Q: Greg, how many car companies were there in the early days of American auto manufacturing and how did we end with the "Big Three?" Glenn from Kansas.
A: Glenn, from 1900 to 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), something I believe most Americans are aware of. But many don't know that Ford relied on the Model T until 1927, and actually shut his plant down several times to re-tool for the Model A. Through it all, the competition caught up to Ford's brilliantly produced automobiles, but never actually surpassed Ford in both uniqueness and marketing.
Meanwhile, smaller companies were folding while the larger concerns forged ahead to become industry leaders. 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 Corporation in 1925. Chrysler then purchased Dodge in 1928.
Count wise, the overall number of U.S. car companies in 1920 shrunk to 98, and by 1930, fell all the way down to 44. By the beginning of the 1940 decade, Chrysler, Ford and General Motors accounted for 90-percent of all U.S. car sales, the rest divided between Packard, Hudson, Nash, Rambler, Studebaker and Willys-Overland. This held steady through the late Forties and early Fifties, with an additional two builders, namely, Tucker and Kaiser-Frazer, joining the fray. (Nash, Hudson and Rambler merged years later to become American Motors, with Studebaker and Packard joining forces and lasting until 1963).
By 1976, only 11 car companies were left, with many consolidating their businesses. Check, the famous Taxi cab of the era, hung on until July of 1982 as one of the last independent car companies, even though it depended on Chevrolet engines and transmission its final years. 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.