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The paper surveys the economic and engineering aspects of the automotive industry, so that engineers can align themselves with its future development. Better performance and longer life due to improved design and materials distinguish the 1920 car from its predecessors. One of the healthiest signs in the industry is the uniform determination of practically every manufacturer to improve the quality of his product. The designer has been forced to extend himself in getting the highest possible output from the smallest possible units. This trend is very noticeable. Conditions relating to prices, the return to peace-time production, the potential demand for cars and the present supply, and the probable improvements in cars are then reviewed, the thought then passing to a somewhat detailed discussion of detachable-head engines.