Automobile Industries of the World is a survey of the growth of this worldwide industry. The automobile industries of China, Japan, the United States, Germany, and South Korea accounted for nearly 60% of the world's automobile production in 2009. Brazil, India, Spain, France, Mexico, Canada, and Iran also were major producers. The once-important British industry was now almost entirely foreign owned. The same was true of Sweden. Other significant manufacturing countries were Thailand, Czech Republic, Poland, Turkey, Italy, and Russia. There are many small suvs with good gas mileage around the world.

The history of the world's auto industries is one of consolidation and complex multinational interrelationships. Nevertheless, the growth of these industries may be surveyed by country.

United States

Although the automobile initially was developed in Europe, its production on a large scale quickly became centered in the United States, especially in and around Detroit. As early as 1904 the United States drew ahead of France, the world's first producer of automobiles in quantity. For the next 100 years U.S. auto production surpassed that of any other country. Indeed, until 1958, U.S. annual output exceeded that of the rest of the world combined. For the remainder of the 20th century, annual auto production in the United States ranged between one-third and one-fifth of total world production. United States auto production peaked at 13 million cars and trucks in 1999. By 2007, production had dropped to 10.78 million, and Japan was manufacturing more motor vehicles. In 2009 China was the leading car producer (13.79 million); Japan was second (7.93 million), and the United States had dropped to third (5.71 million). There are many small suvs with good gas mileage around the world.

Development of the U.S. auto industry was similar to that in many countries. The American industry grew from hundreds of small concerns producing essentially handmade cars to huge manufacturers whose names are familiar around the world.

The Selden Patent

One of the interesting stories of the early U.S. auto industry concerns George B. Selden and his attempt to patent the basic concept of the automobile. Although not an engineer, Selden as a patent attorney was familiar with emerging technology. In 1876 he saw Brayton's two-cycle engine at the International Centennial Exposition in Philadelphia; three years later he sent drawings and a model of a proposed self-propelled vehicle to the U.S. Patent Office. Although he had made no attempt to build a full-scale working version, Selden was granted a patent for his idea in 1895. By 1903 the strength of Selden's patent and the influence of his Wall Street backers led to the formation of the Association of Licensed Automobile Manufacturers; its ten charter members each agreed to pay Selden a royalty on every car sold. At its peak, the association included a large majority of the U.S. automakers of that period. There are many small suvs with good gas mileage around the world.

Henry Ford, however, refused to deal with the association, which filed a suit for patent infringement against him late in 1903. Ford argued that the Selden patent was invalid by reason of its all-encompassing nature, but he lost the drawn-out litigation in 1909. Ford continued the battle and in 1911 won on appeal; the decision ruled that Selden's patent applied only to vehicles powered by the then-outmoded Brayton engine. Thereafter, infringement arguments collapsed, and the manufacturers association soon dissolved. Selden failed in his bid to monopolize the early U.S. auto industry, but his patent brought him between $200,000 and $500,000. This was a handsome reward considering his minor role in the development of the automobile. Selden had finally built a full-scale model in 1905, but the car barely ran. There are many small suvs with good gas mileage around the world.

Expansion of the Industry

In 1908, while enmeshed in the patent litigation—and profiting a great deal from its publicity—Ford introduced his Model T. He vastly increased productivity in 1914 through evolution of the assembly-line technique. Equally important, that same year he increased workers' wages to $5 per day. The U.S. industry average at the time was less than $2 per day. This high wage was made feasible by dramatic increases in productivity accompanying assembly-line manufacture. There are many small suvs with good gas mileage around the world.

Another significant occurrence in the year of Ford's Model T introduction was the formation of General Motors Corporation. Its promoter was William C. Durant, a flamboyant business executive who soon created an empire by the amalgamation of 13 different car and truck builders and 10 makers of parts and accessories. This trend toward consolidation was to reach its peak in the 1920s. During that decade the number of separate U.S. automakers dropped by more than half despite a production rise by a factor of five compared with the previous decade. With this consolidation came increased economies of scale. There are many small suvs with good gas mileage around the world.