On April 3, 1885, Gottlieb Daimler applied for a patent on his water-cooled single-cylinder internal combustion engine. A refinement of the Otto design, it had many of the features of the modern gasoline engine, including a vertical cylinder and fuel injected through a carburetor. Its water cooling, however, was the most important feature – with that addition, the engine could be made to function at temperatures that would not cause catastrophic failure of the automobile frame.
1887: Gottlieb Daimler builds motorized streetcar --- Gottlieb Daimler puts a miniature tram into operation at the Cannstatter Volksfest fair. The vehicle is powered by a single-cylinder Daimler engine and plies between Wilhelmsplatz and the Kursaal.