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Automatic Cars – Past, Present and Future

Read our history of automatic cars and find out about the development and future of the automatic transmission as we move towards the 2030s. In the UK, manual transmission cars – cars with a gearstick – have traditionally been more popular than automatic transmission cars. That said, things are now changing. With the increase in popularity of clutch-less electric vehicles has come an increase in popularity of automatic vehicles in general.
In 2024, out of 300 car models available in the UK, only 89 were manual according to gbcarleasing. That’s 18% fewer than in 2023. At that rate of decline, the manual gearbox will be a thing of the past by 2029.
THE PAST - A Brief History of Automatic Transmissions
The First Automatic Transmissions
The first automatic transmission was created in 1921 in Canada by steam engineer, Alfred Horner Munro. He designed his invention to use compressed air rather than hydraulic fluid so had little power and as a result was not commercially viable enough to be taken to market. The first automatic transmission using hydraulic fluid was developed by General Motors in the 1930’s, and they brought in the “Hydra-Matic” transmission in 1940 developed by Earl Thompson, one of their engineers.
Oldsmobile’s 1948 model was the first car to use a true automatic transmission. This is where the history of automatic cars really began. The Hydra-Matic, was marketed as: The greatest advance since the self-starter. Until 1955, the Hydra-Matic went through continual refining and upgrading, but its design and principles remained consistent throughout its long production run. In 1956 the Jetaway succeeded the Hydra-Matic, but it was not considered a great success and it itself was replaced in 1969 by the Turbo Hydra-Matic.
The Hydra-Matic Transmission

Hydra-Matic transmission drive – image by Michael Barera
Whilst not the first automatic transmission, the Hydra-Matic is considered today to be one of the most important steps in the development of the car. It was the first automatic transmission to reliably work, and its tremendous commercial success led it to spearhead the way for every following automatic transmission. In the history of automatic cars, the mighty Hydra-Matic has an important place.
The progress and history of automatic cars marched on when in 1958 BorgWarner produced a 3-speed automatic transmission box. In 1966 GM introduced the first front-wheel-drive vehicle with an automatic transmission – the Oldsmobile Toronado, which also had three speeds. In 1963 ZF Friedrichshafen AG, or ZF for short, introduced their version of a 3-speed automatic.

Oldsmobile Toronado
Honda started to compete with other automatic-equipped, domestic vehicles in 1968. Having studied the tens of thousands of patents that BorgWarner, GM and others filed, Honda developed a 2-speed, front-wheel-drive automatic transmission they named the Hondamatic. It was first fitted in the 1968 N360 AT, which had the smallest engine an automatic vehicle had ever had: a 354cc two-cylinder creating just 31HP. What made the Hondamatic unique from other transmissions was that it did not use planetary gears, but rather individual gears on parallel axles. Each gear ratio was activated by a different clutch pack. Eliminating the use of planetary gears allowed for less friction and better efficiency, which was crucial considering the small engine.
1970s to Present Day: Changes Forced By New Fuel Standards
The history of automatic cars changed direction yet again in the early 1970s. The general shape and size of vehicles changed drastically worldwide after the 1973 oil crisis and the introduction of the Corporate Average Fuel Economy (CAFE) standards in the US 1975. In the US car manufacturers were required to produce an average of 20mpg across their model lineup. Vehicles slowly switched from primarily rear-wheel-drive models to primarily front-wheel-drive to save weight. Car makers also reduced the size and weight of vehicles to help raise the fuel mileage. Both of these changes had a strong effect on the design of transmissions, especially in small, front-wheel-drive cars. Less space was available for the transmission and there was a new focus on using lighter-weight materials like aluminium for valve bodies and transmission cases.
Rear-wheel-drive cars and lorries used a 4th Gear with overdrive and a torque converter but continued to use the 4-speed planetary design for years to come until the manufacturers needed even more efficiency from their transmissions. They needed to move on from the standard, 4-speed automatics and start adding more gears to further increase efficiency.
Development came very swiftly in the coming years as demand grew even larger for fuel efficiency. In 1991 the first 5-speed automatic made by ZF was introduced in the BMW E36 shape 320i/325i and E34 shape 5 Series. In the US General Motors developed their own rear-wheel-drive, 5-speed transmission for their medium-duty line, the 5L40, in 2000. Another gear was added by GM when they introduced the 6-speed 6L45/6L50 in 2007 for their medium-duty, rear-wheel-drive line. GM introduced the 6-speed 6L80 for the rear-wheel-drive, heavy-duty line in 2006, finally replacing the 4-speed 4L60-E series they had used since 1992 which itself was a modernized version of GM’s original 4-speed unit— the 4L60 (700-R4) — that debuted in 1982.
Developments
Since the days of the Hydra-Matic, there have been significant developments. The most obvious of these is that of the number of forward gears that automatic transmissions now have. Our Mercedes-Benz A-Class vehicles have 8 forward gears. Another significant advance in technology is the move from mechanically controlled automatic transmissions to electronically controlled transmissions. With electronically controlled automatic transmissions, the scope for future development in terms of technological advancement is tremendous, and far outstrips that of mechanically controlled transmissions. As the move away from manual transmission vehicles continues unabated, there is no doubt that the automatic transmission technology will simply continue to improve and make the experience of driving an automatic car even better.
THE PRESENT - A comprehensive study by online marketplace Car Gurus reviewed the UK's 30 most popular car brands. It found that:
New manual models on sale fell
from 194 in 2018 to 89 in 2024 - a drop of 54 per cent.Jeep, Land Rover, Mini and Honda
offered only one manual option in their ranges during 2024.Volkswagen offers the most
with ten in 2024, followed by Ford and Hyundai, each with six.Data from the Society of Motor Manufacturers and Traders shows that over three quarters – 76 per cent – of new car sales were manuals in 2011 and by 2023, that figure had fallen to fewer than three in ten vehicles – 28.7 per cent.
Manuals to have completely ceased production include the UK’s all-time best-selling car, the Ford Fiesta, which left the assembly line for the last time in July 2023. Some manufacturers such as Volvo, Jaguar, Lexus and Mercedes-Benz no longer offer any manual models.
THE FUTURE - Driving Tests - Learner Drivers and Automatic cars
Learner drivers are also opting for automatics during their driving lessons in greater numbers than ever before, accelerating the demise of the manual gearbox.
There were a record 324,064 automatic-only tests taken in 2023, according to official Driver and Vehicle Standards Agency figures. That was an increase of a third since 2022 and 269% more than the 87,844 automatic-only tests taken a decade earlier. They accounted for 37% of the 865,000 driving tests carried out in 2023.
With so many test candidates passing their driving test in an automatic car, the future is clearly turning automatic. Combine this with the data showing the decline in the sale of manual cars, and the slow, but definite uptick in the sale of electric, clutch-less cars as well as conventional automatics, and there is no doubt that the UK is well on the way to favouring automatic transmission vehicles.

FAQs About Automatic Cars – Past, Present, and Future
Curious about the evolution of automatic cars and their place in modern driving? Our FAQ section delves into the most common questions about how automatic cars have shaped and continue to influence the world of motoring.
Automatic cars have a transmission that changes gear by itself, which removes the need for a clutch pedal. This makes driving easier, especially in stop-start traffic. Most drivers find driving an automatic car a smoother experience than driving a manual car.
Not yet in the UK, but the popularity of automatic cars has increased dramatically due to advancements in technology, improved fuel efficiency, and electric vehicles now being more popular. Comfort and ease of use attracts many drivers to automatic cars.
The history of automatic cars is a long one, and the future for automatic vehicles is very positive indeed and is closely linked to autonomous and electric vehicle progression and sales. There is no doubt that as manufacturers continue to come up with new technology, automatic transmissions will dominate the market and eventually the manual gearbox will all but disappear.
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