In the USA, automotive design reached a turning point in 1924 when the American national automobile market began reaching saturation. To maintain unit sales, General Motors head Alfred P. Sloan Jr. devised annual model-year design changes to convince car owners that they needed to buy a new replacement each year. Critics called his strategy planned obsolescence. Sloan preferred the term "dynamic obsolescence". This strategy had far-reaching effects on the auto business, the field of product design, and eventually the American economy. The smaller players could not maintain the pace and expense of yearly re-styling. Henry Ford did not like the model-year change because he clung to an engineer's notions of simplicity, economics of scale, and design integrity. GM surpassed Ford's sales in 1931 and became the dominant player in the industry thereafter. The frequent design changes also made it necessary to use a body-on-frame rather than the lighter, but less flexible monocoque design used by most European car makers.
Another turning point came in 1935, when automotive engineers abruptly dropped aerodynamic research after discovering, among other problems, aerodynamics would tend to produce one single optimal exterior shape. This would be bad for unit sales and for GM it would obviously work against their new strategy of market differentiation. Style and engineering went their separate ways, and all body shapes underwent cosmetic changes every year, whether or not the underlying automobile had changed.
Since 1935 automotive form has been driven more by consumer expectations than by engineering improvement. Form still follows function, but the primary function of the car was to get itself sold.
The most famous American auto stylist is probably Harley Earl, who brought the tailfin and other aeronautical design references to auto design in the 1950s. He is joined among legendary designers by Gordon Buehrig, responsible for the Auburn 851 and iconic Cord 810 and 812 (hence also the Hupmobile Skylark and the Graham Hollywood).