When did the US shift to a huge majority of automatic cars instead of manual ones and why did it not happen in Europe?

by Areat
Searocksandtrees
CopperRoyce

so the default answer in the link moderator /u/Searocksandtrees seems to be something like this

European taxation also encourages the sale of smaller, less powerful, and more economical engines.

and the smaller cars sold made it technologically less possible/more expensive to use automatic transmissions.

but can someone actually defend that first point: was it early taxation differences which created this path dependence or were there more regulations and taste issues at stake