once read that, in the US, 80-85% of new cars are auto and the rest are manual. The article then went on to say in Europe it's almost the exact opposite. Maybe fuel economy has something to do with it?

Interesting perspective, you could well be correct.

I think that auto cars are perceived as luxurious over here (Merc's etc.) although it's usually available as a factory option on a lot (most?) cars.

One other important factor (in the UK at least) is that if you pass your driving test in an auto then you are not allowed to drive a manual. Of course, if you pass in a manual you are eligible to drive either.

Is this a UK only thing?