Don’t Curse Traffic; Autos Helped Create Our Thriving Consumer-Based Economy

By 1929, more than half of all American families had a car. This 1929 Ford Model A realized $42,500 at an October 2013 auction.

By Jim O’Neal

Automobiles have been around for a long time. Henry Ford built his first one in 1893 and his first Model T was completed in 1908. In 1920, there were already 8 million horseless carriages sputtering and rattling around the poorly charted “roads” of the American countryside, most of them Tin Lizzies purchased for the remarkably low price of $300.

But in the succeeding years of that decade, the mass rush to the automobile began to have its impact. By 1929, more than half of all American families had a car; by 1930, there were more cars on the streets of New York City than on the entire European continent.

The change was sudden and dramatic. The automobile was the first significant improvement in self-guided travel since the bicycle was introduced in Scotland in 1839 and had caused a similarly dramatic effect on the 19th century.

The burgeoning automobile age established a new sense of freedom and individuality; people no longer had to make their plans according to train schedules and they traveled by themselves instead of with hundreds of strangers. At the same time, it also established a new, wider sense of community. Small towns that existed miles from anywhere else were now connected to each other by roads, giving large groups of people access to first-rate medical care, higher quality education, and whatever else lay “down the road.”

Thanks to the car, thousands of suburban communities flourished, providing people with the luxury of homes surrounded by real grass, despite having to commute longer distances to their jobs in the city. This even led to tourism helping blend discrete regions and meld society together. Spurred on by demanding auto owners, building roads became a prime activity of government, second only to education.

And with each mile of road came something new.

The first motel in 1925 in San Luis Obispo, Calif. The first set of red lights in NYC (1922). The first shopping center in Kansas City in 1922. The first national road atlas (Rand McNally, 1924). The first public parking garage in 1929 in Detroit.

One out of eight people who owned cars actually worked in the industry, building them or producing the required tires, oil and steel. It led to the eight-hour workday, the five-day workweek and safer working conditions. It even changed how people thought about money and credit. Buying a car was a real debt and by the end of the 1920s, more than 60 percent of all sewing machines, vacuum cleaners and refrigerators were bought on purchase plans, and one-third of all furniture, including radios!

A consumer-based economy would be a powerful force and today represents 70 percent of our total economic output.

So the next time you’re stuck in a traffic jam or cursing about too many potholes, consider the alternative and the rich history that is included.

Jim O'NielIntelligent Collector blogger JIM O’NEAL is an avid collector and history buff. He is President and CEO of Frito-Lay International [retired] and earlier served as Chairman and CEO of PepsiCo Restaurants International [KFC Pizza Hut and Taco Bell].

Chevrolet Brothers Never Benefited from Company’s Enduring Success

Original ad illustrations, like this piece for Chevrolet titled “Car Passing a Buggy,” 1925, by Lawrence L. Wilbur, are popular with collectors.

By Jim O’Neal

One of the most recognizable emblems is owned by Chevrolet. It was quickly called the “bowtie” for its unique design, but the origin of the company, its name and invaluable trademark is a complicated story not well known.

The Chevrolet family had their beginning in Switzerland, where the father was a watchmaker. This is where the highly accomplished mechanic, designer and racing driver, Louis-Joseph Chevrolet, was born on Christmas Day 1878. In 1887, the family moved to France, where Louis’ brothers Gaston and Arthur were born.

Chevrolet first used its “bowtie” emblem in 1913.

The brothers became obsessed with bicycle racing, a first-tier sport in France. One story is that American playboy-sportsman Willie Vanderbilt encouraged them to move to America where their skills would be more appreciated ($$). Louis went first and was soon followed by Gaston and Arthur, who joined Louis to work on French cars, fixing flats and eventually becoming factory racecar drivers for Buick.

Enter William C. Durant, who was busy buying car companies to add to the General Motors portfolio. According to one biography, he had an agreement to buy Ford, but only if Henry kept the rights for motorized farm equipment (Henry was spooked by a patent suit claiming invention of the automobile). Fortunately for Ford, the banks would not provide financing – “The industry is too risky” – and he went on to become a giant in the car industry instead of farm equipment.

After a financial panic in 1910, the GM board ousted Durant, at least for a while.

So Durant convinced Louis Chevrolet to found a new car company, the Chevrolet Motor Car Company, but they parted ways when Durant added a cheaper version that Louis thought was demeaning. Louis proceeded to sell his stock and, in an all-time blunder, left his name with the company and decided to focus on racing again.

He managed to finish 7th in the 1919 Indy 500, but it was Gaston who turned out to be a phenomenally good race driver. When Gaston finished first in 1920, he became the first driver in the history of the race to go the full distance without making a tire change. However, his fame was short-lived. Six months later, at age 28, in November 1920, he died in a fiery crash with Eddie O’Donnell at the Beverly Hills speedway in a race for the “Speed King of the Year.”

Gaston’s death resulted in the brothers leaving racing, although Louis continued to design engines for Ford. The Indianapolis Motor Speedway Hall of Fame Museum features a memorial dedicated to the many accomplishments of Louis-Joseph Chevrolet. Fittingly, he was inducted into all four major automotive Hall of Fames.

Durant eventually used his stock in Chevrolet to buy General Motors again and the Chevrolet brand is still alive, although none of the Chevrolets benefited from its long enduring success.

Jim O'NielIntelligent Collector blogger JIM O’NEAL is an avid collector and history buff. He is President and CEO of Frito-Lay International [retired] and earlier served as Chairman and CEO of PepsiCo Restaurants International [KFC Pizza Hut and Taco Bell].