Brimming with epic successes and spectacular failures, the early history of the motor car industry offers clues about its future, too. As so often during technological revolutions, initial bursts of fast and furious experimentation by wild-eyed pioneers are followed by waves of industry consolidation by more sober corporate types.
So it was in the US from the 1890s, when scores of obsessive entrepreneurs launched the modern auto industry. Over the next few decades they founded hundreds of companies manufacturing thousands of different models. In the words of one historian, these dedicated enthusiasts competed in a “drastically Darwinian” world and seemed to prefer “to go broke making automobiles than get rich doing anything else”, a tune which resonates again today.
But the development of capital-intensive mass manufacturing methods, the Great Depression and the second world war thinned out the competition. By 1950, the industry was dominated by just three giant corporations: General Motors, Ford and Chrysler, which between them accounted for about three-quarters of global production.