The ‘Big Three’

Q: Greg, how many car companies were there in the early days of American auto manufacturing, and how did we end up with the “Big Three?” — Glenn from Kansas

A: From 1900-1919, nearly 2,000 American companies were involved in the separate construction of motor vehicles. Henry Ford receives credit for the first mass-produced car in 1908 (the Model T), but many don’t know that Ford relied on the Model T until 1927, and actually shut down his plant several times to re-tool for the Model A. Through it all, the competition caught up to Ford’s brilliantly produced automobiles.

Meanwhile, smaller companies were folding while the larger concerns forged ahead. General Motors, founded in 1908, became a giant as it utilized even better production methods than Ford. The third powerhouse, Maxwell, continued its climb and became Chrysler Corp. in 1925. Chrysler then bought Dodge in 1928.

The number of U.S. car companies in 1920 had shrunk to 98, and by 1930 was down to 44. By the beginning of the 1940s, Chrysler, Ford and General Motors accounted for 90 percent of all U.S. car sales. By 1976, only 11 car companies were left. Chrysler gobbled up American Motors in 1987, acquiring the popular Jeep line as the trump card, leaving us with the final “Big Three” of GM, Ford and Chrysler.