Given the confusion, I’ve chosen to skip forward and start this history lesson with the undisputed father of the modern automobile. You should recognize his last name – Karl Benz. He was the first man to create an automobile that constituted at least a framework of what we have today. It was a four cylinder, internal combustion engine on a movable vehicle. It actually worked and he was soon selling them under the name Benz & Cie. The car was licensed to manufacturers around the world and was particularly popular in France. The company, of course, would ultimately become Mercedes Benz.
Although Benz is the father of modern automobiles, he is not the father of CHEAP versions. That title goes to none other than Henry Ford. His ideas helped the automobile evolve from something only the rich could afford to a machine everyone could. It was all about large scale, production line manufacturing. This allowed for the production of far more vehicles at far cheaper prices. It is still the method used to this very day by every auto manufacturer producing significant numbers of cars in the world today. This approach also, of course, created the Ford Motor Company and turned it into a world leader.
The next major development in the history of the automobile occurred in the early 1970s. Two events occurred that are still impacting us today. The production of oil in the United States “peaked”. This means we reached our maximum oil production level and have been dropping ever since then. The second thing that occurred was Saudi Arabia created an oil embargo due to its unhappiness with U.S. policy in the Middle East. These two events combined to create the first gas shortages. This resulted in many political issues, but also a major development in automobiles.
Gas mileage became a big issue for the first time ever. Americans started buying compact cars supplied by Japanese automakers Honda and Toyota at staggering rates. These cars were cheap, reliable and had good gas mileage. American cars were still big, unreliable and got terrible gas mileage. This started a fundamental shift in both the buying habits and views of consumers regarding the vehicles they drove. American automakers would make a comeback, but the bankruptcy of Chrysler and expected bankruptcy of General Motors speaks volumes of the shift.
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