• The 1901 Mercedes, designed by Wilhelm Maybach for Daimler Motoren Gesellschaft, deserves credit for being the first modern motorcar in all essentials. Its thirty-five-horsepower engine weighed only fourteen pounds per horsepower, and it achieved a speed of fifty-three miles per hour. But as late as 1909, with the most integrated automobile factory in Europe, Daimler employed some seventeen hundred workers to produce fewer than a thousand cars per year.
• Nothing illustrates the superiority of European design better than the sharp contrast between this first Mercedes model and Ransom E. Olds’s 1901-1906 one-cylinder, three-horsepower, tiller-steered, curved-dash Oldsmobile, which was merely a motorized horse buggy. But the Olds sold for only $650, putting it within reach of middle-class Americans, and the 1904 Olds output of 5,508 units surpassed any car production previously accomplished. The central problem of automotive technology over the first decade of the twentieth century would be reconciling the advanced design of the 1901 Mercedes with the moderate price and low operating expenses of the Olds. This would be overwhelmingly an American achievement.
• Bicycle mechanics J. Frank and Charles E. Duryea of Springfield, Massachusetts, had designed the first successful American gasoline automobile in 1893, then won the first American automobile race in 1895, and went on to make the first sale of an American-made gasoline car the next year. Thirty American manufacturers produced 2,500 motor vehicles in 1899, and some 485 companies entered the business in the next decade. In 1908 Henry Ford introduced theModel T and William C. Durant founded General Motors.

• Given the American manufacturing tradition, it was also inevitable that cars would be produced in larger volume at lower prices than in Europe. The absence of tariff barriers between the states encouraged sales over a wide geographic area. Cheap raw materials and a chronic shortage of skilled labor early encouraged the mechanization of industrial processes in the United States. This in turn required the standardization of products and resulted in the volume production of such commodities as firearms, sewing machines, bicycles, and many other items. In 1913, the United States produced some 485,000 of the world total of 606,124 motor vehicles.

Although the blueprint for the modern automobile was perfected in Germany and France in the late 1800s, Americans dominated the industry in the first half of the twentieth century. Henry Ford innovated mass-production techniques that became standard, with Ford, General Motors and Chrysler emerging as the “Big Three” auto companies by the 1920s. Manufacturers funneled their resources to the military during World War II, and afterward automobile production in Europe and Japan soared to meet demand. Once vital to the expansion of American urban centers, the industry had become a shared global enterprise with the rise of Japan as the leading automaker by 1980.