American Automobile Industry

• The Great Depression and World War II
The 1930s saw the demise of many auto makers due to the economic effects of the Great Depression, stiff competition from the Big Three, and/or mismanagement. Luxury carmakers were particularly affected by the economy, with companies like Stutz Motor Car Company, Pierce-Arrow Motor Car Company, and the Marmon Motor Car Company going out of business. The decade also saw several companies with innovative engineering, such as the Doble Steam Motors Corporation (advanced steam engines) and Franklin Automobile Company (air-cooled aluminum engines) going out of business. Errett Lobban Cord, who controlled the Auburn Automobile Company (which also sold the Cord) and the Duesenberg Motor Company, was under investigation by the Securities and Exchange Commission and the Internal Revenue Service. His auto empire collapsed in 1937 and production ceased.
Major technological innovations were introduced or were adopted widely during the 1930s, such as synchromesh manual transmissions, semi-automatic transmissions, automatic transmissions, hydraulic brakes, independent front suspension, and overhead-valve engines. The Cord 810 used front-wheel drive, had hidden headlights, and was offered with a supercharger. Exterior styling designs were more flowing, as shown most noticeably on the Auburn Speedster and the Cord 810. Radical air-streamed design was introduced on the Chrysler Airflow, a sales flop, and the Lincoln Zephyr (both of which used unit-body construction).
When the U.S. entered World War II, domestic passenger automobile production ceased and factories were converted to produce war materiel such as armaments, aircraft and military vehicles. These factories produced an astonishing amount of materiel, including 5.9 million weapons, 2.8 million tanks and trucks, and 27,000 aircraft. This production was a major factor in the victory of the allies.