Importance Of Automobile Industry

2.1 Importance of Automotive Industry ‘Starting in the late 1700 's, European engineers began tinkering with motor powered vehicles. Steam, combustion, and electrical motors had all been attempted by the mid 1800 's. By the 1900 's, it was uncertain which type of engine would power the automobile. Automotive production on a commercial scale started in France in 1890. Commercial production in the United States began at the beginning of the 1900 's and was equal to that of Europe 's. From 1904 to 1908, 241 automobile-manufacturing firms went into business in the United States. One of these was the Ford Motor Company which produced 1,700 cars during its first full year of business. Henry Ford produced the Model T to be an economical car for the average American. By 1920 Ford sold over a million cars. At the beginning of the century the automobile entered the transportation market as a toy for the rich. However, it became increasingly popular among the general population because it gave travelers the freedom to travel when they wanted to and where they wanted. As a result, in North America and Europe the automobile became cheaper and more accessible to the middle class. Popularity of the automobile has consistently moved with the state of the economy, growing during the boom period after World War I and dropping abruptly during the Great Depression, when unemployment was high. During the war, automobile motors, fuel, and tires were in short supply. There was an