Byron J. Carter had many ideas about car-building. After getting experience with several automobile companies, he founded the Motor Car Company in 1905 in Detroit. He moved the company to Pontiac, Michigan and changed the name to Cartercar soon after that.

Shifting gears on early cars was very difficult. In an effort to combat that problem, Carter developed friction drive. A wheel connected to the rear wheels was pressed against a spinning disk, driven by the engine. The movement of the wheel, from the center of the disk to the outer rim, offered an infinite variety of gear ratios. His friction drive was the forerunner of the CVT found in many current autos.