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GM introduced the industry’s first fully automatic transmission, called Hydra-Matic, on the 1940 Oldsmobile. Like many prior GM innovations, it was soon adopted by the entire industry.

Additional Information:

General Motors published a pamphlet for the introduction of the Hydra-Matic transmission that touted the reduction in steps for starting your car to three: Start the engine, select your direction, and step on the gas.
Click here to view the entire 1939 Hydra-Matic Drive pamphlet.