With Charles Test and other investors, Newby founded the National Motor Vehicle Company in 1900. National began by producing electric runabout style vehicles before switching to radiator style vehicles in 1905. National began producing racing cars, and in 1912 a National car won the second running of the Indianapolis 500. Newby's involvement with National led to his partnership with old cycling friends, who went on to form the Empire Motor Car Company. His interests in National Automobile were sold to a New York corporation in 1916 and renamed National Motor Car and Vehicle Corporation.