It was actually Ransome Eli Olds (1864-1950), not Henry Ford, who invented the basic concept of the assembly line and started the Detroit area automobile industry. He was the first person to mass-produce cars to be sold in the U.S. The Olds Motor Co. was incorporated in 1897, with an initial capital investment of $50,000. In that year, the company produced only four automobiles.

Olds began making steam and gasoline engines with his father, Pliny Fisk Olds, in Lansing, Michigan in 1885. Olds designed his first steam-powered car in 1887. In 1899, armed with his growing knowledge of gasoline engines, Olds moved to Detroit to start the Olds Motor Works. However, before production could actually begin, his Detroit factory burned down, and only one prototype, a single cylinder buggy survived. However, once production began, this first production car, the Oldsmobile Gas Buggy, was a success and sold very well.

The name "Oldsmobile" was first used in 1900. Originally, these automobiles were known simply as "Olds". Olds was America's leading auto manufacturer from 1901 to 1904. In 1904, Ransom Olds left the company and started another automotive company, which manufactured "Reo" cars (derived from his initials). The Reo, although similar to the Oldsmobile, was not as popular or successful.

Despite the loss of its founder, the Oldsmobile Company prospered. In 1908, Will Durant bought the company, which along with Buick, became the foundation for General Motors. Oldsmobile is the oldest continuing car marquee in the U.S. On September 21, 1997, Oldsmobile celebrated its 100th birthday.