Milestones in the Auto Industry

The past couple of years have been very tough ones for the US auto industry, culminating in the somewhat embarrassing request for a life-saving bailout in late 2008. Tough times are not new to U.S. automakers, who've seen their reputation and market share decline sharply in the past four decades. Amid the doom and gloom, however, has been a boom or two. Take a look at some of the milestones in the auto industry since the 1970s.

Photo: AP In 1973 and 1979 OPEC cut off supply of oil to the United States, creating an oil shortage that caused long lines at gas stations. At the same time, Japanese automakers like Toyota, Nissan and Honda started to gain popularity with American consumers, who were looking for smaller, fuel-efficient cars. U.S. automakers responded to the competition by building smaller vehicles.

Photo: AP In 1979, Chrysler reported a $1.1 billion loss, forcing the company’s CEO Lee Iacocca to ask for a bailout from Congress. In 1980, the Chrysler Loan Guarantee Act was passed, giving the company $1.5 billion in loans to prevent a bankruptcy protection filing. Iacocca rebuilt the company, and repaid the loans.

Photo: AP Honda became the first Japanese company to build a car in the U.S. when it opened its Marysville, Ohio factory in 1982. Hosting Japanese and later German auto plants would become a highly competitive endeavor for states looking to generate new, high-paying jobs.

Photo: AP The Ford Taurus became America’s top selling car in 1992, displacing the Honda Accord. The car had mass-appeal and was also a great fleet car, says Jesse Toprak, chief auto analyst at Edmonds.com. At the same time, he says the Taurus is a telling example of "how an automaker can dilute a brand." The Toyota Camry replaced the Taurus as the best selling car in 1997. Ford is introducing a new model.

Photo: AP In 1998, the German automaker bought Chrysler, forming DaimlerChrysler. Daimler-Benz eventually sold Chrysler in May 2007 to Cerberus Capital Management for $7.4 billion, making Chrysler the first of the Big Three to be privately owned.

Photo: AP In the late 1990’s and early 2000’s, sales of sports utility vehicles helped revitalize the U.S. automobile industry. "They don’t cost that much more to make,” explains Toprak of Edmonds.com, but the automakers charged much more for them. It was widely reported that automakers made about $10,000 per unit on a SUV or truck, compared with breaking even on a compact car. The Chevy Suburban (pictured above) was the “symbol of the love affair with SUVs," says Toprak. So was the Ford Explorer.

Photo: AP At the same time that SUV sales surged, so did those for light trucks. “It became fashionable to own a large truck even though you may not have a use for it,” said Toprak. The Ford F-150 (pictured here) is one of the best-selling vehicles of all time.

Photo: AP Toyota announces on May 2008 that sales of the Prius, the first mass-produced hybrid vehicle, surpassed the one million mark, coinciding with record gasoline prices in the US.

Photo: AP In December 2008, President George Bush approved $17.4 billion in rescue loans for General Motors and Chrysler. Ford said at the time that it didn't need the funds, but added that it would be badly hurt if one or both of its competitors failed.