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Jeffrey Syken
“For years it not only provided transportation for the middle-class but was a firm steppingstone on the stratified pyramid of personal material progress. From a Ford, Chevrolet or Plymouth, the buyer progressed to a Pontiac, Buick, De Soto or Oldsmobile, all the while hoping for, and perhaps eventually achieving, a Chrysler, Lincoln or Cadillac . . . Since its beginning, the U.S. auto industry has narrowed from more than 2,000 different automobiles to 17 makes turned out by five major companies that produce 96% of all cars sold in the U.S…”
TIME, March 31, 1958
The new Edsel Division was part of Ford’s grand plan to expand its business into five distinct operating units. In addition to Edsel, the Ford, Mercury, Lincoln and Continental brands each had separate sales and marketing organizations. The intention was for Edsel to slip neatly between Ford and Mercury. Unfortunately, the gap between the most expensive Ford and the cheapest Mercury was only $136, much too narrow for the four Edsel series launched for 1958 to enjoy any elbow room, particularly after optional equipment was factored-in. Customers inevitably suffering sticker shock sought refuge in well-established brands and more sensible pricing structures. In essence, Edsel’s most direct competition was, ironically, Ford and Mercury cars.
Besides a nationwide recession that coincided precisely with the public roll-out of the Edsel models on September 4, 1957 (a/k/a “E-Day”), Edsel had other, less obvious, problems from the get-go. Of course there was that fuddy-duddy name which left a lot to be desired. Then there was the design of the front-end, in particular the vertical “horse-collar” grille (people gave it other, derogatory names) which was the brainchild of designer Roy A. Brown. Problem was it had to get bigger and bigger to allow sufficient air-flow into the radiator. Ultimately, it became a point of contention and was toned-down for the 1959 model year. Perhaps Edsel’s greatest failing was the poor workmanship and service that many Edsel owners complained about vociferously in publications such as Consumer Reports..
Instead of the 200K cars-per-year FMC needed to sell each year over three years, the Edsel sold about 116K units total in the three years it was on-the-market – not enough to make it economically viable to continue. However, although $150-million of the $250-million FMC invested in the Edsel Division would be lost forever, $100-million had gone into new production facilities and they would be used for production of future Ford and Mercury vehicles.
Although the Edsel had a dismal fate, it is now one of the most sought after collector’s cars and provides a valuable insight into what to-do and what not-to-do when marketing a new product.
This course includes a multiple-choice quiz at the end, which is designed to enhance the understanding of the course materials.
NY PE & PLS: You must choose courses that are technical in nature or related to matters of laws and ethics contributing to the health and welfare of the public. NY Board does not accept courses related to office management, risk management, leadership, marketing, accounting, financial planning, real estate, and basic CAD. Specific course topics that are on the borderline and are not acceptable by the NY Board have been noted under the course description on our website.