Before Hot Wheels, the huge market for small car models was dominated at that time by the British company Lesney with their Matchbox cars. Elliot Handler, co-founder of Mattel, decided to produce a line of die-cast toy cars for boys.
There were sixteen castings released in 1968, eleven of them designed by Harry Bentley Bradley, with the first one produced being a dark blue Custom Camaro. Although Bradley was from the car industry, he had not designed the full-functioning versions of the real cars, except the Dodge Deora concept car, which had been built by Mike and Larry Alexander. Another of his notable designs was the Custom Fleetside, which was based on his own heavily-customized '64 El Camino.
Of the first 16 cars (sometimes called the "Sweet 16" by collectors), 10 were based upon customized versions of regular production automobiles of the era, and 6 were based upon real show cars and cars designed and built for track racing. All of the cars featured "Spectraflame" paintwork, bearings, redline wheels, and working suspension.
There was one notable difference in the first run production cars and that was a lack of "Door Cuts" in the molded cars. This was thought to be more accurate to the scale as door openings would be nearly invisible at that scale.
The metallic "Spectraflame" paintwork also marked out these models from drab enamel of Matchbox cars. The attractive finishes were achieved by firstly polishing the bare metal of the bodyshells and then coating them in a clear colored lacquer, and featured such exotic colors as "Antifreeze", 'Magenta' and "Hot Pink". Because "Hot Pink" was considered a "girls color", it was not used very much on Hot Wheels cars. For most castings, it is the hardest color to find, and today can command prices ten times as high as more common colors.
In order for the cars to go fast on the plastic track, Mattel chose a cheap, durable, low-friction plastic called Delrin to use as a white bushing between the axle and wheel. The early years of Hot Wheels are known as the Redline Era as until 1977 the wheels had a red line etched around the tire rim, popular on muscle cars at the time.
Well played with cars would develop an obvious "sag" to the wheels.
Packaged along with the cars were metal badges showing an image of the car so fellow collectors could identify each other and compare collections.
Most importantly, they were designed to run on orange plastic track, which could be placed to make interesting jumps and loops. Motive power was by means of gravity, by attaching the starting point of a course to a table or chair via an included C clamp. A two-lane starting gate was available, allowing two lengths of track to be set up for racing. Later sets had both the starting gate and a finishing flag which would be tripped by the first car.
As it turned out, the Hot Wheels brand was a staggering success. The series "re-wrote the book" for small die-cast car models from 1968 onwards, forcing the competition at Matchbox and elsewhere to completely rethink their concepts, and to scamper to try to recover lost ground.
The success of the 1968 line was solidified and consolidated with the 1969 releases, with which Hot Wheels effectively established itself as the hottest brand of small toy car models in the USA.
In 1977, the Redline Wheel was phased out, with the red lines being erased from the wheels. This also cut costs, but also reflected that the red lines popularized during the era of muscle cars and Polyglas tires were no longer current.