still years away.

Ken W. PurdyChristopher G. Foster

internal-combustion engine

internal-combustion engine, any of a group of devices in which the reactants of combustion (oxidizer and fuel) and the products of combustion serve as the working fluids of the engine. Such an engine gains its energy from heat released during the combustion of the nonreacted working fluids, the oxidizer-fuel mixture. This process occurs within the engine and is part of the thermodynamic cycle of the device. Useful work generated by an internal-combustion (IC) engine results from the hot gaseous products of combustion acting on moving surfaces of the engine, such as the face of a piston, a turbine blade, or a nozzle.

Internal-combustion engines are the most broadly applied and widely used power-generating devices currently in existence. Examples include gasoline enginesdiesel enginesgas-turbine engines, and rocket-propulsion systems.

Internal-combustion engines are divided into two groups: continuous-combustion engines and intermittent-combustion engines. The continuous-combustion engine is characterized by a steady flow of fuel and oxidizer into the engine. A stable flame is maintained within the engine (e.g., jet engine). The intermittent-combustion engine is characterized by periodic ignition of air and fuel and is commonly referred to as a reciprocating engine. Discrete volumes of air and fuel are processed in a cyclic manner. Gasoline piston engines and diesel engines are examples of this second group.

ball bearing. Disassembled ball bearing. rotational friction Automobile Industry, Engineering, Industry, Machine Part, Metal Industry, Sphere, Steel, Wheel
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Internal-combustion engines can be delineated in terms of a series of thermodynamic events. In the continuous-combustion engine, the thermodynamic events occur simultaneously as the oxidizer and fuel and the products of combustion flow steadily through the engine. In the intermittent-combustion engine, by contrast, the events occur in succession and are repeated for each full cycle.

With the exception of rockets (both solid rocket motors and liquid-propellant rocket engines), internal-combustion engines ingest air, then either compress the air and introduce fuel into the air or introduce fuel and compress the air-fuel mixture. Then, common to all internal-combustion engines, the air-fuel mixture is burned, work is extracted from the expansion of the hot gaseous products of combustion, and ultimately the products of combustion are released through the exhaust system. Their operation can be contrasted with that of external-combustion engines (e.g., steam engines), in which the working fluid does not chemically react and energy gain is achieved solely through heat transfer to the working fluid by way of a heat exchanger.

The most common internal-combustion engine is the four-stroke, gasoline-powered, homogeneous-charge, spark-ignition engine. This is because of its outstanding performance as a prime mover in the ground transportation industry. Spark-ignition engines also are used in the aeronautics industry; however, aircraft gas turbines have become the prime movers in this sector because of the emphasis of the aeronautics industry on range, speed, and passenger comfort. The domain of internal-combustion engines also includes such exotic devices as supersonic combustion ramjet engines (scramjets), such as those proposed for hypersonic aircraft, and sophisticated rocket engines and motors, such as those used on U.S. space shuttles and other space vehicles.

Charles Lafayette Proctor

automotive industry

Also known as: automobile industry

automotive industry, all those companies and activities involved in the manufacture of motor vehicles, including most components, such as engines and bodies, but excluding tires, batteries, and fuel. The industry’s principal products are passenger automobiles and light trucks, including pickups, vans, and sport utility vehicles. Commercial vehicles (i.e., delivery trucks and large transport trucks, often called semis), though important to the industry, are secondary. The design of modern automotive vehicles is discussed in the articles automobiletruckbus, and motorcycle; automotive engines are described in gasoline engine and diesel engine. The development of the automobile is covered in transportation, history of: The rise of the automobile.

(Read Lee Iacocca’s Britannica entry on Chrysler.)

The history of the automobile industry, though brief compared with that of many other industries, has exceptional interest because of its effects on history from the 20th century. Although the automobile originated in Europe in the late 19th century, the United States completely dominated the world industry for the first half of the 20th century through the invention of mass production techniques. In the second half of the century the situation altered sharply as western European countries and Japan became major producers and exporters.

(Read Henry Ford’s 1926 Britannica essay on mass production.)

History

Although steam-powered road vehicles were produced earlier, the origins of the automotive industry are rooted in the development of the gasoline engine in the 1860s and ’70s, principally in France and Germany. By the beginning of the 20th century, German and French manufacturers had been joined by BritishItalian, and American makers.

Developments before World War I

Most early automobile companies were small shops, hundreds of which each produced a few handmade cars, and nearly all of which abandoned the business soon after going into it. The handful that survived into the era of large-scale production had certain characteristics in common. First, they fell into one of three well-defined categories: they were makers of bicycles, such as Opel in Germany and Morris in Great Britain; builders of horse-drawn vehicles, such as Durant and Studebaker in the United States; or, most frequently, machinery manufacturers. The kinds of machinery included stationary gas engines (Daimler of Germany, Lanchester of Britain, Olds of the United States), marine engines (Vauxhall of Britain), machine tools (Leland of the United States), sheep-shearing machinery (Wolseley of Britain), washing machines (Peerless of the United States), sewing machines (White of the United States), and woodworking and milling machinery (Panhard and Levassor of France). One American company, Pierce, made birdcages, and another, Buick, made plumbing fixtures, including the first enameled cast-iron bathtub. Two notable exceptions to the general pattern were Rolls-Royce in Britain and Ford in the United States, both of which were founded as carmakers by partners who combined engineering talent and business skill.

In the United States almost all of the producers were assemblers who put together components and parts that were manufactured by separate firms. The assembly technique also lent itself to an advantageous method of financing. It was possible to begin building motor vehicles with a minimal investment of capital by buying parts on credit and selling the finished cars for cash; the cash sale from manufacturer to dealer has been integral in the marketing of motor vehicles in the United States ever since. European automotive firms of this period tended to be more self-sufficient.

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The pioneer automobile manufacturer not only had to solve the technical and financial problems of getting into production but also had to make a basic decision about what to produce. After the first success of the gasoline engine, there was widespread experimentation with steam and electricity. For a brief period the electric automobile actually enjoyed the greatest acceptance because it was quiet and easy to operate, but the limitations imposed by battery capacity proved competitively fatal. Especially popular with women, electric cars remained in limited production well into the 1920s. One of the longest-surviving makers, Detroit Electric Car Company, operated on a regular basis through 1929.

Steam power, a more serious rival, was aided by the general adoption, after 1900, of the so-called flash boiler, in which steam could be raised rapidly. The steam car was easy to operate because it did not require an elaborate transmission. On the other hand, high steam pressures were needed to make the engine light enough for use in a road vehicle; suitable engines required expensive construction and were difficult to maintain. By 1910 most manufacturers of steam vehicles had turned to gasoline power. The Stanley brothers in the United States, however, continued to manufacture steam automobiles until the early 1920s.

As often happens with a new technology, the automotive industry experienced patent controversies in its early years. Most notable were two long, drawn-out court cases in Britain and the United States, in each of which a promoter sought to gain control of the new industry by filing comprehensive patents. In Britain the claim was rejected by the courts in 1901, five years after the patent application. In the United States there was a legal battle between Ford and the Association of Licensed Automobile Manufacturers over the Selden patent, which the association claimed as a basic patent on the gasoline-powered car. In 1911 the courts held the patent “valid but not infringed” by Ford. The main consequence of the decision was the formation of the predecessor of the Alliance of Automobile Manufacturers to supervise an agreement for cross-licensing patents, which was ratified in 1915.

Mass production

The outstanding contribution of the automotive industry to technological advance was the introduction of full-scale mass production, a process combining precision, standardization, interchangeability, synchronization, and continuity. Mass production was an American innovation. The United States, with its large population, high standard of living, and long distances, was the natural birthplace of the technique, which had been partly explored in the 19th century. Although Europe had shared in the experimentation, the American role was emphasized in the popular description of standardization and interchangeability as “the American system of manufacture.” The fundamental techniques were known, but they had not previously been applied to the manufacture of a mechanism as complex as a motor vehicle (see work, history of the organization of).

The kind of interchangeability achieved by the “American system” was dramatically demonstrated in 1908 at the British Royal Automobile Club in London: three Cadillac cars were disassembled, the parts were mixed together, 89 parts were removed at random and replaced from dealer’s stock, and the cars were reassembled and driven 800 km (500 miles) without trouble. Henry M. Leland, founder of the Cadillac Motor Car Company and the man responsible for this feat of showmanship, later enlisted the aid of a noted electrical engineer, Charles F. Kettering, in developing the electric starter, a significant innovation in promoting the acceptability of the gasoline-powered automobile.

Ford and the assembly line

 

The mass-produced automobile is generally and correctly attributed to Henry Ford, but he was not alone in seeing the possibilities in a mass market. Ransom E. Olds made the first major bid for the mass market with a famous curved-dash Oldsmobile buggy in 1901. Although the first Oldsmobile was a popular car, it was too lightly built to withstand rough usage. The same defect applied to Olds’s imitators. Ford, more successful in realizing his dream of “a car for the great multitude,” designed his car first and then considered the problem of producing it cheaply. The car was the so-called Model T, the best-known motor vehicle in history. It was built to be durable for service on the rough American country roads of that period, economical to operate, and easy to maintain and repair. It was first put on the market in 1908, and more than 15 million were built before it was discontinued in 1927.

When the design of the Model T proved successful, Ford and his associates turned to the problem of producing the car in large volume and at a low unit cost. The solution was found in the moving assembly line, a method first tested in assembling magnetos. After more experimentation, in 1913 the Ford Motor Company displayed to the world the complete assembly-line mass production of motor vehicles. The technique consisted of two basic elements: a conveyor system and the limitation of each worker to a single repetitive task. Despite its deceptive simplicity, the technique required elaborate planning and synchronization.

The first Ford assembly line permitted only very minor variations in the basic model, a limitation that was compensated for by the low cost. The price of the Model T touring car dropped from $950 in 1909 to $360 in 1916 and still lower to an incredible $290 in 1926. By that time Ford was producing half of all the motor vehicles in the world.

Spread of mass production

Ford’s success inspired imitation and competition, but his primacy remained unchallenged until he lost it in the mid-1920s by refusing to recognize that the Model T had become outmoded. More luxurious and better-styled cars appeared at prices not much higher than that of the Model T, and these were increasingly available to low-income purchasers through a growing used-car market. In Britain, William R. Morris (later Lord Nuffield) undertook to emulate Ford as early as 1912, but he found British engineering firms reluctant to commit themselves to the large-scale manufacture of automotive parts. Morris in fact turned to the United States for his parts, but these early efforts were cut short by World War I. In the 1920s Morris resumed the production of low-priced cars, along with his British competitor Herbert Austin and André-Gustave Citroën and Louis Renault in France. British manufacturers had to face the problem of a tax on horsepower, calculated on a formula based on bore and the number of cylinders. The effect was to encourage the design of small engines that had cylinders with narrow bore and long stroke, in contrast to the wide-bore, short-stroke engines favoured elsewhere. This design handicapped the sale of British cars abroad and kept production from growing. It was not until 1934 that Morris Motors finally felt justified in installing a moving assembly line; the Hillman Company had preceded Morris in this by a year or two.

Large-scale organization

Although the appearance of mass production in the automotive industry coincided with the emergence of large-scale business organization, the two had originated independently. They were related, however, and influenced each other as the industry expanded. Only a large firm could make the heavy investment in plant and tooling that the assembly line required, and Ford was already the largest single American producer when it introduced the technique. The mass producer in turn enjoyed a cost advantage that tended to make it increasingly difficult for smaller competitors to survive. There have been exceptions, but the trend has been consistent.

General Motors

General Motors Corporation (GM), which ultimately became the world’s largest automotive firm and the largest privately owned manufacturing enterprise in the world, was founded in 1908 by William C. Durant, a carriage manufacturer of Flint, Michigan. In 1904 he assumed control of the ailing Buick Motor Company and made it one of the principal American producers. Durant developed the idea for a combination that would produce a variety of models and control its own parts producers. As initially formed, General Motors included four major vehicle manufacturers—Buick, Cadillac, Oldsmobile, and Oakland—and an assortment of smaller firms. The combine ran into financial trouble in 1910 and was reorganized by a financial syndicate. A similar combination, the United States Motor Corporation, was formed in 1910, collapsed in 1912, and was reorganized as the Maxwell Motor Company. General Motors survived. A new reorganization took place after Durant, with backing by E.I. du Pont de Nemours and Company, regained control in 1916. Durant, who had previously established the Chevrolet Motor Company, brought Chevrolet into GM in 1918.

Rise of the Big Three

At the end of World War I, Ford was the colossus, dominating the automotive scene with the Model T not only in the United States but also through branch plants throughout the world. British Ford was the largest single producer in the United Kingdom. GM was emerging as a potential major competitor in the United States. No other automotive firms of comparable size existed.

During the next decade there was a striking transformation. The depression of 1921 had far-reaching effects on the American automotive industry. GM was plunged into another financial crisis. Alfred P. Sloan became president of the corporation in 1923 and raised it to its unchallenged first place in the industry. Among other steps, he gave GM a staff-and-line organization with autonomous manufacturing divisions, which facilitated management of a large corporate structure and became the model for other major automotive combinations. Henry Ford also went through a crisis because the 1921 crash caught him involved in the construction of a large new plant (River Rouge) and in the process of buying out his stockholders. Ford weathered the storm (though many of his dealers, unable to sell cars and not permitted to return them, went out of business), but the Ford Motor Company had reached its crest.

The third member of the “Big Three” automotive manufacturers in the United States was created at this same time. When the Maxwell Motor Company failed in the 1921 depression, Walter P. Chrysler, formerly of General Motors, was called in to reorganize it. It became the Chrysler Corporation in 1925 and grew to major proportions with the acquisition of the Dodge Brothers company in 1928. When Ford went out of production in 1927 to switch from the Model T to the Model A (a process that took 18 months), Chrysler was able to break into the low-priced-car market with the Plymouth.

The independents

By 1929 the Big Three supplied three-fourths of the American market for motor vehicles; most of the remainder was divided among the five largest independents—Hudson, Nash, Packard, Studebaker, and Willys-Overland. In less than 10 years the number of automobile manufacturers in the United States dropped from 108 to 44. Some of the minor carmakers had technological or personal interests, including Nordyke and Marmon, makers of Marmon luxury cars, and E.L. Cord, who marketed front-wheel-drive cars between 1929 and 1937. The depression years of the 1930s eliminated all but the largest independent manufacturers and increased still further the domination of the Big Three. Motor vehicle production declined from a peak of more than five million in 1929 to a low of just over one million in 1932. It rose again slowly but had not returned to the 1929 figure when World War II broke out.

While these years were difficult economically, they saw some significant developments within the industry. Greater emphasis was placed on style in passenger-car design, with the general trend in the direction of incorporating the body, bumpers, and mudguards into a single pattern of smoothly flowing lines. A number of technical features came into general use: the V-8 engine, introduced by Ford in 1932; three-point engine suspension; freewheeling (permitting the car to coast freely when the accelerator was released); overdrive (a fourth forward speed); and, on a limited scale, automatic transmission.

Growth in Europe

The period from 1919 to 1939 also brought significant growth in automobile manufacturing in Europe, though on a considerably smaller scale than in the United States. The European industry was moving in the same directions as the American industry, toward a mass market for motor vehicles, but it made slower progress for a variety of reasons: lower living standards with less purchasing power, smaller national markets, and more restrictions in tax and tariff policies. Still, the same trend toward concentration was discernible. British automotive production rose from 73,000 in 1922 (both private and commercial vehicles) to 239,000 in 1929, while the number of producers declined from 90 to 41. Three firms—Austin, Morris, and Singer—controlled 75 percent of the British market in 1929.

The apparent analogy to the American experience was temporary. British production had not yet reached the level at which the economies of scale gave the larger firms as commanding a lead as in the United States. There were other factors that created a somewhat different situation. During the 1930s British automotive production continued to increase steadily, in contrast to American production, and so the smaller companies were not forced to compete for a shrinking market. Output reached almost half a million in 1937, and at the end of the decade there were six major British producers instead of three: Morris, Austin, Standard, Rootes, Ford, and Vauxhall. The last two represented entry by American firms. Vauxhall had been bought by GM in 1925; Ford had been in Britain since 1911, had lost ground in the 1920s, and had later recovered. The Rootes Group, based on Hillman and Humber, was a combine formed by a family that had built a large automobile sales concern and then moved from sales to production. The replacement of Singer by Standard was simply the rise of one company and the decline of another, as evidence that open competition could still change the structure of the British automotive industry.

In France three major firms—PeugeotRenault, and Citroën—emerged in the 1920s. Citroën accounted for 40 percent of French automotive production in 1925 but had reached that dominating position at the cost of financial stability. When André Citroën died before the decade ended, his company came into the hands of Michelin Tire. A new French firm, Simca, rose to prominence in the 1930s. The German automobile industry suffered from the dislocation of World War I and Germany’s subsequent economic difficulties. The major developments of the 1920s were the merger of Daimler and Benz in 1926, after the founders of those firms had died (their bitter rivalry for the distinction of being the inventor of the gasoline automobile made any such union during their lifetimes unthinkable), and the entry of General Motors onto the German scene through the acquisition of the Adam Opel company in 1929. The Germans were ardent admirers of Henry Ford and his methods, which they termed Fordismus, but Ford never succeeded in becoming a power in the German automotive world. During the 1930s the Nazi regime sought to emulate Ford by undertaking mass production of a low-priced car, the Volkswagen, but the onset of war interrupted this project. Italian automobile manufacturers gained a reputation for highly engineered sports cars and racing cars, but Italy had no mass market and therefore achieved only small-scale production at that time.

The automotive industry in World War II

During World War I the productive capacity of the automotive industry first demonstrated its military value. Motor vehicles were used extensively for transport and supply. In addition, automotive plants could readily be converted into facilities for manufacturing military equipment, including tanks and aircraft. For all of the belligerents the conversion of automotive facilities was an afterthought, improvised after the beginning of hostilities, and the American industry, involved only for a short time, never fully utilized its capacity.

More preparation was made for using the resources of the various automotive industries as World War II approached. The British government built “shadow factories” adjacent to their automotive plants, equipped to go into military production (principally aircraft) when war came, with managerial and technical personnel drawn from the automotive industry. France attempted conversion, but belatedly and inefficiently. The German automotive industry, which built the military vehicles needed for blitzkrieg, was not fully converted to military production until 1943. In the United States the preparation for industrial mobilization was negligible until 1940; in fact, there was no serious effort even to restrict civilian automobile production until after the attack on Pearl Harbor in December 1941. Still, the American automotive industry represented such a concentration of productive capacity and skill that, once its resources had been harnessed to war production, its contribution was tremendous. Between 1940 and 1945 automotive firms made almost $29 billion worth of military materials, a fifth of the country’s entire output. The list included 2,600,000 military trucks and 660,000 jeeps, but production extended well beyond motor vehicles. Automotive firms provided one-half of the machine guns and carbines made in the United States during the war, 60 percent of the tanks, all the armoured cars, and 85 percent of the military helmets and aerial bombs.

It had been assumed that automotive facilities could be readily converted for aircraft production, but this proved more difficult than anticipated. Automobile assembly plants did not readily accommodate airframes, nor could an automobile engine factory be converted without substantial modification. These problems were eventually resolved, and automobile companies contributed significantly to aircraft production.

Britain was better prepared to use the resources of its automotive industry, at that time the world’s second largest. The shadow factories became operative, and Austin, Morris, Standard, Daimler, Ford, and Rootes participated in filling the wartime demand for aircraft and aircraft engines. Leyland Motors and Vauxhall built tanks. Lord Nuffield made a notable contribution to the production effort by establishing a system for repairing aircraft, employing the sales and service organization of Morris Motors, and it was subsequently extended to a large number of small contractors.

The automotive industries of the other belligerents were smaller in scale, and their facilities for armaments manufacture were proportionately greater than in the United States or Great Britain. Consequently, the automotive firms in these countries were concerned chiefly with meeting the insatiable demand for vehicles. The various Ford properties that came under German control, along with Volkswagen, which turned out the German equivalent of the jeep, were employed in this manner. Renault, a tank manufacturer since World War I, built tanks for France and later for Germany.

The automotive industry after 1945

After World War II there was a striking expansion of motor vehicle production. During a 35-year period the total world output increased almost 10-fold. The most significant feature of this increase was that most of it occurred outside the United States. Although American production continued to grow, its share of world automotive production fell from about 80 percent of the total to 20 percent. Among individual countries the United States was the leading producer until the recession of the early 1980s. In 1980 Japan, which had had little automotive manufacturing before the war, became the leading producer, with the European Economic Community (EEC) ranking second. The United States regained the lead in vehicle production in 1994, since by that time Japanese manufacturers were building more of their products in factories in their major overseas markets, such as the United States, in response to economic and political pressures in those markets. However, in the early 21st century, China became the leading manufacturer of cars.

The industry in the United States

At the end of World War II the American automobile industry had intact facilities, somewhat enlarged by construction for military needs. There was also a great demand for automobiles. This situation invited several attempts by newcomers to enter the industry, but all proved unsuccessful. The most promising, Kaiser-Frazer Corporation, lasted some 10 years but lacked the financial, technical, and sales resources to compete when the automobile market returned to normal. By the mid 1950s Kaiser-Frazer had stopped producing everything but Willys Jeeps, an operation that it had acquired by buying Willys-Overland. The manufacture of Jeeps continued as a subsidiary of Kaiser Industries until 1970, when the division was sold to American Motors Corporation (AMC) in a transaction that gave Kaiser financial interest in AMC.

The trend of the automotive industry to mergers and large-scale organization, and to a situation in which each producer could affect but not control the market, continued unchecked. In 1954 Nash and Hudson joined to form AMC. The company enjoyed temporary prosperity in the late 1950s when it introduced the first American compact car, the Rambler, in response to growing imports of small foreign cars. A merger of Studebaker and Packard in 1954 was less successful. The new company stopped production in the United States in 1964 and in Canada two years later.

Declining sales and heavy financial losses pushed the Chrysler Corporation close to bankruptcy in the late 1970s. Attempting to avert the company’s collapse, the U.S. government granted Chrysler $1.5 billion in loan guarantees. In return Chrysler surrendered supervisory control to the government’s Chrysler Loan Guarantee Board. By exercising such control, the U.S. government became a de facto partner of the country’s third largest automaker. The government’s influence was short-lived as Chrysler, under the leadership of Lee A. Iacocca, returned to profitability and repaid its government loans in 1983, seven years early.

By the early 1980s the automotive industry in the United States was concentrated in four major firms—GM, Ford, Chrysler, and AMC—and one important manufacturer of commercial vehicles, International Harvester Company. A few producers of specialized vehicles remained, along with an assortment of companies that made automotive parts and components.

Increasing competition from imported cars and from new manufacturing operations established by European and Japanese firms continued to reduce the share of the American market controlled by the four domestic manufacturers through the remainder of the 20th century. Germany’s Volkswagen opened an assembly operation in the United States in the late 1970s but closed it a decade later. Japan’s Nissan Motor Corporation established a plant in the early 1980s to build its popular small pickups and later added car production. Another Japanese automaker, Honda Motor Company, followed with a car manufacturing operation adjacent to its motorcycle plant; it later added a second car facility in the United States and a car plant in Canada. Japan’s Toyota Motor Corporation formed a joint venture with GM called New United Motor Manufacturing Incorporated, which built small cars for both Toyota and GM. Toyota also opened two plants of its own in the United States—one for cars and small vans and the other for pickup trucks and sport utility vehicles—and a car-making facility in Canada. A number of other Japanese manufacturers opened plants in the United States as joint-venture operations.

Many of the Japanese-owned American plants were built in response to limitations imposed on exports of cars to the United States by Japan’s Ministry of International Trade and Industry. The restrictions followed threats of sanctions by the United States in the wake of Chrysler’s near collapse and heavy losses by Ford and GM. Called the Voluntary Restraint Agreement (VRA), it spelled out how many cars each Japanese producer could ship to the United States in a single year. The VRA took effect in 1981 and was renewed annually through the early 1990s. A similar agreement was in effect in Canada during the 1980s.

In 1979 Renault of France acquired a 46 percent interest in AMC to increase its small presence in the United States and gain access to AMC’s line of popular Jeep vehicles. Mounting financial pressures, however, prompted Renault to sell its AMC stake to a reinvigorated Chrysler in 1987. Chrysler quickly acquired all outstanding AMC stock and made the company a division. In 1998 Chrysler was merged with Germany’s Daimler-Benz AG, which then became DaimlerChrysler AG; the joint venture ended in 2007.

In 2008 the U.S. auto industry seemed close to collapse amid the global financial crisis. Through the Troubled Assets Relief Program (TARP), billions in loans were made available to GM, Chrysler, and Ford; only the last automaker did not accept the government relief. Despite the assistance, GM filed for Chapter 11 bankruptcy protection in June 2009. It emerged from bankruptcy reorganization the following month and went through a period of downsizing that helped it rebound. Chrysler also filed for bankruptcy in 2009, and shortly thereafter the Italian automaker Fiat bought a share of the automaker, eventually becoming a majority shareholder in 2011.

Technically, the initial decades after World War II were marked by improvement and refinement rather than by important innovationDiesel engines were increasingly used on trucks and buses. Automatic transmissions became virtually standard equipment for passenger cars, and power brakes and power steering found widespread acceptance, as did luxury features such as air-conditioning. In the early 1960s Chrysler experimented with a gas turbine engine for passenger automobiles, but it had too many technical problems for general use. By the early 21st century, automakers were facing new design issues, as growing concerns about climate change had resulted in a push for more fuel-efficient cars, including electric vehicles.

Styling became increasingly important in automotive design as a marketing device. The general trend in styling became established late in the 1920s when cars began to lose their square, boxlike lines and to develop flowing curves. In time the new design encompassed both body and chassis, integrating such formerly separate features as mudguards, running boards, and bumpers. A combination of pressures made American cars of the 1950s high-powered and ornate, with extravagant use of chrome and exaggerated tail fins; these features were abandoned when the public found the simpler lines of imported cars more attractive.

Europe after World War II

In Europe motor vehicles were recognized as an export item that could help restore war-shattered economies. Britain, for example, earmarked more than half of its automotive output for export and restricted domestic purchases for several years after the war. In addition, the horsepower tax was abandoned to enable British manufacturers to build profitably for the world market. The most popular British designs (excluding specialized luxury vehicles such as the Rolls-Royce) continued to be lightweight cars, including several models with an ingenious front-wheel drive. The trend to consolidation led in 1952 to the merger of Morris and Austin to form the British Motor Corporation, Ltd., a combine that accounted for about two-fifths of Britain’s motor vehicle production. Another British combine was formed around Leyland Motors, which had grown into the country’s largest manufacturer of commercial vehicles and became a power in the passenger-car field by acquiring Standard-Triumph and Sunbeam in the 1950s. Leyland and the British Motor Corporation united in 1968 as the British Leyland Motor Corporation (later British Leyland Ltd. and, after 1978, BL Ltd.); this move, sanctioned by the government, was intended to forestall possible American domination of the British automobile industry. Except for Rolls-Royce, whose automobile production was only a very small part of the company’s business, British automobile output was then largely controlled by four firms: British Leyland, Ford, Vauxhall, and Rootes, which came under Chrysler control in 1967 but was sold off to France’s Peugeot-Citroën in 1978. When British Leyland had financial difficulties in the early 1970s, it was taken over by the government.

In the 1980s the remaining parts of BL, which by then was focused on building Jaguar, Mini, and Rover cars and Land Rover sport utility vehicles and commercial trucks, became the Rover Group. Eventually Jaguar regained profitability, and the British government sold off the company through a public stock offering. The remaining Rover/Mini operations were acquired by British Aerospace Corporation. Rover then entered into a cooperative venture with Japan’s Honda in which cars of Honda design were built at Rover plants for sale in Britain and other European countries under the Rover and Honda brands. A small number also were exported to the United States under the Sterling name. Eventually Honda became dissatisfied with the venture, and British Aerospace sold the Rover/Mini operations to BMW of Germany in 1994. In 2000 BMW sold the Land Rover segment to Ford, which had acquired the stock of Jaguar in 1989, while its Rover cars segment was spun off to a British consortium and became MG Rover Group Ltd. BMW retained the profitable Mini operations. In the late 1990s Britain’s Rolls-Royce Motor Cars, then owned by Vickers PLC, became the subject of a bidding war in which Germany’s Volkswagen emerged as the owner of the company’s Bentley brand and all of its manufacturing facilities; BMW emerged as the owner of the Rolls-Royce brand with respect to cars, effective at the end of 2002. Three years later the ailing MG Rover Group was forced to sell off its assets, and in 2008 Ford sold Jaguar and Land Rover to the Tata Group of India. In addition, GM sold Vauxhall to the French PSA Group in 2017.

The post-World War II revival of the German automobile industry from almost total destruction was a spectacular feat, with most emphasis centring on the Volkswagen. At the end of the war the Volkswagen factory and the city of Wolfsburg were in ruins. Restored to production, in a little more than a decade the plant was producing one-half of West Germany’s motor vehicles and had established a strong position in the world market. Breaking away from what had become standard design, the Volkswagen used a four-cylinder air-cooled engine at the rear of the car. It also dispensed with the annual model change that had become customary with other automobile manufacturers. Although the company had been founded by the German government, in the 1960s the government divested itself of 60 percent of its interest by selling stock to the public, an unusual case of denationalization in an era when nationalization of industry was far more common. In the same decade, Volkswagen acquired Auto Union, which evolved into its Audi luxury car segment. In the late 1960s BMW rose from a builder of small, oddly styled Isetta cars and motorcycles into one noted for high-priced passenger vehicles and premium motorcycles. Opel became the base for the European operations of General Motors, and by the 1990s it supplied much of the small-car engineering expertise for GM operations around the world; however, Opel was sold to the PSA Group in 2017. Prior to its merger with Chrysler Corporation in 1998, Daimler-Benz had developed diversified interests ranging from trains to aerospace products. After Daimler and Chrysler split in 2007, Daimler-Benz was renamed Daimler AG.

Fiat (Fabbrica Italiana Automobili Torino), a firm founded in 1899 but without a mass market until the 1950s, dominated Italian automotive production. The French industry was centred on Renault, Peugeot, Citroën, and Simca. Renault was nationalized at the end of World War II, and it became a public corporation in the 1990s. Citroën was acquired in 1976 by independently owned Peugeot to form PSA Peugeot-Citroën (later PSA Group). Simca became a Chrysler property in 1958 but was sold to Peugeot in the late 1970s. Although Sweden was a relatively small producer, Swedish builders Saab and Volvo became important factors in the world market during the 1960s and ’70s. Their car operations were acquired in the 1980s and ’90s by General Motors and Ford, respectively. However, both Saab and Volvo were sold in 2010, and the former went bankrupt the following year.

Japan

The most spectacular increases in automotive production after World War II occurred in Japan. From a negligible position in 1950, Japan in 30 years moved past West Germany, France, Great Britain, and the United States to become the world’s leading automotive producer. Steadily growing export sales of Japan’s small, fuel-efficient cars played a major role in this achievement. During the late 1970s and early ’80s, Japan’s principal automakers—ToyotaNissanHonda, and Tōyō Kōgyō (later Mazda)—enjoyed impressive export gains in North American and western European markets. These companies as well as Mitsubishi, Isuzu, Fuji, and Suzuki later opened manufacturing plants in major markets outside Japan to ease trade tensions and increase their competitiveness as the value of Japan’s currency soared. By the 1980s Japan’s carmakers were seen as the models for others to emulate, especially for their “just-in-time” method of delivering components to the assembly plants (see Consolidation, below) and the use of statistical process controls for enhancing vehicle quality, which ironically had been developed in the 1950s by an American but rejected at the time by American manufacturers.

In the 1990s the Japanese economy suffered a severe and prolonged recession, and the complicated interlocking relationships and cross-ownerships between Japanese automakers and their major component manufacturers and banks imposed severe financial hardship. At the end of the 20th century, many Japanese automakers and several major component manufacturers were either controlled by or had joint operations with non-Japanese firms. Renault, for example, held a controlling interest in Nissan, and in 2016 Mitsubishi joined the Renault-Nissan alliance.

South Korea

In a span of 20 years beginning in the 1970s, South Korea’s automotive industry rose from a small government-controlled parochial industry to a significant place in the world market. Three major companies—Hyundai Motor Company, Kia Motors Corporation, and Daewoo Motor Corporation—accounted for about 90 percent of the South Korean market, while the remainder was split among two minor producers and imports. Hyundai, the country’s dominant automaker, produced cars, light trucks, and commercial trucks and buses; it was part of the larger Hyundai Corporation, which had interests ranging from construction to shipbuildingKia, South Korea’s second largest automaker, was acquired by Hyundai in 1999. Daewoo, owned by the Daewoo Group conglomerate, entered the automobile field on a large scale in the 1980s and had won nearly a fifth of the market before entering into financial receivership and reorganization in 2000. Two years later it was sold to General Motors.

The modern industry

The modern automotive industry is huge. In the United States it is the largest single manufacturing enterprise in terms of total value of products, value added by manufacture, and number of wage earners employed. One of every six American businesses is dependent on the manufacture, distribution, servicing, or use of motor vehicles; sales and receipts of automotive firms represent more than one-fifth of the country’s wholesale business and more than one-fourth of its retail trade. For other countries these proportions are somewhat smaller, but JapanSouth Korea, and the countries of western Europe have been rapidly approaching the level in the United States.

Consolidation

The trend toward consolidation in the industry has already been traced. In each of the major producing countries the output of motor vehicles is in the hands of a few very large firms, and small independent producers have virtually disappeared. The fundamental cause of this trend is mass production, which requires a heavy investment in equipment and tooling and is therefore feasible only for a large organization. Once the technique is instituted, the resulting economies of scale give the large firm a commanding advantage, provided of course that the market can absorb the number of vehicles that must be built to justify the investment. Although the precise numbers required are difficult to determine, the best calculations, considering both the assembly operation and the stamping of body panels, place the optimum output at between 200,000 and 400,000 cars per year for a single plant. Increasingly stringent and costly regulations aimed at correcting environmental damage due to the rising number of vehicles on the road also have been a factor in the move toward consolidation.

The structural organization of these giant enterprises, despite individual variation, resembles the pattern first adopted by General Motors in the 1920s. There is a central organization with an executive committee responsible for overall policy and planning. The operating divisions are semiautonomous, each reporting directly to the central authority but responsible for its own internal management. In some situations the operating divisions even compete with each other. The Ford Motor Company was consciously reorganized on the GM pattern after World War II; other American automotive firms have similar structures.

In addition, the largest producers decentralize their manufacturing operations by means of regional assembly plants. These permit the central factory to ship frames and components rather than complete automobiles to the areas served by the assembly plants, effecting substantial savings in transportation costs. This system was developed for the Ford company in 1911.

Some alteration of that principle took place in the 1980s and ’90s as Japanese firms built new plants around the world and American and European manufacturers adopted, to varying degrees, the Japanese “just-in-time” inventory method. Rather than stockpiling a large number of parts at the assembly plant or shipping all the parts from central locations, automakers have yielded the manufacture of many noncritical components (such as seats and wheel assemblies) to independent suppliers to make the pieces at small facilities close to the assembly plants. The components are often assembled into larger groups of parts or modules (a complete instrument panel, for example) and sent to the assembly plant in the exact sequence and at the exact time needed.

Diversity of products

The automotive industry’s immense resources in production facilities and technical and managerial skills have been devoted predominantly to the building of motor vehicles, but there has been a consistent and strong incentive to extend into related products and occasionally into operations whose relationship to automobiles is remote. The Ford Motor Company, for example, once manufactured tractors and made the famous Ford Trimotor all-metal transport airplane in the late 1920s and early ’30s. GM manufactured refrigerators and diesel-powered railway locomotives. By the end of the 20th century, however, Ford and GM had divested themselves of most of their nonautomotive operations and had spun off the majority of their automotive component-making divisions into separate stock companies—Delphi Automotive Systems in the case of General Motors and Visteon Automotive in the case of Ford.

In Europe, but to a lesser extent, automakers also divested noncore operations, while depressed economic conditions in Japan forced auto companies there to begin divorcing themselves from nonautomotive and components companies in which they had long held interests. By the late 1990s the trend was toward more international consolidation of core automotive operations.

New car development

The process of putting a new car on the market has become largely standardized. If a completely new model is contemplated, the first step is a market survey. Since there may be an interval of five years between this survey and the appearance of the new car in the dealers’ showrooms, there is a distinct element of risk, as illustrated by the Ford Motor Company’s Edsel of the late 1950s. (Market research had indicated a demand for a car in a relatively high price range, but, by the time the Edsel appeared, both public taste and economic conditions had changed.) Conferences then follow for engineers, stylists, and executives to agree on the basic design. The next stage is a mock-up of the car, on which revisions and refinements can be worked out.

Because of the increasingly competitive and international nature of the industry, manufacturers have employed various means to shorten the time from conception to production to less than three years in many cases. This has been done at GM, for example, by incorporating vehicle engineers, designers, manufacturing engineers, and marketing managers into a single team responsible for the design, engineering, and marketing launch of the new model. Automakers also involve component manufacturers in the design process to eliminate costly time-consuming reengineering later. Often the component maker is given full responsibility for the design and engineering of a part as well as for its manufacture.

Manufacturing processes

The bulk of the world’s new cars come from the moving assembly line introduced by Ford, but the process is much more refined and elaborated today. The first requisite of this process is an accurately controlled flow of materials into the assembly plants. No company can afford either the money or the space to stockpile the parts and components needed for any extended period of production. Interruption or confusion in the flow of materials quickly stops production. Ford envisioned an organization in which no item was ever at rest from the time the raw material was extracted until the vehicle was completed—a dream that has not yet been realized.

The need for careful control over the flow of materials is an incentive for automobile firms to manufacture their own components, sometimes directly but more often through subsidiaries. Yet complete integration does not exist, nor is it desirable. Tires, batteries, and dashboard instruments are generally procured from outside sources. In addition, and for the same reasons, the largest companies support outside suppliers even for items of in-house manufacture. First, it may be more economical to buy externally than to provide additional internal facilities for the purpose. Second, the supplier firm may have special equipment and capability. Third, the outside supplier provides a check on the costs of the in-house operation. American companies rely more than others on independent suppliers.

Production of a new model also calls for elaborate tooling, and the larger the output, the more highly specialized the tools in which the manufacturer is willing to invest. For example, it is expensive to install a stamping press exclusively to make a single body panel for a single model, but, if the model run reaches several hundred thousand, the cost is amply justified.

The assembly process itself has a quite uniform pattern throughout the world. As a rule, there are two main assembly lines, body and chassis. On the first the body panels are welded together, the doors and windows are installed, and the body is painted and trimmed (with upholstery, interior hardware, and wiring). On the second line the frame has the springs, wheels, steering gear, and power train (engine, transmission, drive shaft, and differential) installed, plus the brakes and exhaust system. The two lines merge at the point at which the car is finished except for minor items and necessary testing and inspection. A variation on this process is “unitized” construction, whereby the body and frame are assembled as a unit. In this system the undercarriage still goes down the chassis line for the power train, front suspension, and rear axle, to be supported on pedestals until they are joined to the unitized body structure. Most passenger vehicles today are manufactured by the unitized method, and most trucks and commercial vehicles still employ a separate frame.

Assembly lines have been elaborately refined by automatic control systems, transfer machines, computer-guided welding robots, and other automated equipment, which have replaced many manual operations when volume is high. Austin Motors in Britain pioneered with its automatic transfer machines in 1950. The first large-scale automated installation in the United States was a Ford Motor Company engine plant that went into production in 1951. A universal form of automatic control has used computers to schedule assembly operations so that a variety of styles can be programmed along the same assembly line. Customers can be offered wide choices in body styles, wheel patterns, and colour combinations.

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