In 1901 the Austin Auto Co. was formed by James E. Austin and his son Walter S. Austin. But, it was not until 1902 that their first car was on the road, their last in 1918. James E. Austin, a retired lumberman, and his son had long been inventors, inventing a shingle cutting machine, a chainless bicycle, and a hydraulic drive system for cars.

Walter developed the car, although the father took an active role in the company. Two distinguishing features of the cars, starting with the 1913 models, were that both the service and emergency brakes were controlled by foot pedals rather than a hand brake. Another feature was the two-speed axle that was designed for both city and high speed driving.

This was revolutionary for the time, and was the cause of a patent infringement suit. A representative from the Cadillac Motor Co. came and talked to Mr. Austin about the two-speed axle expressing interest in it. Shortly afterward Cadillac introduced a similar axle, Austin sued for patent infringement and was awarded $500,000. This amount was lowered on appeal by Cadillac and was believed to actually be $150,000. Mr. Austin was no stranger to the court room, he was constantly brought into court for violating the 15 mph speed law in Grand Rapids.

The cars did not stay around long due to their high cost and the restrictions on materials during World War I. The first cars in 1902 sold for $2,000 and by 1914 were sold for $6,000. "The Highway King," as the car was known, was designed for the elite society. Owners of Austins included: William Randolph Hearst, opera star Emma Calve, and Charles B. Judd, general manager of Bissell Carpet Sweeper Company. In total no more than 500 cars were made.