The historical upheavals of the 1970s radically reversed the direction of development of the automotive industry and changed the way we look at cars, and their impact continues to resonate today, amid current geopolitical tensions.
The oil crises of 1973 (OPEC embargo) and 1979 (Iranian revolution) caused oil prices to quadruple in a very short period of time, making fuel an extremely valuable economic commodity. The first oil crisis of 1973 erupted as a direct result of the Yom Kippur War between Israel and a coalition of Arab states led by Egypt and Syria, when the Arab states within OPEC imposed an embargo on oil exports to Israel's Western allies, sending prices skyrocketing overnight.
The second major blow came in 1979 with the Iranian revolution, which paralyzed production and exports in this key Middle Eastern superpower and caused widespread panic. Long lines at gas stations became commonplace around the world, and the automotive industry was forced to make immediate and drastic adjustments, as the previously fuel-efficient vehicle designs became unsustainable overnight for most users. Gasoline prices then skyrocketed, which in today's terms would mean a sudden jump of more than two euros per liter, causing widespread shock and soon a change in consumer mindset.
In the United States, this meant a rapid decline of classic "muscle cars", as the previous consumption, which averaged up to 30 l/100 km, was simply no longer economically acceptable, let alone justified. American manufacturers began downsizing, which significantly reduced performance and created the so-called "malaise" era of slower and smaller American cars. A clear example from this period is the second-generation Ford Mustang (1974), which in the basic version offered only 65 kW (89 hp), while the 1975 Chevrolet Corvette was only able to produce 123 kW (167 hp). Even large Cadillacs lost almost half a ton of weight in a few years and switched to significantly smaller engines.
On the contrary, Japanese and European manufacturers mostly profited from the oil crisis, as they were able to launch small and (especially in the Japanese case) extremely reliable vehicles on the market. The Honda Civic with CVCC engine achieved consumption of around 6 l/100 km and met the new emission standards without a catalytic converter, and its purchase value at the time would be around 15 thousand euros in today's terms. In Europe, the revolution was sparked by the Volkswagen Golf (1974) and Renault 5 (1972), both with front-wheel drive, while Mercedes-Benz popularized durable diesel engines with the W123 series, such as the stocky 200D with a rather modest 40 kW (55 hp) of maximum power.
The crisis also triggered significant regulatory changes, notably the strict US CAFE standards, which penalised car brands financially for excessive average fuel consumption across their entire sales fleet. The industry itself has shifted technologically towards innovations that reduce engine power while maintaining performance. Manufacturers have started to use lighter materials on a massive scale, invested in the development of curved lines for better aerodynamics, and introduced turbochargers and precise electronic fuel injection (such as Bosch's K-Jetronic), which has enabled smaller engines to be more efficient.
The consequences of the oil crisis were also felt in Slovenia, or what was then Yugoslavia, where the state implemented strict austerity measures due to a shortage of foreign exchange, including the even-odd system and the introduction of fuel vouchers. The even-odd system (referring to the last digit of the license plate) in Yugoslavia proved to be very rigid, and at the same time, fuel consumption did not decrease significantly, as people in many places found themselves buying two cars and using them alternately on the days allowed.
The long-term impact of the crises of the 1970s is still visible in the automotive industry today, but history is repeating itself more and more (vividly) in light of current events in the Middle East. Escalating geopolitical conflicts in 2026, attacks on trade shipping lanes in the Red Sea, and instability in key oil-rich regions are re-injecting uncertainty into energy markets and causing fuel prices to rise at European pumps.
Regardless of the fact that the modern automotive industry is much less directly dependent on crude oil than it was half a century ago, thanks to hybrids and the transition to electric vehicles, every new shock from the Middle East accelerates the need for diversification of sources and proves that complete energy independence of individual countries and continents remains the most important goal of future mobility.
