The original concept behind the Lion Motor Car Company was to produce a car with a "gyroscopic" engine. Other automanufacturers at the time were experimenting with this concept. However, that concept was abandoned before production ever began.

The principles involved with Lion were the president Austin E. Morley of Detroit; Henry Bowen, who had some experience with producing automobiles; and Fred Postal, the proprietor of the Hotel Griswald in Detroit. These men organized the Lion Motor Car Company in 1909 with capital of $300,000.

In 1910 Lion produced a 40 hp two-cylinder engine. The car was moderately priced at $1,600, well built, and well received by the public. The company slogan was "The Lion Forty runs like Sixty."

On the second of June 1912, the Lion factory burned to the ground in a catastrophic fire. One firefighter was killed and over 150 cars were destroyed, including the company's newest prototype, the Model Thirty. The community rallied behind Lion, and the city pledged its support in a rebuilding effort. However, the damage was too great. The company was insured for $180,000 and the estimated cost of the fire was $350,000. Soon the company was in receivership. The remaining assets were sold at auction far below the estimated market value. The Lion Motor Car Company never recovered.