economics 190 290 lecture 6 transportation a look at the auto industry early history of automobile manufacturing it did not start in detroit first company duryea motor wagon springfield ma 1895 fragmented characterized by massive small scale production as many 3 000 firms organized to produce autos more than half these clustered northeast most never entered into commercial like internet boom 1990s frequent mergers divestitures entry and exit 1903 three leading producers located michigan olds 4 cars ford 1 700 cadillac 1904 census revealed be center for 42 all up 51 5 years later why southeastern was already machine shops specializing gasoline engines which quickly became dominant engine 1900 40 powered steam 38 electricity only 22 but this soon changed gas improved pioneers ransom henry were machinists also
