The American Austin was based on the engine and chassis design of Sir Herbert Austin's English Austin Seven. Beginning in 1930 these tiny cars were built in Butler, Pennsylvania. Although interest was high they never archived the hoped for sales forcing the company into receivership. Reorganized as the American Bantam Car Company in 1936 production resumed until working capital ran out in 1940. The last automobiles built by American Bantam were of their own design for the first U.S. Army Jeeps.