The Automobile

David J. Andrea and Michael S. Flynn, "Automobile," World Book Online Americas Edition, http://www.aolsvc.worldbook.aol.com/wbol/wbPage/na/ar/co/039020, January 10, 2002.


Automobile is the most important means of personal transportation for many millions of people around the globe. People depend on their cars and trucks to travel to and from work, to run errands, to visit friends, and to take vacations. Companies and government organizations operate commercial fleets of automobiles.

The United States, Canada, Japan, Western European countries, and other developed nations have the most automobiles. But even in developing nations, more and more people own cars, and bumper-to-bumper traffic clogs the streets of big cities in many of those countries.

The origin of the automobile can be traced to Europe. But it became a major form of transportation first in the United States. Most European cars were built by hand. They were expensive, and few people could afford them. In the early 1900's, Ransom E. Olds, Henry Ford, and other pioneer automakers began mass-producing cars. Although some people disliked the "horseless carriage," many welcomed the introduction of the new machine because it would replace horse-drawn carriages. Unsightly horse droppings would no longer litter the streets, creating a stench and attracting disease-bearing flies. No longer would people be burdened by the need to keep horses or be limited to traveling short distances.

The giant U.S. auto industry developed over the years as an increasing number of people bought cars. Americans were said to have a love affair with the automobile, and the United States became a nation on wheels. The automobile revolutionized the American way of life and would change living patterns in much the same way when it spread to other countries. The automobile helped give people the freedom to live, work, and travel wherever they wanted. It ended the lonely lives of farm families by placing neighbors, cities, and towns within easy reach. The automobile led to the growth of suburbs, motels, shopping centers, superhighways, theme parks, drive-in restaurants, and drive-through banks.

But along with all the glories of the automobile culture came serious problems. Car accidents became a major cause of death and injury throughout the world, exhaust fumes fouled the air, and the roar of city traffic became nerve-racking. Some people yearned for the old days before the automobile, when life seemed simpler, slower, and gentler. But there could be no going back. The automobile had become woven into the fabric of modern life. And the auto industry itself had become basic to the economic well-being of developed countries. Today, many developing nations also seek to set up an automotive industry because it generates and supports a wide range of businesses, such as automobile dealerships, garages, and filling stations, and so can stimulate economic growth.

The importance of automobiles
The development of automobiles has had an enormous effect on people's way of life throughout much of the world. Probably no other invention, discovery, or technological advance has created greater or more rapid changes in society.

Impact on society. The automobile has given many people incredible freedom of movement. It enables them to decide where they want to go and when. The automobile influences where people live and work and how they spend their leisure time. The striking changes in people's lives created by the automobile began in the United States and have since spread across much of the globe, especially in developed countries. But even in developing nations, the automobile is increasingly reshaping patterns of living.

When the first automobiles were produced, only the well-to-do could afford them. Soon, however, prices declined as production increased in response to the growing demand. The lower prices put the automobile within reach of more and more people. Well-off urban residents found car ownership cheaper than keeping a horse and carriage. The growth in car ownership led to the building of more and better roads, which further increased travel.

Although cars were first bought mainly by wealthy city folk, it was country people who became the first large-scale group of car owners. During the late 1890's, most people in North America and Europe lived in rural areas and had little contact with people more than 20 miles (32 kilometers) or so away. Many of these people were farmers or residents of small towns that served farmers. In the early 1900's, they became the first mass group of car buyers. Automobiles enabled farmers to sell their goods faster and farther away, and to travel more often and in greater comfort than ever before.

Before the development of automobiles, urban workers walked, bicycled, or rode trains or horse-drawn vehicles to their jobs. But as roads improved and car ownership expanded, the freedom provided by automobile ownership enabled more and more people to move to the suburbs. By the mid-1950's, even factories had begun to relocate in the suburbs.

Wherever people have easy access to automobiles, cars play a major role in social life and the choice of recreational activities. People find it fun to hop in the car and visit friends and relatives, whether the drive takes a few minutes, hours, or days. The automobile helps make it easy to organize picnics, family reunions, and other get-togethers. Trips by automobile to such places as theme parks, national parks, and mountain and seashore resorts are a favorite type of vacation for many people.

Economic impact. Such developed nations as the United States, Japan, Germany, and Italy depend on automotive production to provide jobs for millions of workers. But even in developed nations with little or no automotive production—for example, Norway and New Zealand—the widespread use of cars has become vital to the economy. Filling stations, motels, restaurants, and other businesses that serve automobile travelers are of major importance to the economic well-being of all developed countries and increasingly of developing ones. In addition, many developing nations have begun making automotive vehicles or parts to stimulate industry and to provide the vehicles needed for growth. For example, China has promoted broad-based automotive manufacturing, and the Philippines has expanded parts production for export to carmakers in other countries. For more information on the automobile's economic impact, see the section The automobile industry.

Problems of safety. Each year, motor vehicle accidents kill an estimated 300,000 people throughout the world. A high percentage of those killed in automobile accidents are young people. In fact, in the United States, traffic accidents are the leading cause of death for people from 5 to 32 years old. Young people also have the highest accident rate of all drivers.

Almost every accident results from one or more of these three factors: the driver, the car, and the road. The same three factors contribute to accident prevention.

Drivers are the chief factor in vehicle safety because they are responsible for about two-thirds of all accidents. They cause accidents by speeding, driving in the wrong lane, making improper turns, and breaking other rules of safe driving. Many traffic deaths involve drunken drivers. Alcohol slows a driver's reflexes, reduces alertness and concentration, impairs vision, and clouds judgment. The use of illegal drugs by drivers is also a serious safety problem.

The automobile itself has become safer over the years because of advances in its design and manufacture. Automakers must meet strict government standards designed to prevent accidents and to protect drivers and passengers. The standards to prevent accidents involve the installation of government-specified lights, reflectors, brakes, tires, windows, windshield wipers and defrosters, and dashboard controls. Standards to protect car occupants include the installation of seat belts or air bags, head restraints, and bumper systems. Seat belts—when used—are probably the main safety equipment. A driver must not assume that the engine, brakes, lights, and steering system always operate properly. All equipment should be tested frequently.

Modern roadbuilding techniques have increasingly lowered the risk of automobile accidents. To build safe roads, highway engineers consider such factors as road foundations and surfaces, lighting, guardrails, and grading. They carefully plan bypasses, intersections, on-and-off ramps, traffic signals, and the number of lanes.

Environmental impact. As automobiles burn gasoline, they release hydrocarbons, carbon monoxide, and nitrogen oxides into the air and so pollute it. Air pollution endangers people's health and damages crops and livestock. Automobiles produce terrible pollution in many of the world's big cities. Especially severe pollution occurs in such cities as Los Angeles, Mexico City, Tokyo, and Madrid, where the streets and highways are choked with traffic.

In many countries, steps have been taken to control air pollution caused by automobiles as well as by other sources. Government agencies enforce emission standards that limit the amount of pollution new automobiles may produce. The agency that enforces these regulations in the United States is the Environmental Protection Agency (EPA).

Automakers have made great progress in reducing the emission of major pollutants by meeting the increasingly strict environmental standards. From the 1960's to the 1990's, the emission of hydrocarbons and carbon monoxide by American-built cars was reduced more than 95 percent and nitrogen oxides more than 90 percent. The reduction was achieved largely with the installation of a catalytic converter in the exhaust system of cars. The device changes carbon monoxide and hydrocarbons into carbon dioxide and water vapor. In 1990, the U.S. Congress passed new rules calling for even tougher limits on the emission of pollutants.

How an automobile works

This section describes the major interconnected systems that function together in the operation of an automobile. But first, it may be helpful to understand the basic way in which the typical car works.

Most automobiles made today have a front-mounted, gasoline-burning engine; an automatic transmission; and front-wheel drive. The typical engine is an internal-combustion engine, which works by burning a mixture of gasoline and air inside closed cylinders. When you turn the car's ignition key, electric current from the battery causes the starting motor to crank the engine. Pistons move up and down inside the engine's cylinders. As the pistons move down, intake valves above the cylinders open, and fuel and air are sucked into the cylinders. The pistons then move back up the cylinders, compressing the fuel-air mixture. Electric sparks from the ignition system's spark plugs ignite the mixture, and the engine starts to run as the pistons move rapidly.

Expansion of the burning gases forces the pistons down, and these downstrokes provide the power that moves the car. The pistons' downstrokes turn the crankshaft. Power travels from the crankshaft to the transmission and, finally, to the front wheels. Burned gases escape as the exhaust valves above the cylinders open and the pistons move up, forcing the waste products out through the catalytic converter, muffler, and tail pipe.

The power system. The heart of an automobile's power system—indeed, the heart of the car itself—is the engine. It produces the power that turns the wheels and that generates the electric power to operate the lights and accessories. The power system also includes (1) the fuel system, (2) the exhaust system, (3) the cooling system, and (4) the lubrication system.

The engine. Most automobiles have a gasoline engine. The majority of cars have the engine in the front of the vehicle. Others have it mounted in the rear or the middle. The engine block, also called the cylinder block, houses the engine's internal parts and provides the foundation for pumps, pulleys, and other accessory parts. Blocks are cast from iron, iron alloys, or aluminum. The engine block contains the cylinder cavities in which the pistons move.

The number and arrangement of the cylinders varies among the makes of cars. American cars have 4, 6, or 8 cylinders. Cars made in other countries also have 2, 3, 5, or even 12. In most cases, the cylinders are arranged either in a straight line or in two equal rows set at an angle to form a V shape. An in-line engine with, for example, 4 or 6 cylinders is called a straight 4 or a straight 6. A V-type engine with, for example, 4, 6, or 8 cylinders is called a V-4, V-6, or V-8. Typically, the more cylinders an engine has, the greater its power.

The gasoline engine operates on a four-stroke cycle in most cars. On the intake stroke, the piston moves down the cylinder and draws in a fuel-air mixture as the intake valve opens. The valve then closes, and the piston moves back up the cylinder on the compression stroke, squeezing the fuel-air mixture. At the top of the stroke, the spark plug ignites the compressed mixture. The burning causes the gases to expand, forcing the piston down in the power stroke. On the exhaust stroke, the piston moves up again and pushes the burned gases out the open exhaust valve. The exhaust valve then closes, the intake valve opens, and the cycle starts again.

During the power stroke, the connecting rod transfers energy from the piston to the crankshaft, which then transmits the energy to the transmission. For a car's wheels to turn, the up-and-down movement of the pistons must be converted to rotary motion. The connecting rod and crankshaft do the job. The connecting rod turns the pistons' up-and-down motions into the crankshaft's rotary motion.

Highly advanced devices regulate modern engines. An electronic control unit receives data regarding engine speed, air pressure and temperature, and other factors. The unit uses the data to regulate the timing of the ignition sparks and the fuel flow. It adjusts the engine hundreds of times a minute.

For more information, see the article Gasoline engine. To learn about other types of engines used in some cars, see the articles Diesel engine; Rotary engine; Turbine.

The fuel system stores fuel in a car's gasoline tank and transports it to the engine. Most tanks hold 12 to 20 gallons (45 to 76 liters) and are made of steel or plastic. The fuel system also mixes the gasoline with air. To burn efficiently, the gasoline must first be vaporized into fine droplets and then mixed with the air.

Most cars produced since the late 1980's use a system called fuel injection, which times and delivers precise amounts of gasoline. A pump in the fuel tank or mounted on the engine forces the gasoline under high pressure from the tank through fuel lines to fuel injectors. An injection system may be multiport or single point. Most automobiles today have a multiport system, also called a direct-port system, which has an injector for each cylinder. A single-point system, on the other hand, injects fuel into the throat of the intake manifold, which is basically a pipe with a branch to each cylinder. The standard injector has a needle valve. Electric current opens the valve, allowing the pressurized fuel to spray out. See the article Fuel injection for more information.

Some older cars use a device called a carburetor to provide the fuel-air mixture. But fuel injection has largely replaced the carburetor. In a carbureted engine, it is difficult to control the fuel precisely enough to achieve the low emissions and the fuel efficiency demanded in today's cars. See Carburetor.

The exhaust system works with the emission control system. The exhaust system removes the burned gases from the engine, and the emission control system reduces air pollution.

Even with precise fuel injection controls, the engine does not burn all the fuel completely and so produces emissions that may be harmful. The burned and partly burned gases leave the engine and enter a pipe or set of pipes called the exhaust manifold. They then go through the exhaust pipe to the catalytic converter. The interior of this device is divided into honeycomblike cells or, less commonly, is packed with tiny pellets. The cell walls or pellets are coated with certain rare metals, such as platinum, palladium, and rhodium. As the exhaust flows over the metals, a chemical process occurs that breaks down the pollutants into safer emissions. See Catalytic converter.

Next, the exhaust gases pass to the muffler. Exhaust leaves the engine rapidly and at a far higher temperature than the outside air. If released directly into the air, the exhaust would expand suddenly and create loud noise. A muffler uses a series of tubes pierced with holes to cool and slow the exhaust before it exits the car through the tail pipe. See Muffler.

While a car is moving or parked in the sun, gasoline evaporates from the vehicle. This evaporation can release harmful hydrocarbons into the atmosphere. A separate system controls such emission by collecting the vapors and channeling them to the engine for burning.

The cooling system keeps the engine from overheating, which could damage it. Most automobiles use a coolant consisting of about half water and half antifreeze. A pump on the front of the engine circulates the coolant through passages called water jackets, which surround the cylinders. The coolant absorbs engine heat as it flows through the water jackets. The heated coolant then passes through copper or aluminum tubes in the radiator. Copper or aluminum fins around the tubes absorb heat from the coolant in the tubes. The motion of the car and, at slower speeds, the action of a fan, draw air through the radiator. As the air moves between the fins, it absorbs their heat. The cooled coolant returns to the engine, and the process starts over. A thermostat controls the engine temperature by regulating the flow of coolant through the radiator.

The lubrication system delivers oil to the moving parts of the engine. As the oil circulates through passages in the engine, it spreads a film on the parts. Lubrication reduces friction and so minimizes engine wear. The oil also helps cool the engine. Oil is stored in a pan under the engine. A pump circulates oil from the pan through a filter and then through lines to the engine. The filter prevents impurities from entering the engine.

The power train, also called the drive train, transmits power from the engine to the driving wheels—the wheels that make a vehicle go. The power train's parts include (1) the transmission and (2) the drive system.

The transmission gets power from the rotary movement of the flywheel, a heavy disk that is turned by the crankshaft. This rotary movement has two related aspects: speed and torque. Speed refers to the rate of rotation, and torque to twisting force. The transmission uses gears to vary the ratio of speed to torque. For example, a car requires great torque to be put into motion from rest. But as the car moves, it needs less torque and more speed. The first gear, also called low gear, provides the greatest torque and lowest speed. As the car goes faster and the transmission shifts to higher gears, torque decreases and speed increases.

If a car has a manual transmission, the driver shifts gears with a gearshift. After the car has been put into motion and gains speed, the driver shifts to second gear and then to higher gears. Most manual transmissions in new cars have five forward speeds and one reverse gear. When shifting gears, the driver must step on the clutch to disconnect the engine from the transmission.

If a car has an automatic transmission, the driver does not have to operate a gearshift and clutch. To move ahead, the driver simply slides the selector lever to the drive position. A microcomputer and hydraulic oil pressure control the transmission on the basis of the car's speed, shifting to the gear that is best for a given driving condition. In new cars, most automatic transmissions have three or four forward speeds and one reverse gear. A torque converter connects the flywheel to the automatic transmission. A torque converter increases torque. It also enables the driver to have the transmission in gear with the engine running slowly while keeping the car from moving by lightly braking. See Transmission.

The drive system carries the engine's power from the transmission to the wheels that move the car. Depending on the automobile, these may be the front wheels, the rear wheels, or both sets of wheels.

In a car with front-wheel drive, the front wheels not only steer the vehicle but also drive it. A front-wheel drive combines the engine, transmission, and differential under the hood. The differential is a set of gears that enables an outside wheel to rotate faster than an inside wheel as the car turns a corner. The outside wheel travels farther when cornering, and so it must rotate faster to cover more ground in the same time. Power from the transmission is transferred through the differential to each front wheel by a short bar called a half shaft. Cars with front-wheel drive can be more compact than those with rear-wheel drive. They also may have less power and cost less to buy and operate. Most passenger cars and vans for private transportation are front-wheel drive vehicles.

Cars with rear-wheel drive have a long drive shaft to transfer power to the back wheels. The differential is attached to the rear axle. Rear-wheel drive provides better weight distribution, front to back, than does front-wheel drive. Better weight distribution improves a car's handling performance. Most pick-up trucks and vans for commercial use have rear-wheel drive, as do many sport utility vehicles (SUV's).

A vehicle with four-wheel drive delivers power to all four wheels. A transfer case distributes the power between the front and rear wheels. Four-wheel drive provides good traction on rough or slippery terrain. Many light trucks and SUV's and some cars come with four-wheel drive. In many vehicles, the driver can switch back and forth between four-wheel drive and two-wheel drive.

Control systems include (1) the steering system and (2) the brake system.

The steering system controls the front wheels. The driver operates it with the steering wheel, which is atop the steering column. Most new cars have a steering system with rack-and-pinion gears. The pinion is a circular gear at the lower end of the steering shaft. The pinion's teeth fit into the teeth of the rack, a flat bar gear. As a driver turns the steering wheel left or right, the pinion forces the rack to move in the opposite direction. The rack turns the wheels in the direction opposite of its own by means of a tie rod connected to each wheel. Many cars have power steering, in which a hydraulic system helps force the rack. A driver can turn the steering wheel far more easily with power steering.

The brake system slows or stops an automobile. Cars have brakes on all four wheels. All autos use disc brakes on the front wheels, and most use drum brakes on the rear wheels. Some cars have four-wheel disc brakes. Hydraulic pressure operates both types of brakes. When a driver steps on the brake pedal, brake fluid goes through brake lines to each wheel. The pressure of the fluid forces a friction material to rub against the discs or drums attached to the moving wheels. The resulting friction slows or stops the wheels.

Cars with power brakes use the difference in pressure between the engine and the surrounding atmosphere to help force the fluid through the brake system. Power brakes make it easier to push the brake pedal, but they do not stop a car any faster than regular brakes. Many cars have an antilock-brake system, which keeps the wheels turning in certain circumstances after the brakes have been applied. The system helps keep a car from skidding and is especially useful on wet roads. A computer controls the antilock system. See Brake.

The support system. The tires, wheels, axles, and suspension system support the weight of a car. In the past, the frame—a rectangular arrangement of heavy steel tubes—formed the bottom of the car and supported the weight of the car's body. Most cars today do not have a separate body and frame. Instead, they are constructed with a unitized body, made of steel panels welded together to form the engine compartment, the passenger compartment, and the trunk. The underbody panels are welded to the body panels.

The suspension system enables the wheels to move up and down with variations in the road surface. It thus helps protect the car body and mechanical parts from the shock of bumps and holes. It also provides better steering control and adds to the comfort of a car's occupants.

Most suspension systems consist of springs and devices called shock absorbers or simply shocks. A spring and shock are attached to each wheel. As a tire hits a bump, the wheel is forced upward and the spring and shock are compressed. As the road levels out again, the spring and shock rebound, which forces the wheel back downward. See Shock absorber.

The electrical system drives the starting and ignition systems, the lighting system, and the comfort and convenience systems. A 12-volt battery stores energy for the starter, which begins the operation of the electrical system by cranking the engine to life. As a car runs, an engine-powered alternating-current generator—better known as an alternator—produces power for the electrical system and recharges the battery. See Battery; Electric generator; Ignition; Starter.

Comfort and convenience systems. Dashboard instruments provide the driver with certain information. A speedometer measures a car's speed, and an odometer records the total distance a car has been driven. A fuel gauge tells how full the gas tank is. Many cars have gauges that record oil pressure, battery voltage, and the temperature of the engine coolant. Other cars have warning lights to alert the driver to problems with oil pressure, battery voltage, and engine temperature.

Virtually all cars come with a heater, which blows air warmed by engine heat into the passenger compartment. Many cars also have an air conditioner, an option that draws on engine power to produce cool air. Other optional devices include audio equipment, power door locks, power windows, and power mirrors. A computer-operated mechanism called cruise control makes it possible for a driver to cruise at a desired set speed without stepping on the gas pedal.

Building an automobile
Most automakers bring out new models every year. But high costs prevent them from making major changes or introducing an entirely new car very often. Manufacturers make mostly minor yearly changes to add features, to meet new standards, to correct problems in earlier models, or to give the car a fresh look and so attract buyers.

Developing a new vehicle—whether it is a major model change or the introduction of an entirely new make—is a task that requires many people, many processes, and many parts. From the initial idea of what the car will be like until the first one is sold takes two to four years. Automakers must therefore try to predict what the market conditions, consumer tastes, and products of their competitors will be several years ahead as they begin designing and developing a new automobile.

Market research typically serves as the first step in developing a new car. Manufacturers survey auto owners and people in the age or income group the vehicle is aimed at to learn their likes and dislikes. They also try to foresee people's concerns in such areas as safety and the environment. Above all, automakers try to forecast the demand for different kinds of vehicles, such as small and large cars, trucks, and minivans.

Designers, engineers, marketing executives, and financial officers study the market research. If a particular market—for example, people wanting small economy cars or large luxury automobiles—appears big enough for profitable production, the firm's top executives may approve the new car program. Such a program may cost hundreds of millions of U.S. dollars—or up to several billion dollars if it requires new assembly and engine plants.

Development of the concept begins after research has identified the market for the vehicle. Automotive designers create exterior colors, interior fabrics, and overall car design. They make hundreds of drawings based on such factors as the potential buyers' tastes, age, and income. The designers may work for the manufacturer or an independent design firm. The design staff chooses the best drawings for review by corporation executives, who make the final selections. Designers enlarge those drawings to full scale. Today, most of the design drawings are created on a computer. This process, called computer-aided design (CAD), enables automotive designers to create, test, and modify their plans all on the computer.

Clay modelers turn the drawings into a concept car—a full-sized model that resembles a real car. They cut and shape the clay with machine tools that use data and instructions obtained from the drawings. The modelers also use hand tools to carve some tricky bends and openings in the car body. They then apply adhesive film to the clay. The film reflects light, which makes the shiny model resemble what the new car will look like in the dealer's showroom. While artists make this model, other specialists create interior models of the car's seats and instrument panel.

The auto industry's rapidly expanding use of computers to simulate physical properties and events is reducing the time it takes to bring a vehicle to market. The industry uses fewer clay models than in the past, and simulation is replacing many, but not all, repetitions of tests, such as wind tunnel tests for aerodynamics.

Workers next build a fiberglass body model based on the clay model and interior models. The fiberglass body model is given real tires, glass windows, doors, and interior and exterior trim. It looks as much like a final production vehicle as possible. After further reviews of the program and management approval, development of the new car begins in full force.

Product engineering. A team of automotive engineers plans, coordinates, and carries out the specifications for the new car and the engineering of every needed part. In addition to the manufacturer's engineers, the team may include engineers from automotive suppliers and from independent engineering firms.

Some parts, such as the engine and transmission, need not be developed for a new vehicle if the automaker has appropriate designs. But many parts are newly created. Everything from steering wheels and road wheels to headlights and taillights must be specified. Computers now handle a large portion of automotive engineering. Engineers rely on computer-aided engineering (CAE) programs to design and draw parts, to combine the parts into components, and to package the components into a car's systems. In CAE, a scanner traces every line and curve on the clay model, gathering information that is stored in the computer. The computer is then used to produce engineering drawings for making dies—the precision tools that shape metals and other materials for the parts and components.

As parts and components are engineered, manufacturers have prototypes of the vehicle assembled to test its design and engineering. The prototypes may look nothing like the final car. American automakers test prototypes on proving grounds in the dry heat of Arizona, the humid heat of Florida, and the cold of northern Canada. The prototypes put on tremendous mileage and may be modified again and again until the manufacturer is satisfied with the quality and cost of the components.

Automakers also use prototypes to test the planned car's endurance and emissions control. The emission-control tests involve running the prototypes 24 hours a day to cover 100,000 miles (160,000 kilometers). The endurance tests may cover twice that distance. Prototypes are further used to check a vehicle's safety. As engineers design the body, computers show how well the car will protect occupants in a crash. But actual cars must be crashed into walls to be sure they meet government standards for impact protection. Prototypes cost hundreds of thousands of dollars. If the prototypes fail the tests, they must be redesigned and reengineered until they pass.

Manufacturing engineering involves developing the production operations and specifying the equipment needed to make and assemble the final vehicle. Prototypes can help manufacturing engineers improve the production process. Assembly of the prototypes often reveals design problems that can be corrected to make assembly of the final car more efficient.

Materials purchasing is the job of buying from suppliers the raw materials, parts, and components needed to build cars. Automakers prepare specifications for steel, rubber, and other raw materials. For parts and components, a manufacturer might provide the supplier with blueprints to make them. Or the manufacturer might specify the function and maximum dimensions and let the supplier do the designing and engineering. Suppliers often include the manufacturer's internal supplier divisions. Internal and outside suppliers bid for the work.

About 50 percent of the value of European cars and up to 75 percent of the value of Japanese cars comes from outside suppliers. For American cars, the value from outside suppliers ranges from 50 percent to 75 percent, depending on the automaker.

Manufacturing involves making parts and components for the new car and assembling them. Today, computers play a big role in a car's manufacture. Companies use enterprise requirements planning programs to schedule the quantities and timing of parts for delivery to their plants. In computer-aided manufacturing (CAM), computers operate machine tools that make various parts and components. They also instruct robots that weld and paint the body and do other tasks in assembling the car.

Manufacturing a car requires different processes to produce different parts. In metal stamping, presses shape metal into forms determined by dies. Small presses stamp out such parts as brackets. Huge presses stamp out trunk lids, floors, roofs, fenders, doors, and hoods. In casting, molten metal is poured into a mold. The engine block is the major part cast. Forging shapes steel or iron into desired forms by hammering. Crankshafts and certain pieces of the suspension may be forged. Machining involves using various tools to cut, grind, and shape precision parts, such as those in engines and transmissions. Several processes are used to shape a car's plastic equipment.

After the parts and components have been made, the car can be put together on the assembly line, which may turn out up to 75 copies of the car per hour. Final assembly includes welding and bolting the body parts together, painting, installing the engine, attaching the interior parts, and adding options. Assembly lines have become more and more computerized, with robots doing many tasks and cameras and lasers performing inspections. But the assembly plant still requires much human labor to make sure all parts and components—and the assembly itself—are of the highest quality.

The automobile industry
The auto industry has become increasingly internationalized. During the early 1920's, the United States made about 90 percent of the world's cars. By the mid-1990's, it made about 20 percent. Yet U.S. output has generally climbed since the 1920's. What has happened is that worldwide production has skyrocketed—from about 10 1/2 million motor vehicles in 1950 to more than 50 million in the late 1990's.

Compact cars and the even smaller subcompacts, as a rule, cost the least to buy and operate. Larger mid-size cars offer greater styling and room. Snappy sports cars and convertibles appeal to many of the young and young at heart. Vans, trucks, and SUV's also serve the lifestyle and personality of certain car buyers today. Luxury automobiles attract wealthy buyers.

People in different countries often have different preferences for automobiles. For example, European drivers are much more likely to drive smaller passenger cars and to prefer manual transmissions than U.S. drivers. United States and Canadian drivers are more likely than Japanese drivers to choose pickup trucks, vans, and SUV's over traditional passenger cars.

Major producing countries and companies. In the value of its products, the automotive industry leads all other manufacturing industries in Japan, the United States, and a number of other countries. Most developed nations produce motor vehicles. Many developing nations also manufacture cars and trucks or assemble them for automakers of other countries. In addition, more than 100 countries make parts and components.

The United States and Japan are the largest motor vehicle producers. Other major producers include France, Germany, and Spain. In general, the largest automaking countries also have the largest markets for cars. The United States has the biggest car market by far. Most countries with a large auto industry and a large car market have a heavy import and export trade in cars. Japan and the United States are the chief exceptions. Japan imports a small share of the cars sold at home, and the United States exports many vehicles to Canada, but only a small portion to other countries.

The largest U.S. automakers are General Motors Corporation and Ford Motor Company. They have thousands of suppliers, including such giant corporations as USX Corporation, General Electric Company, and TRW. Both companies produce, under different trade names, a variety of cars and light trucks designed to meet the needs, preferences, and incomes of different consumers. The two companies, along with a third U.S. manufacturer, Chrysler Corporation, were long known as the Big Three. Chrysler merged with Germany's Daimler-Benz in 1998 to form the international automaker DaimlerChrysler AG.

Japan's major producers include Toyota Motor Corporation, Nissan Motor Company, and Honda Motor Company. Historically, Japanese cars made for use in Japan have tended to be small, fuel efficient, and of limited power. This is because Japan depends completely on imported oil and many of its streets are too narrow and crowded for big cars. For export, Japan produces a range of models to satisfy a variety of buyers.

Many European companies make far fewer vehicles than do Japanese or American firms because they target their output to the smaller luxury and sports car markets. Such European producers include BMW and Porsche of Germany. Other European manufacturers produce millions of cars each year. These major producers include Volkswagen of Germany; Peugeot and Renault of France; and Fiat of Italy.

Some large manufacturing concerns own or control several automobile companies, often in more than one country. For example, Volkswagen owns the luxury car manufacturers Audi of Germany and Rolls Royce of the United Kingdom. Ford owns Jaguar of the United Kingdom and Volvo of Sweden. It also owns a controlling interest in Mazda, a Japanese manufacturer. Renault owns a significant share of Nissan. General Motors owns Saab of Sweden and controls Isuzu and Suzuki of Japan.

Economic importance of the auto industry extends far beyond making motor vehicles. Although this activity provides millions of jobs, supplier industries employ even more people. And still more millions work in such related businesses as service stations, repair shops, and car rental agencies.

Manufacturing jobs in the auto industry generally pay well and offer good benefits. Production workers earn the most money and receive the best benefits in developed countries. But even in developing nations, workers make two or three times more in automotive production than in other manufacturing activities.

The auto industry also aids the economies of many countries by its huge consumption of the output of other industries. For example, the typical passenger car requires about 1,790 pounds (810 kilograms) of steel; 380 pounds (170 kilograms) of iron; 240 pounds (110 kilograms) of plastics; 210 pounds (100 kilograms) of aluminum; and 140 pounds (60 kilograms) of rubber.

Because automobile manufacturing generates and supports a broad range of businesses, it can spur growth in developing countries. Many such nations therefore try to establish an automotive industry. They also hope to export vehicles to earn money with which to buy needed imports. The developing nations of South Korea and Yugoslavia attempted to become major car exporters in the 1980's. South Korea has had much greater success than Yugoslavia. During the mid-1990's, South Korea exported about a third of its car production.

Careers. Rewarding careers can be made in each of the auto industry's three main activities—manufacturing, selling, and servicing.

Manufacturing hires college graduates trained as chemists, engineers, metallurgists, or physicists. Some perform research to develop the materials, processes, and machinery needed to make cars. Others work with artists, designers, and drafters to create new models. The industry also hires college graduates trained in economics, journalism, marketing, statistics, business administration, or industrial management.

Most workers who assemble cars or make parts and components are trained on the job. Some jobs require skilled workers, including machinists, patternmakers, and tool-and-die makers. Such workers may spend four to six years as apprentices, learning on the job and receiving classroom training in mathematics, computer technology, blueprint reading, and mechanical drawing. Some car manufacturers and autoworkers' unions run joint apprentice programs. High school students wanting jobs in automobile trades should take shop, math, and computer courses.

Selling new or used cars for dealers often requires a forceful personality. Experience as a mechanic or in business can be especially useful to jobber salespeople. They sell automobile parts wholesale to garages and car dealers. Companies that make materials or parts for car manufacturers also hire salespeople.

Servicing. Many young people work in garages, gasoline stations, or the service departments of car dealers. Such young people may learn car repair from experienced mechanics. Most workers in dealer service departments receive training in the shop from the automaker's factory service instructors. Some workers become specialty mechanics, experts in repairing certain parts or systems of a car. A car dealer's service department is headed by a service manager, who schedules all repairs and assigns the jobs to mechanics. A parts manager makes sure the service department has enough parts on hand.

Driving safely

Most people find it easy to drive a car. But operating an automobile is a complicated and demanding task—and driving safely is not easy.

Learning to drive. Most automobile accidents involve drivers who violate traffic laws, lack good driving skills, or ignore or are unaware of the rules of safe driving. For that reason, in many countries, a new driver can be granted a license to operate a car only after passing a series of tests, including a road sign test, vision test, road rules test, and driving test. In the United States, most states require a person to be at least 16 years old to be given the privilege of driving. State driver's license bureaus stress that a driver's license is a privilege, not a right. Careless, unsafe drivers who break traffic laws risk losing their licenses.

A qualified instructor provides the best way to learn how to drive. Many teen-agers learn to drive by taking driver education classes in high school. Commercial driving schools also teach beginning drivers. Before learning to drive, a student must obtain a restricted operator's license, also known as a provisional license or learner's permit, to practice driving. Only qualified and experienced adult drivers should accompany a student who is practicing. Classroom instruction and practice driving help students sharpen their driving skills and master the techniques of controlling a moving vehicle. They also learn about the responsibilities involved in driving a car.

Responsibilities of driving. Operating a car involves certain responsibilities to oneself and to others. First of all, a driver must be continuously alert while making a variety of maneuvers, such as speeding up, slowing down, changing lanes, turning, and stopping. At the same time, the driver must be aware of other motor vehicles (including motorcycles), pedestrians, bicyclists, various road signs, and road hazards. Decisions must be made quickly and correctly. Drowsiness or illness slows a driver's ability to react rapidly to changes in traffic conditions. Driving under the influence of alcohol or drugs is especially dangerous.

A good driver concentrates on only one thing while driving—the driving itself. Drivers who become distracted by cellular phone use or by other activities cause many accidents. A good driver also has a proper attitude, which means a willingness to share the road with others. Aggressive behavior—driving too fast, following another vehicle too closely, or rapid lane changes—may cause a driver to lose control of the car or provoke angry reactions in other motorists. Finally, drivers have the responsibility to see that their cars are properly maintained.

Defensive driving means anticipating danger to avoid accidents. A defensive driver stays alert to all possibilities, such as other vehicles slowing down, entering the roadway, or stopping suddenly. A defensive driver adjusts the car's speed and position to suit visibility, the road, and traffic conditions; slows down before entering a curve; yields the right of way; and signals well in advance before turning or changing lanes.

History of the automobile


The first cars. During the late 1700's, the development of steam-powered engines progressed rapidly in Europe. Inventors dreamed of a "horseless carriage"—and steam seemed the obvious power source.

The steam car. Nicolas-Joseph Cugnot, a French military engineer, built the first self-propelled road vehicles in 1769 and 1770. One was designed to carry passengers, while the other was a three-wheeled steam tractor for hauling artillery. In 1801 and 1803, Richard Trevithick of the United Kingdom demonstrated four-wheeled steam-propelled road vehicles to carry passengers. But he lacked the money to continue his work.

Numerous attempts in the United Kingdom to promote the use and development of steam cars failed because of competition from railroad and stagecoach companies. Early steam cars damaged roads and sometimes blew up. They also made a terrible racket, dirtied the air with smoke, and frightened horses. In 1865, the "Red Flag Law" ended further development of automobiles in the United Kingdom for about 30 years. Under the law, a steam car could go no faster than 4 miles (6 kilometers) per hour in the country and 2 miles (3 kilometers) per hour in town. To warn of its approach, a signalman had to walk ahead of the vehicle, swinging a red flag by day and a red lantern by night.

In 1805 in the United States, an inventor named Oliver Evans demonstrated a steam-operated dredge mounted on a boat. He had built it to deepen and clean the Philadelphia waterfront. Evans put wheels on the boat and drove the gigantic machine, which weighed about 20 tons (18 metric tons), through the streets to the harbor and into the water. During the 1860's, another American inventor, Sylvester H. Roper, developed a much smaller steam vehicle. It looked more like a present-day automobile. Roper's vehicle received much public attention.

Many other Americans experimented with steam cars during the late 1800's. They included J. N. Carhart, Richard Dudgeon, and Ransom E. Olds. The number of U.S. companies that made steam cars grew rapidly. One of the most successful firms was founded by identical twin brothers, Francis E. and Freelan O. Stanley. They built the famous Stanley steamer.

Steam cars had big disadvantages. At first, it took too long for the fire to heat the boiler. Inventors solved that problem, but others remained. The steam engines had to be small to be practical for cars, and so they had to be high-pressure engines to produce the required power. However, such engines cost much to build and maintain, and the steam-powered car gradually disappeared. In 1924, the Stanley brothers' company—one of the last steam car manufacturers—went bankrupt.

The electric car. About 1891, William Morrison, an American inventor, built a successful electric car. The six-passenger vehicle was powered by batteries under the seats. Electric cars quickly became popular because they were quiet, easy to operate, and free of smelly fumes. In 1900, they accounted for 38 percent of all U.S. car sales. But the batteries limited how far or fast electric cars could go. Few electrics could travel faster than 20 miles (32 kilometers) per hour, and the batteries had to be recharged at least every 50 miles (80 kilometers). By 1905, only about 7 percent of all cars sold in the United States were electrics. See Electric car.

The gasoline car. The automobile as we know it today resulted from the development of the internal-combustion engine. Jean Joseph Etienne Lenoir, a Belgian living in France, patented the first commercially successful internal-combustion engine in 1860. It burned coke oven gas and was noisy and inefficient. But Lenoir sold several hundred engines, which powered printing presses, lathes, and water pumps. He also installed one in a crude motorcar.

In 1885, Gottlieb Daimler and Karl Benz, two Germans working separately, developed the first successful four-stroke gasoline engines. Their engines led to the development of those used in most cars today. Many European manufacturers turned out cars based on Daimler's and Benz's work and patents. In 1891, a French company, Panhard et Levassor, created the basic design for the automobile that remained largely unchanged for nearly 100 years. The firm placed a Daimler engine in the front of the car and used a revolving chain to transfer power to the rear wheels. In 1898, the French inventor Louis Renault replaced the chain with a drive shaft. Most cars had a front engine and rear-wheel drive until the mid-1980's, when front-wheel drive began to predominate.

A French rubber-making firm, Michelin, introduced the first tires filled with compressed air for use on cars in 1895. Michelin developed such pneumatic tires under license from a British manufacturer of bicycle tires. Many people believe that the automobile became a practical means of transportation because of, first, the invention of the internal-combustion engine and, second, the development of the pneumatic tire.

The birth of the automobile industry occurred in 1885, the year Daimler and Benz built their successful gasoline engines. Until 1900, Europe led the world in automobile development and production. Many present-day European car companies began in the late 1800's. For example, Peugeot, a French firm, started making automobiles in 1890. Another French company, Renault, began producing cars in 1898. Fiat of Italy dates from 1899. France and Germany became the first large production centers.

The Duryea brothers, Charles E. and J. Frank, built the first successful gasoline car in the United States. The Duryea car was completed in 1893 and made its first successful run in 1894. In 1895, the brothers founded the Duryea Motor Wagon Company, the first U.S. firm to make gasoline cars. Many other automaking firms were started in the United States during the industry's early years. Some quickly failed, but others still produce vehicles. The center of the auto industry shifted from Europe to the United States after 1900. Production of American cars increased from fewer than 5,000 in 1900 to more than 1 1/2 million in 1916.

From the beginning, the auto industry had an enormous impact on Western economies. As car production increased, the demand for steel, rubber, glass, machine tools, and other goods essential to the manufacture of the automobile grew and grew. At the same time, the industry began to develop its own supporting divisions for sales, service, and repairs. Employment in the automotive industry soared.

The discovery of huge oil fields in eastern Texas in 1901 helped contribute to the rapid growth of the U.S. auto industry. The discovery caused a sharp drop in the price of gasoline, and plentiful, cheap fuel made cars relatively inexpensive to operate. Another factor aiding the U.S. auto industry was the application of mass-production techniques to the manufacture of automobiles. Prior to 1900, carmakers had used skilled workers to assemble each automobile. But American manufacturers had been using mass-production techniques since the mid-1800's to make such products as firearms and farm equipment, and it was inevitable that they would apply this process to carmaking. Once established, mass production brought the price of U.S. cars down to a level that many people could afford. By the early 1900's, a buyer in the United States could choose among a variety of cars costing less than $1,000, while elegant European models, most of which were still handcrafted, sold for more than $2,000 in U.S. dollars.

Many historians credit the 1901 Oldsmobile with being the first mass-produced car. More than any car before, this automobile was built of parts made by outside suppliers and shipped to the assembly plant. Mass production took a giant step forward in 1904, when Henry M. Leland took charge of the Cadillac Automobile Company in the United States and began building cars using interchangeable parts. Such parts could be used to assemble or repair any car of the same model. Previously, most parts were made to fit only one particular car.

But more than anyone else, the American industrialist Henry Ford perfected the mass production of automobiles. In 1913, Ford installed a moving assembly line in his car factory. The frame of the car was pulled through the plant by a chain. Workers on each side assembled the car by adding parts that had been brought to them on conveyor belts. This process resulted in a huge cut in production time and costs.

The Detroit pioneers. As the U.S. industry developed, the Northern industrial cities of Cleveland, Chicago, and Detroit produced the most cars. Detroit and its surrounding area soon became the Automobile Capital of the World for several reasons. Detroit already had many foundries and machine shops and was a center for making cast-iron stoves and marine engines. Nearby Flint was a major producer of horse-drawn wagons and carriages. Detroit's location on the Detroit River made the city a gateway to ports on the Great Lakes. But Detroit's chief advantage over other production centers was that it had a large number of successful pioneer automakers.

Ransom E. Olds began tinkering with steam and electric engines as a teen-ager. While in his 20's, he built his first vehicle—a three-wheeled steam-powered car. He helped found the Olds Motor Works in Detroit in 1899. In 1901, the firm began to mass-produce its famous curved-dash Oldsmobile, a low-cost gasoline car. The floorboards curved up in front, forming a stylish dashboard.

Henry Ford worked as a machinist and engineer in Detroit when a young man. He built his first successful gasoline car in 1896 and founded the Ford Motor Company, his third company, in 1903. His first company failed, and he simply left the second. Ford introduced his famous Model T in 1908. It sold for $825. Through mass production and low production costs, he was able to cut the car's price repeatedly. The key to Ford's success was his moving assembly line, which tripled production to more than 240,000 Model T's a year. The car's price dropped to its all-time low, $290 in U.S. dollars, in 1924. The Model T outsold all other cars for almost 20 years and truly put America on wheels. People called it, with affection, the Tin Lizzie.

William Crapo Durant became a millionaire by making carriages in Flint. In 1904, he took control of the Buick Motor Company, founded by David Dunbar Buick. Durant made Buick a top automaker by 1908. That year, he organized General Motors Company with the goal of making cars in a broad range of sizes and prices. Over the next two years, the company, called GM for short, acquired many other car companies, including Cadillac and Oldsmobile, plus many supplier firms.

Durant lost control of GM in 1910. Charles W. Nash replaced him as president at Buick, and Walter P. Chrysler became Buick's works manager. In 1911, Durant and Louis Chevrolet formed the Chevrolet Motor Company, whose low-priced car became an immediate success. Durant regained control of GM in 1916. Nash, who had served as GM's president since 1912, resigned and formed the Nash Motor Car Company. Chrysler eventually became vice president of GM. Later, he founded the Chrysler Corporation.

The Dodge brothers, John and Horace, originally produced bicycles. In 1901, they opened a machine shop in Detroit and soon built parts for Olds and Ford. The Dodges amassed a fortune from their business and especially from their purchases of Ford stock. In 1914, they began making their own autos, which were among the first American cars with an all-steel body. Buyers liked the new Dodge—and its price. It cost only slightly more than the Model T.

Technological advances came quickly after the birth of the auto industry and helped make cars safer, more comfortable, and easier to operate. One major development was the introduction of the electric self-starter. Charles F. Kettering, an American engineer, invented it in 1911, and General Motors installed the first ones in its 1912 Cadillacs. The self-starter ended the need to insert a crank into the front of the engine and then turn the crank by hand until the engine started. Hand-cranking was difficult, troublesome, and sometimes dangerous.

In 1914, most U.S. automakers agreed to share use of one another's patents without cost. This system, called cross-licensing, ended in 1956. Since then, the automakers have treated their inventions as private property.

World War I and the Roaring Twenties. World War I (1914-1918) demonstrated the value of motor vehicles for military purposes. In that war, the Allies, who included France, the United Kingdom, and the United States, defeated the Central Powers, who included Germany and Austria-Hungary. In September 1914, German forces advanced on Paris. The French used Paris taxicabs to rush soldiers to the battlefront. In 1916, the Allies saved Verdun, France, from German capture with the help of fresh troops and supplies carried to the front by trucks. Car manufacturers produced large quantities of war goods for the Allies. They made military trucks and tanks, airplane engines, and other military supplies.

People continued to purchase cars for personal use. Automobile production fell for the first time in 1918, reflecting chiefly a shortage of materials. After the war, the industry expanded again.

An economic slump struck the United States in 1920 and 1921. The sagging economy hurt the U.S. auto industry badly and resulted in major shifts in the leadership of the big companies.

Changes at the top. General Motors common stock plunged as car sales dried up. Durant had to leave his post as head of GM for the second time. Alfred P. Sloan became GM's president in 1923. He developed several ideas that the entire industry came to adopt. Sloan sought to stimulate sales by changing model styling each year. The tactic is often described as planned obsolescence—the manufacture of products designed to become outdated sooner than might be expected. However, the purpose has never been to build cars that would necessarily have short lives but rather to improve and restyle each year's models and so encourage customers to buy a new car before the old one has to be replaced. Most of the world's large automakers still follow the practice. Sloan also set up a system of group management in which each GM car division would be independent and responsible for its own operations. Yet the head of GM would still have tight control. Sloan thus established an organizational structure for managing the huge companies that the major automakers became.

Leland left Cadillac in 1917 and founded the Lincoln Motor Car Company. But the economic slump damaged the company so severely that Leland sold it to Henry Ford in 1922. The Ford Motor Company then had a luxury car—the Lincoln—to contrast with its Model T. But sales of the Model T declined in the mid-1920's. The economy boomed after the 1920-1921 slump, and people had extra money to spend on cars. Buyers wanted more than just basic transportation. Other companies, especially GM, built cars that offered comfort, styling, and speed at reasonable prices. Henry Ford stopped making the Model T in 1927. He introduced the Model A in late 1927. In 1928, it became the top-selling car.

Chrysler retired from General Motors as a millionaire in 1919. In 1921, he became president of Maxwell Motor Corporation and breathed life into the ailing firm. He introduced a new car, which he called the Chrysler, in 1924. It was an immediate success. Chrysler renamed the company the Chrysler Corporation. He bought the Dodge Company in 1928 and introduced two new makes—the De Soto and the Plymouth—in 1928.

The rise of the Big Three. During the 1920's, the large manufacturers cut their profits on each car to step up their sales. Soon, only companies that could make and sell many cars quickly could stay in business. The number of U.S. automakers dropped sharply—from 108 in 1923 to 44 by 1927. Throughout the decade, the Big Three—Ford, General Motors, and Chrysler—produced most American cars. During this same period, these companies also set up factories in Australia, the United Kingdom, and other countries. Small companies, such as Rolls-Royce in the United Kingdom and Packard in the United States, built luxury cars with smart styles and elegant features. These cars became known as classic cars.

The new economic giant. The auto industry became a pillar of the U.S. economy in the 1920's. Automobile production climbed from almost 2 million vehicles in 1919 to more than 5 million in 1929. The value of its output exceeded that of any other industry. Furthermore, it had become basic to the well-being of industries that produced the basic materials and tools needed to manufacture automobiles. The establishment of thousands of repair shops, filling stations, restaurants, and lodging places to serve the millions of American motorists further stimulated the economy.

The increasing automobile output reflected the good times of the 1920's. Americans eagerly spent money on new cars. In addition, dealers and manufacturers encouraged people to trade in their old car for a new model or to trade up to a better car. Those who lacked cash could buy on credit.

The hard times of the 1930's. The auto industry suffered severely during the Great Depression, which began in October 1929. In the United States, production of all vehicles fell 36 percent in 1930 and 29 percent more in 1931. In 1932, output plunged an additional 44 percent to about 1,300,000 vehicles, the lowest volume since the war year of 1918.

Because of plant closings and lowered production, autoworkers were periodically jobless during the Depression. Ford and Chrysler lost money, but GM made a profit throughout the 1930's. By the end of the decade, the Big Three controlled over 85 percent of the car market. Many firms had gone bankrupt. Others had shifted to truck production and managed to survive.

World War II and the postwar years. Automobile manufacture in Europe was halted in 1939 by the outbreak of World War II (1939-1945). In this war, the Allies, who included Canada, the Soviet Union, and the United Kingdom, defeated the Axis powers, who included Germany and Japan. The United States entered the war on the side of the Allies in December 1941. In several countries, the automakers turned their production capacity to making war equipment. This equipment included not only military trucks, jeeps, and personnel carriers, but also tanks, aircraft and aircraft engines, ammunition, artillery, and marine engines.

Great changes occurred in the auto industry between the start of World War I and the end of World War II. There were far fewer manufacturers, but they could produce far more cars. Competition changed from simple mass production to broad marketing programs involving market research, product development, distribution, advertising, and publicity. Most of the industry giants had retired or died, and the companies tended to be run by corporate organization.

After the war, the auto industry resumed civilian production. The return of former servicemen and women, the enormous growth of the suburbs, and the unsatisfied demand for cars during the war all created a huge market for automakers. In 1949, the industry set a new production record for the first time since 1929. It set another record in 1950. During the 1950's, performance and styling became keys to selling. American cars and European luxury vehicles became longer, wider, and lower. Cheaper European cars grew shorter and narrower. Automatic transmission became available in low-priced cars. Engine power operated air conditioning, brakes, seats, steering, and the tops of convertibles.

The Big Three continued to control U.S. auto manufacturing. Several companies tried to enter the industry in the postwar years, but all failed by 1955. In 1954, two independent automakers, Hudson Motor Car Company and Nash-Kelvinator Corporation, formed American Motors Corporation (AMC). George W. Romney, head of AMC, strongly promoted the Rambler, the first successful small, or compact, U.S. car. In 1957, Ford brought out the Edsel. The company's market research had indicated high demand for a relatively expensive model. But during the time it took to bring the Edsel into production, economic conditions and public taste changed. The vehicle was a financial failure.

By the late 1950's, imports—especially the West German Volkswagen Beetle—began to take a growing share of the U.S. market. Imports reached 10 percent in 1959. Sales of imports and of AMC's Ramblers persuaded the Big Three to enter the small-car market. In 1959, Ford brought out its compact Falcon, Chevrolet its Corvair, and Chrysler its Valiant. All the compacts sold fairly well.

By 1960, 77 percent of all U.S. families owned a car, and 15 percent owned two or more. Roads and highways began to look the same everywhere, bordered by motels, fast-food restaurants, filling stations, and shopping centers. About 10,000 miles (16,000 kilometers) of interstate expressways were in use. More than ever, the United States was a nation on wheels. In 1964, Ford introduced the Mustang, a smaller, sportier car than most compacts. Car buyers loved the Mustang at first sight.

The growth of government regulation. In 1965, an American lawyer named Ralph Nader wrote Unsafe at Any Speed. The book attacked Chevrolet's Corvair in particular and the auto industry in general for emphasizing profits and style over safety. Corvair sales plunged, and Chevrolet stopped producing the car in 1969.

The U.S. auto industry had operated largely free of government regulation. The situation changed in the 1960's, partly because criticism of the automobile had increased, especially after Nader's book appeared.

The United States was the first country to pass laws intended to lower pollution from cars. In 1965, the U.S. Congress passed the Motor Vehicle Air Pollution and Control Act, which amended the Clean Air Act of 1963. The new law ordered automakers to reduce the pollution produced by new cars. The Big Three complied by modifying the engine. The Clean Air Act of 1970 called for 90 percent reductions in tail pipe pollution. Automakers met this standard through engine improvements, the use of catalytic converters, and the change from gasoline containing the chemical tetraethyl lead to unleaded gasoline. Some countries still allow the use of gasoline with this additive. The Clean Air Act Amendment of 1990 required tail pipe pollution to be reduced by another 7 to 8 percent by 1997.

The 1966 National Traffic and Motor Vehicle Safety Act ordered certain changes to promote automobile safety. Car buyers' favorable response to the changes led automakers to provide safety measures that went beyond the law's requirements.

The rise of international automaking. During the 1960's, the auto industries of France, Italy, Spain, Sweden, and West Germany prospered. The Soviet Union and Italy agreed to produce Italian Fiat cars in the U.S.S.R. The Australian auto industry thrived, and Argentina and Brazil expanded production. Japan, however, made the most dramatic progress. Japanese production skyrocketed from about 50,000 cars in 1958 to more than 2 million by 1968.

A worldwide petroleum shortage during the 1970's resulted in high gasoline prices and long lines at filling stations. Many families with large automobiles switched to smaller, lightweight cars that were more fuel-efficient. In the United States, imported cars became popular because of their reputation for fuel efficiency. By 1980, imports had captured more than 25 percent of the U.S. market, and Japanese cars accounted for more than 80 percent of those sales.

During the middle and late 1900's, American automakers preferred to build plants abroad rather than export their cars. Exports of U.S. autos thus generally remained low. More than half of the cars American automakers exported went to Canada. In 1965, the United States and Canada agreed to the free movement of vehicles and parts between them. Thus, American automakers could closely adjust production at their many Canadian plants with operations at home.

American automakers began to sell imported cars themselves in the 1970's. Chrysler marketed cars made by the Japanese firm of Mitsubishi. Ford and General Motors retailed pickup trucks made by Japan's Toyo-Kogyo (now Mazda) and Isuzu, respectively. In 1978, Volkswagen began making cars in Pennsylvania. It became the first foreign automaker to produce vehicles in the United States since American Rolls-Royce of the United Kingdom closed its Massachusetts plant in 1931.

Challenges to the Big Three. The oil shortage led the U.S. Congress to pass a law in 1975 requiring manufacturers to make cars more fuel efficient. The 1974 cars averaged 14 miles per gallon (6 kilometers per liter) of gasoline. Under the new law, the 1985 models had to average 271/2 miles per gallon (11.7 kilometers per liter). The Big Three met the requirements by building lighter cars with smaller engines and by making mechanical improvements. Congress demanded even greater fuel efficiency in the 1990's.

The switch in consumer preference from large cars to small ones helped Japan surpass the United States as the world's largest automaker for the first time in 1980. The shiploads of imported cars pouring into the United States stunned the Big Three. The price of a new car rose sharply during the early 1980's. As a result, people kept their old cars longer before buying a new one.

Chrysler, in deep financial trouble, needed $1 1/2 billion in government-guaranteed private loans to survive. Lee Iacocca, head of Chrysler, turned the company around. Chrysler received the loans in 1980 and repaid them within three years. In 1984, Chrysler introduced a line of minivans that achieved huge success in the marketplace. In 1987, the company bought American Motors, which the French automaker Renault had largely controlled since 1977.

In 1981, the U.S. and Japanese governments placed voluntary restrictions on the export of Japanese cars to the United States. The restrictions encouraged Japanese carmakers to produce vehicles in the United States themselves. By the late 1990's, several Japanese manufacturers had assembly plants in the United States.

Light trucks and sturdy SUV's became increasingly popular in the United States. In the 1990's, U.S. production of such vehicles surpassed that of passenger cars.

The automobile today. About 450 million passenger cars travel the streets and roads of the world. Most cars are in the United States, Japan, Canada, and the countries of Western Europe. Many people of these nations consider a car a necessity. In most countries of Africa, Asia, Eastern Europe, and South America, the car is still regarded as a luxury by the great majority of the people.

The widespread use of the automobile has resulted in a number of challenges. Gasoline, the fuel that powers the engines of almost all cars, is a petroleum product. But most countries do not have a sufficient supply of oil to meet their energy needs. Also, cars give off harmful fumes that pollute the air. In addition, traffic accidents cause thousands of deaths and injuries each year.

Automakers and governments spend large sums of money seeking ways to reduce the hazards of driving. In the United States, the National Highway Traffic Safety Administration sets safety standards for new cars. To meet U.S. federal standards, car manufacturers must equip new cars with such safety features as safety belts, air bags, and shatterproof windows. Other required equipment includes a collapsible steering column and bumpers that can absorb the impact of collisions. Most other nations have strong safety regulations but require less safety equipment to be built into automobiles.

The United States imports far more goods than it exports. The U.S. auto industry accounts for much of the trade deficit because it exports relatively little, and yet the United States is the world's largest importer of cars. A large portion of the deficit results from trade with Japan, reflecting the many Japanese cars Americans buy and the parts imported for Japanese auto plants in the United States.

Cars of tomorrow will probably be increasingly fuel efficient and less polluting. Internal combustion engines will probably still power most automobiles. But worries about pollution will likely increase the use of vehicles that use alternative fuels, despite their limited range and speed. Delivery services and other commercial fleets in large cities will probably use such vehicles. Hybrids, vehicles that have all the components of electric cars plus another power source, may serve as a compromise between electrics and traditional automobiles. Fuel cells, devices that convert chemical energy to electrical energy, may be used in hybrids.

Computerized controls will do more and more tasks in tomorrow's cars because of their low cost and precise functioning. With the flick of a switch, computerized suspension systems will adjust to changes in the road surface. Computers will also play an increasing role in creating tomorrow's cars, from the designing to the engineering to the assembling. The selling and servicing of cars will also be more and more computerized.

Many modern automobiles include an on-board navigation system. This electronic device uses a network of satellites called the Global Positioning System to locate a driver's vehicle. It can then display a map showing the best route to reach a specific destination selected by the driver.

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Contributors:
• David J. Andrea, M.B.A., Chief Economist, CSM Worldwide.
• Michael S. Flynn, Ph.D., Associate Director, Office for the Study of Automotive Transportation, University of Michigan Transportation Research Institute.


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