Industry Overview - Automobile Industry

Essay by ehayesUniversity, Bachelor'sA+, August 2006

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Today, not many people can remember what life was like not have an automobile. Before the era of automobiles there were horse-drawn carriages and horses that provided people their only means of transportation. The invention of the automobile has been one of the most significant inventions of the 21st century. The mass production of the automobile has changed the way people live and work in a modern society. Before the invention of the automobile, people lived and worked in a small radius of their house. Now, many people can explore parts of the country within hours that without the automobile would have taken days to accomplish. The automobile industry has been an instrument to help develop other industries, such as steel. The automobile industry is changed by economic factors such as retail sales, Standard and Poors, and M-2 money supply as well as other key indicators. The automobile industry has become one of the few industries that have their own economy that drives many others.


The history of the automobile began back in the 1800's in Europe and continued growing into American manufacturers that in turn started the mass production of the automobiles. After World War I, the United States became a renewal of economic growth, from new inventions to growth of an expanding road infrastructure. This economic growth helped accelerate the need for the automobile. The automobile industry grew quickly because of many innovative inventions. In the 1950's innovation was getting greater speed through the design of more powerful engines. In the 1960's innovation was building a sleek but performance driven auto. In the 1970's, the automobile and gas shortage led many automakers to look for innovative ways to control emission and decrease gas consumption. The convergence of computer and auto industries helped improve gas mileage and...