Ford’s ill-fated Edsel
Division was born in 1957 as part of an ambitious plan to match General
Motors division for division. Edsel died only two years later, but it
remained the butt of jokes for decades and its name became virtually
synonymous with failure. This week, we look at the history of Edsel and
the reasons it flopped.
MERCURY RISING
Today,
with car companies selling or shuttering divisions as fast as state
franchise laws will permit, it’s become fashionable to criticize the
auto industry — particularly General Motors — for its surfeit of brands.
For decades, however, GM’s divisional structure was the envy of
Detroit. Almost every automaker aspired to a GM-like brand hierarchy,
from Chrysler to upstart independents like Kaiser-Frazer.
Until the late thirties, a major exception was the Ford Motor Company. Although Ford had acquired bankrupt Lincoln back in 1922,
Henry Ford had never cared for expensive cars and he steadfastly
refused to create a mid-priced line. In the early years of the Great
Depression, that wasn’t much of a loss, but as the economy began to show
signs of life, the vast price gap between Ford and Lincoln cost the
company many buyers.
In the summer of 1937, Edsel Ford and sales
boss John R. Davis finally persuaded Henry to authorize the development
of a new mid-priced car. It emerged the following fall as the 1939
Mercury. Although the Mercury shared many components with the standard
Ford, including a bored-out version of the familiar flathead V8,
it was bigger, heavier, and more expensive, putting it in the same
territory as mid-priced makes like Oldsmobile, Hudson, and DeSoto.
The
Mercury sold reasonably well, but it was not a great threat to GM’s
mid-priced divisions. Its main failing was that most buyers perceived it
as a Ford, not a separate brand. Indeed, even Edsel Ford had wanted to
call it the Ford-Mercury and all of the early promotional material
carried that name. Most Mercurys were even sold through Ford dealers;
there were a few dealers who only sold Lincolns and Mercurys, but they
were rare before the war. The consequence was that each of Mercury’s
direct rivals outsold it by more than two to one.
HENRY FORD II AND THE WHIZ KIDS
By
the fall of 1945, Edsel Ford was dead and Henry Ford had reluctantly
ceded control of the company to Edsel’s eldest son, Henry Ford II. Henry
II, then only 27, realized immediately that the company’s problems were
beyond his ability, and sought outside help.
Shortly after
Henry’s ascendancy, he hired a group of young officers recently released
from the United States Army Air Force, including Charles “Tex”
Thornton, Ben Mills, Francis (Jack) Reith, and Robert McNamara.
All had
worked together in the Army Air Forces’ Office of Statistical Controls,
applying the latest techniques in business analysis to the war effort.
When the war ended, Tex Thornton sent an impudent telegram to Henry Ford
II, offering the group’s expertise to Ford.
The Whiz Kids, as
Thornton’s group became known, were smart, ambitious, and ruthless.
While they each aspired to top positions within Ford (which many of them
later achieved), many of them had little interest in cars or the auto
business for their own sake. Cars — and to some extent Ford itself —
were simply a means to an end.
Clever as the Whiz Kids were, they
were not much older than Henry Ford II, so Henry decided he needed more
experienced managerial help. In the summer of 1946, he hired Ernest R.
Breech, former president of GM’s Bendix subsidiary, as his executive
vice president. Breech, in turn, recruited a host of other GM veterans,
including Harold Youngren, Earle MacPherson, and Lewis Crusoe, who
became Ford’s VP of operations and later the general manager of the new
Ford Division. Unlike the Whiz Kids, who were after power, Breech’s
group sought to make over Ford in GM’s image. Their ultimate goal was to
do everything GM had done, only better — from management style to
divisional structure.
Inevitably, there was great tension between
the Whiz Kids and Breech’s group. Despite their youth, the Whiz Kids had
just spent three years telling generals what to do and had an
unshakable confidence in their own talents. They sometimes made a great
show of deference to Breech and other older executives, but privately,
they often regarded them as obstacles and adversaries.
Henry Ford
II watched these conflicts unfold, never permanently siding with any one
group. His only goal was to restore his grandfather’s company to its
former position as the world’s number-one automaker, and he was willing
to follow whatever path seemed likely to get him there. To some extent,
he may have been intimidated by the brilliant and driven men working for
him, but at the end of the day, it was Ford’s company.
The
1946-1948 Fords, Mercurys, and Lincolns were lightly refreshed prewar
designs; this is a 1948 Mercury station wagon. The 1949 models were
introduced quite early in 1948: The new Mercurys bowed on April 29,
almost six months earlier than usual.
POSTWAR FORDS, LINCOLNS, AND MERCURYS
Once
Henry Ford I was gone, no one at Ford had any compunctions about
expanding the company’s product line. Early plans called for an
extensive new lineup: a bigger standard Ford, a new compact “Light Car,”
two different Mercurys, and three Lincolns, the largest of which was to
replace the Continental as the company’s flagship.
With Ford’s
finances still shaky, however, those plans proved overly ambitious. The
Light Car was sent overseas to become the 1949 French Ford Vedette while
the bigger Lincolns were canceled. Ford launched a crash program to
design a new standard Ford, the bigger Ford became a Mercury, and the
larger Mercury became the base-model Lincoln.
When the all-new 1949 models finally appeared, the lineup was as follows:
- The Ford, on a 114-inch (2,896mm) wheelbase, priced in the $1,300-$1,900 bracket
- The Mercury, on a 118-inch (2,997mm) wheelbase, priced in the $2,000-$2,500 bracket
- The standard Lincoln, on a 121-inch (3,073mm) wheelbase, priced in the $2,500-$3,200 bracket
- The Lincoln Cosmopolitan, on a 125-inch (3,175mm) wheelbase, with prices ranging from just under $3,200 to about $4,000.
In
theory, the new model range gave Ford an entry in each major segment of
the American market. The Ford competed with Chevrolet and Plymouth; the
Mercury with Pontiac, Oldsmobile, and Dodge; the standard Lincoln with
Buick and Chrysler; the Lincoln Cosmopolitan with Cadillac and Packard.
In practice, there were still large price gaps between the different
model lines, the most problematic being the more than $500 gap between
Mercury and Lincoln. That was a lot of money at the time, so the gap
probably cost Ford a lot of middle-class customers. Marketing studies
revealed that only about one in four Ford buyers moved on to a Mercury
or Lincoln while more than four out of five Chevrolet buyers stepped up
to a more expensive GM car. Ford needed something to fill the gap.
The 1949-1951 Mercury was originally designed
by Bob Gregorie as the 1949 Ford, but Ernie Breech thought it would be
too big and cost too much to build for the low-priced field, so it
became a Mercury instead. Powered by a 255 cu. in. (4,184 cc) version of
the Ford flathead V8, it had 112 hp (84 kW) in 1951. The 1949-1951 Merc
was very popular with hot rodders and customizers, although its
straight-line performance was no match for that of the new Oldsmobile Rocket Eighty-Eight. (Photo © 2007 Späth Chr.; released to the public domain by the photographer)
THINKING BIGGER
In September 1948, only four months after the ’49s went on sale,
Henry Ford II ordered a study group to explore adding a new mid-priced
car between Mercury and Lincoln. Preliminary planning work started the
following year, but it was put on hold in the summer of 1950, following
the outbreak of the Korean War. The need hadn’t gone away, but with new
production restrictions and severe shortages of strategic materials,
Ernie Breech and the executive committee decided it was a bad time to
introduce a new car line.
In August 1951, Emmett Judge, the head of product planning for
Lincoln-Mercury, and Morgan Collins, Lincoln-Mercury’s controller,
appeared before the committee with a new proposal. They had recently
analyzed GM’s 1950 shared bodies program, which was one of the most
ambitious in the industry to date, and concluded that if Lincoln-Mercury
adopted a similar interchangeability program, they could save enough
money on tooling for their existing lines to finance a new model.
The Collins-Judge proposal was eminently logical, but it was
politically problematic. Various factions were busily wrestling for
control of product planning decisions, and the Collins-Judge plan, while
eminently sensible, satisfied none of these ambitions.
From 1949 to 1951, Lincoln offered both a
short-wheelbase base model (originally designed as a big Mercury) and
the bigger Cosmopolitan; this is a 1951 Cosmopolitan convertible. In
1952, Lincoln consolidated its line on a single chassis, sized between
the 1951 models. Since the cheaper model had accounted for more than
half of all Lincoln sales, this move proved to be a serious marketing
mistake. (Photo © 2008 Jagvar; released to the public domain by the photographer)
Nonetheless, the price-gap issue remained, so in January 1952, the
executive committee assigned sales VP John Davis to conduct a new study
on adding additional mid-priced models. Considering the work that had
already been done, there was little logical need for another study, but
it served as a sort of bureaucratic flanking maneuver, giving the
different factions a chance to spin the existing proposals their own
way.
The so-called “Davis Book,” a massive, six-volume treatise completed
in June 1952, outlined in great detail what most Ford executives had
already realized about the company’s position in the mid-priced market.
If anything, that problem had only gotten worse: With the demise of
Lincoln’s cheaper short-wheelbase model for 1952, the least-expensive
Lincoln now cost almost $1,000 more than the equivalent Mercury.
Although Ford chief engineer Earle MacPherson reportedly thought the
Lincoln should target the Oldsmobile Ninety-Eight, the Lincoln was
priced like a Cadillac, not an Olds or Buick. Mercury, meanwhile, lacked
the prestige and distinction to appeal to Buick or Chrysler buyers.
The Davis Book basically reiterated the recommendations of the
previous studies, proposing the creation of a new “big” Mercury
(described as “Mercury-Monterey”) combining the Lincoln body shell with
Mercury running gear. Davis added a new wrinkle by recommending that
Mercury and Lincoln be split into separate divisions and that Ford
introduce a new flagship model priced above existing Lincolns; the
latter was intended to answer dealer requests for a successor to the old
Continental. This flagship was to be built by a new Special Products
Division, which would increase the total number of Ford automotive
divisions from two four.
Henry Ford II reviewed these recommendations and assigned his younger
brother, William Clay Ford, to lead the development of the flagship
car. Lincoln-Mercury Division assistant general manager Richard Krafve
was assigned to develop the “Mercury-Monterey” concept, initially slated
for the 1956 model year.
BIRTH OF THE E-CAR
Despite two marketing studies and an obvious need, development of the
Mercury-Monterey proceeded surprisingly slowly. Styling work didn’t
begin until mid-1954, fully two years after the Davis Book.
According to
historian Tom Bonsall, many (though not all) of the Whiz Kids were
dubious about the upper-middle-class model, thinking it would cost too
much. Ford’s senior management, meanwhile, was preoccupied with early
preparations for Ford’s first public stock offering, which took place in
January 1956 and ultimately netted more than $640 million.
Until late 1954, the assumption was still that the new model would be
an upscale Mercury, offered through existing Lincoln-Mercury
franchises. However, a series of management changes in early 1955
changed those plans dramatically. In January, Ernie Breech was named the
chairman of Ford’s new board of directors.
Lewis Crusoe assumed some of
Breech’s former responsibilities with a promotion to group vice
president of car and truck operations; Robert McNamara took Crusoe’s
place as general manager of Ford Division. At the same time, Whiz Kid
Jack Reith returned to the U.S. after a stint as general manager of Ford
SAF, Ford’s struggling French subsidiary. Reith had just completed a
deal to sell Ford SAF to Simca, which was heralded as a
silk-purse/sow’s-ear achievement for a subsidiary many observers had
considered a lost cause. After returning to Dearborn, Reith rejoined
Crusoe’s staff, certain that he was bound for bigger and better things.
Crusoe and Reith expanded on the Davis Book’s recommendations with a
remarkably ambitious new plan to expand the company from three
automotive divisions (Ford, Lincoln-Mercury, and Special Products) to
five, including separate Lincoln and Mercury divisions and a new
mid-priced division known as “E-Car” (for “experimental”), positioned
between Ford and Mercury. The divisions would share three basic body
shells: one for Ford and the low-end E-Car, one for the high-end E-Car
and the cheaper Mercury, and one for the big Mercury and Lincoln.
The new divisions were not intended simply as a paper shuffle; the
principal motivation was to allow Ford to expand its dealer body. At the
time, Ford had only about half as many U.S. dealer franchises as
General Motors, which put definite limits on how many cars Ford could
expect to sell. That was particularly true of Mercury. Although Ford’s
mid-priced brand was doing quite well in the early and mid-fifties, its
total sales amounted to barely a third of GM’s Buick-Oldsmobile-Pontiac
trio — which together averaged around 1.2 million units a year — in part
because Lincoln-Mercury had far fewer dealers than Buick, Oldsmobile,
and Pontiac.
In their presentation to the board on April 15, Crusoe and Reith
claimed their plan would increase Ford Motor Company’s total market
share by almost 20 percent in the next six years. Some senior Ford
executives, notably John Davis, objected to the plan, arguing that
trying to move Mercury upscale and shift its existing buyers to a new
brand would be a disaster. Some of the staunchest opposition came from
McNamara, who argued that the plan was so expensive that it wouldn’t
show a profit for years. (Tom Bonsall suggests that McNamara may have
seen the plan as an unwelcome power play by Reith.)
Despite those criticisms, the board of directors — including Breech —
unanimously approved the Crusoe-Reith plan. The formal reorganization
of divisions took place three days later, separating Mercury and
Lincoln, renaming the existing Special Products Division Continental
Division, and adding a new Special Products Division to build the
still-unnamed E-Car. Jack Reith became general manager of Mercury, which
Bonsall suspects was Reith’s goal all along. The new general manager of
the E-Car division was Dick Krafve, who, ironically, had opposed the
Crusoe-Reith plan, arguing that the E-car should be a Mercury. Despite
his reservations, Krafve accepted the assignment and vowed to do his
best.
“AN OLDSMOBILE SUCKING A LEMON”
By the time the board approved the Crusoe-Reith plan, styling
development of what would become the E-Car had been under way for almost
a year, led by a young designer named Roy Brown, Jr., previously part
of Gene Bordinat’s Mercury studio. In an interview with Dave Crippen in
the eighties, Bordinat recalled that Brown was ecstatic about his new
assignment: To be able to set the direction for a completely new car was
every designer’s dream.
Brown’s team had several directives for the new car’s design, of
which the most important was the imperative to make the car immediately
recognizable from any angle. Distinctive styling was critical to the
E-Car’s commercial prospects, since it would be using body shells shared
with other Ford Motor Company models.
The Edsel’s “horse collar” grille, designed
by stylist Jim Sipple, was inspired in part by Alfa Romeo. This
four-door hardtop is a 1958 Edsel Ranger, the base EF (Ford-bodied)
model. Rangers and Pacers were 213.1 inches (5,413 mm) long on a
118-inch (2,997mm) wheelbase; the larger Mercury-based Corsair and
Citation were 218.8 inches (5,558 mm) long on a 124-inch (3,150mm)
wheelbase, tipping the scales at over 4,200 lb (1,920 kg). The big
Edsels were actually larger than the low-end Mercurys that shared their
body shell. (Photo © 2005 Robert Nichols; used with permission)
That push for uniqueness was responsible for most of the E-Car’s
controversial styling features. The vertical grille, which would inspire
a host of imaginatively unflattering epithets, was chosen because no
other American car of the time had a similar front-end treatment. The
same logic inspired the dramatic gullwing taillights and side scallops.
Whatever its other virtues, the E-Car did not look like anything else on
the road.
When it was originally designed, the E-Car was bigger than the
standard Mercury, but after the approval of the Crusoe-Reith plan,
Brown’s team rescaled their design for two different versions: the
Ford-bodied (EF) standard models and the Mercury-bodied (EM) big cars.
That decision was made fairly late in the design process, so there was
little stylistic difference between the EF and EM versions other than
trim and overall dimensions.
Roy Brown presented a full-size fiberglass model of an EM convertible
to the board of directors on August 15, 1955, receiving a standing
ovation led by Ernie Breech. The design was approved precisely three
months after the approval of the Crusoe-Reith plan.
MOTIVATIONAL RESEARCH
In late 1955, Special Products Division marketing specialist David
Wallace ordered yet another marketing study, this one an in-depth
analysis of prospective buyers conducted by Columbia University’s Bureau
of Applied Social Research. This study, which involved 1,600 interviews
in Peoria, Illinois, and San Bernardino, California, went well beyond
the typical marketing survey, attempting to quantify the psychological
motivations of new-car buyers.
Motivational research of this kind was a new idea in the fifties. The
hipper ad agencies had embraced it, but conservative businesses viewed
it with great suspicion and it had drawn the ire of social critics like
Vance Packard, who saw motivational research as an insidious force,
manipulating people into buying things they neither wanted nor needed.
Many Detroit executives dismissed it as mumbo jumbo.
The Columbia study later sparked considerable controversy and some
critics even blamed it for the E-Car’s eventual failure. Although the
study’s questions and methodology were a bit peculiar, the conclusions
mostly reiterated the previous studies, suggesting that the E-Car’s
target audience should be upwardly mobile families and young executives.
In any event, the study’s actual impact on E-Car product planning
appears to have been very limited. It seems that the study’s real
purpose was not so much to draw new conclusions as to rationalize
choices that had already been made months months or years earlier.
The Edsel’s gullwing taillight treatment is
almost as dramatic as its grille, presaging the rear-end styling of the
following year’s Chevrolet. Edsel running gear and suspension were very
conventional — double wishbones in front, Hotchkiss drive
in back — but it was one of the first Ford products with self-adjusting
brakes. (Photo © 2005 Robert Nichols; used with permission)
NAMING THE EDSEL
The Columbia study did not address what became the most contentious
part of the E-Car’s development: selecting a name. Early on, Dick Krafve
had suggested “Edsel,” thinking it would be an appropriate way to honor
the man who had brought Ford to the mid-priced market in the first
place, but the Ford family had not been enthusiastic.
The naming process, which took months, ultimately involved the
Special Products Division marketing staff; a local market research firm;
and the division’s new ad agency, Foote, Cone & Belding (FCB).
David Wallace and product planner Bob Young even asked the well-known
Modernist poet Marianne Moore to suggest some names, which yielded
ludicrous results; among Moore’s suggestions were “Andante Con Moto,”
“Mongoose Civique,” and “Utopian Turtletop.” (Tom Bonsall notes that
contrary to popular belief, Ford did not actually
hire Moore, although Young and Wallace did send her flowers to thank her for her efforts.)
Special Products PR director Gayle Warnock presented the more
rational name suggestions to the board in mid-1956. Ernie Breech
summarily rejected all of the choices and asked to hear some of the
runners-up. Eventually, they came back to “Edsel” and Breech suggested
they call the E-Car that. Dick Krafve pointed out Henry Ford II’s
previous opposition to the name, but Breech said he would talk to Henry
personally. (In later years, Breech tried to downplay his role in this
decision, claiming that Crusoe had talked him into it. However, it was
Breech who convinced Henry Ford to secure the reluctant approval of the
Ford family for the use of the Edsel name.)
Warnock was very uncomfortable with the Edsel name, which was not
exactly mellifluous; Warnock later claimed it cost the E-Car 200,000
sales. Moreover, the division had just wasted months of work and
thousands of dollars trying to come up with new names just to come back
to Dick Krafve’s original idea. That pattern was becoming an overriding
theme of the entire E-Car program.
The work done on alternative name choices was not wholly in vain.
Some of the rejected names became the Edsel’s initial trim series: The
smaller EF (Ford-based) models were the Ranger and Pacer, supplemented
by Roundup, Villager, and Bermuda station wagons while the EM
(Mercury-based) cars were named Corsair and Citation.
Ford announced the Edsel name to the public in a press statement on
November 19. With the announcement, Special Products Division became the
Edsel Division.
THE CRUSOE-REITH PLAN COMES APART
By the time of the Edsel announcement, the Crusoe-Reith plan was already fraying.
The first warning sign was the demise of the original plan to share
bodies between Mercury and Lincoln. In the fall of 1955, however, Earle
MacPherson had suggested switching the 1958 Lincoln to unibody
construction and building it in Ford’s new Wixom, Michigan, plant
alongside the 1958 Ford Thunderbird.
Wixom did not have sufficient capacity to build Mercurys and no other
Ford plant was then capable of handling unitized construction.
As a result, the ’58 Lincoln would once again have a stand-alone body
and the so-called “Super Mercury,” a crucial part of Jack Reith’s plan
to take Mercury upscale, would have to settle for a stretched version of
the standard Mercury body. Reith protested, but MacPherson, by then
Ford’s vice president of engineering, had more clout. The board approved
the unitized Lincoln.
To make matters worse, the Continental Division had turned out to be
an expensive flop. Its first product, the $10,000 Mark II coupe, had
been released in November 1955 to mild critical acclaim and meager
sales.
Although production continued until August 1957, Ford shuttered
the division in July 1956 and rolled its operations back into Lincoln’s.
In November 1956, Edsel inherited the former Continental offices. It
was not an auspicious omen.
In May 1957, the Crusoe-Reith plan lost one of its principal
architects: Lewis Crusoe suffered a heart attack that forced him into
early retirement. Robert McNamara, who was still strongly opposed to the
whole plan, replaced Crusoe as group VP of car and truck operations.
Reith himself was the next casualty. That August, he was fired as
general manager of Mercury and Lincoln and Mercury were reintegrated
under the leadership of James Nance, formerly the head of Studebaker-Packard. With Reith’s exist, the only significant remnant of the Crusoe-Reith plan was the Edsel.
Part of the rationale for the Edsel’s
overwrought styling was to distinguish it from its less-expensive Ford
sibling — the 1958 Pacers pictured above share the same body shell as
the 1958 Ford Fairlane. (Photo © 2005 Morven; used under a Creative Commons Attribution ShareAlike 3.0 Unported license)
THE EDSEL IS BORN
Edsel pilot production began on April 15, 1957, exactly two years
after the board approved the Crusoe-Reith plan and about a week after
the first dealership franchise agreements were signed. Full production
began in July.
Early on, there had been a tentative plant to give the Edsel division
its own factory, but the board decided instead to expand the capacity
of several existing plants and build the Edsel alongside its Ford and
Mercury cousins. The sales force was told that this was a temporary
measure and that Edsel would eventually have a factory of its own.
Building the Edsel on the same lines as Fords and Mercurys may have
made financial sense, but it was disastrous for quality control. Despite
their structural commonality with the contemporary Ford and Mercury,
Edsels had unique trim and many unique components, which greatly
complicated assembly line operations and created many opportunities for
error. Shared production also generated considerable resentment among
factory workers, who were annoyed at having their jobs made more
difficult by another division’s products. Ford quality was already
sub-par that year and Edsels were often even worse, with some cars
arriving at dealers in unsalvageable condition.
That was apparently Robert McNamara’s conclusion about the entire
Edsel operation. Around the time the first Edsels went on sale, McNamara
allegedly told FC&B’s Fairfax Cone that Ford already planned to
phase out the division.
All 1958 Edsels had V8 engines; a six became
optional in 1959. This 1958 Pacer hardtop coupe has a 361 cu. in. (5,902
cc) V8, part of the new FE (Ford-Edsel) series that spawned the later
390 (6,391 cc) and 427 (6,986 cc) engines. The Edsel version, called
E-400, was rated 303 gross horsepower (226 kW) with a single four-barrel
carburetor. The 1958 Corsair and Citation used the E-475, a 410 cu. in.
(6,722 cc) version of the big MEL-series engine shared with Mercury and
Lincoln, with 345 gross horsepower (257 kW). (Photo © 2007 Redsimon; used under a Creative Commons Attribution 2.5 Generic license)
SELLING THE EDSEL
The 1958 Edsels debuted with great fanfare on September 4, 1957. Its
launch was preceded by months of teaser ads and grandiose claims by Ford
management. In January, Ford had announced that the Edsel would be a
radical new design, using many new production techniques. Dick Krafve
told the press that Edsel expected to sell 200,000 units in the first
year.
The automotive press was scrupulously polite about the Edsel’s looks,
but the public was far less kind. The Edsel’s grille immediately became
the punchline of many off-color jokes, which compared it to everything
from a horse collar to female anatomy. Not since the “coming or going”
Studebaker of 10 years earlier had a new car’s styling been the subject
of so much public ridicule. Edsel’s frequently poor early quality
control did nothing to help.
The dashboard of a 1958 Edsel Ranger. The
left-most pod is a compass; on upper-series Edsels, it was filled with a
tachometer. The dials to the right of the steering column are a clock
and the heater controls. The left bank of switches control the lights,
antenna, and courtesy lights, while the right bank (not visible)
controls the heater fan, wipers, and cigarette lighter. The buttons on
the steering wheel bus are the “Teletouch” transmission controls. Unlike
the pushbutton transmissions used by contemporary Chrysler products,
Teletouch was electrically operated. It was a neat idea, but it proved
grievously unreliable and was dropped at the end of the model year.
(Photo © 2005 Robert Nichols; used with permission)
Aside from its styling and assembly quality, the Edsel’s fundamental
problem was the worrisome ambiguity of its market position. Although
Jack Reith’s long-awaited big Mercury — now called Park Lane — also
debuted that fall, the original plan to take Mercury upmarket did not
materialize. As a result, the Edsel straddled the Mercury line rather
than fitting between Ford and Mercury. Worse, there was
still a gap of nearly $700 between the most expensive Mercury Park Lane and the cheapest Lincoln.
If the Edsel had debuted two years earlier, it might have done
somewhat better, but it had the misfortune to arrive just as the economy
began to sink dramatically. The stock market had taken a nosedive back
in June and by September, the U.S. economy was entering a full-fledged
recession. Moreover, buyers had apparently had their fill of overwrought
styling just Detroit’s new models hit new heights of rococo gimmickry.
As a result, sales of most mid-priced cars immediately tanked, with some
makes falling by more than 30%. Mercury’s total volume plunged from
about 286,000 for the 1957 model year to about 153,000 for 1958. Edsel’s
first-year total was only 63,110, less than a third of Ford’s
optimistic sales projections.
FULL RETREAT
By the end of 1957, it was clear that Edsel sales did not justify the
expense of maintaining a separate division. On January 14, 1958, it was
rolled into Lincoln-Mercury, which was renamed the
Mercury-Edsel-Lincoln Division with Jim Nance as general manager.
Richard Krafve resigned from Ford a year later; he went on to become the
president of Raytheon.
The 1959 Edsel was, if anything, less
ostentatious than its overwrought ’59 Ford sibling, retaining the
vertical grille concept in a much less confrontational form. If the 1958
Edsel had looked like this, it might have sold better than it did.
Ford tried hard to put a positive spin on Edsel’s weak debut. A June
1958 press release admitted that first-year sales were disappointing,
but spoke optimistically about the marque’s future. In fact, Edsel’s
fate beyond 1960 was already in considerable doubt.
In August 1958, James Nance was ousted as the head of
Mercury-Edsel-Lincoln. His replacement was Ben Mills, another of the
Whiz Kids. Mills announced that the 1959 Edsel line would be pared down
to the Ranger, Corsair, and Villager station wagon, all using the
smaller Ford shell. The bigger EM (Mercury-based) models and the big
MEL-series engine were dropped. The Ranger traded its previously
standard 361 cu. in. (5,902 cc) FE-series engine for the 292 cu. in.
(4,778 cc) Y-block; Ford’s 223 cu. in. (3,653 cc) “Econo-Six” was now
optional. The optional automatic transmission on smaller-engined Edsels
was now the Mile-O-Matic, essentially the same as the new two-speed
Fordomatic. The unreliable Teletouch pushbuttons were long gone.
Most 1959 Edsels had smaller engines than
their 1958 counterparts. The Ranger had the 292 cu. in. (4,778 cc)
Y-block with 200 hp (149 kW), while the standard engine on the Corsair
was now the 332 cu. in. (5,436 cc) FE with 225 hp (168 kW). The ’58
Ranger’s 361 cu. in. (5,902 cc) four-barrel engine, renamed “Super
Express,” was optional; it again had 303 gross horsepower (226 kW).
Four-door Ranger sedans like this one were the most popular 1959 Edsel;
they had a base price of $2,684 and accounted for 12,814 sales.
The 1959 Edsel’s styling was toned down considerably from its first
year. Contrary to popular belief, the more conservative look was not a
reaction to the public ridicule; Roy Brown’s team had designed the ’59
in late 1956 and early 1957, well before the 1958 Edsel went on sale.
The new styling was much more conservative than the ’58, although it was
also more ordinary, making the Edsel look more like the facelifted Ford
it was.
Despite the smaller engines and toned-down styling, the 1959 Edsel
was more expensive than the ’58, by as much as $120. The higher prices,
combined with the still-rocky state of the economy and lingering buyer
doubts about the Edsel’s quality, made for dismal sales. The total for
the 1959 model year sank to about 45,000, just behind Chrysler’s equally
moribund DeSoto.
Roy Brown, who was transferred in April 1958 to Ford of England, also
developed full-size clay models for the 1960 Edsel. However, Robert
McNamara decided that Edsel sales didn’t justify the tooling investment.
Stylist Bud Kaufman was ordered to create a cheaper alternative design
with a minimal tooling budget of less than $10 million — small change by
Detroit standards. It meant that the 1960 Edsel would be little more
than a badge-engineered Ford.
All 1959 Edsels shared the body shell of the
’59 Ford. Although the wheelbase was stretched from 118 inches (2,997
mm) to 120 inches (3,048 mm), the 1959 Edsel Ranger was slightly shorter
than the ’58, 210.9 inches (5,357 mm) overall. Car Life,
testing a four-door hardtop Ranger with the same powertrain as this
car, recorded a 0-60 mph (0-97 km/h) time of just under 11 seconds with
gas mileage of about 14 mpg (around 17 L/100 km), average performance
for the time.
PLAN B: THE COMET
By May 1958, Jim Nance and Ben Mills were thinking about taking Edsel
in a completely new direction. Ford was then busily developing a new
compact model, which emerged as the 1960 Ford Falcon.
With small-car sales booming since the start of the recession,
Mercury-Edsel-Lincoln dealers were screaming for a compact of their own.
Nance and Mills decided that an M-E-L compact would make most sense as
an Edsel, which would preserve Mercury and Lincoln’s market position and
finally give the Edsel brand a unique product.
The board of directors approved the Edsel compact proposal, dubbed
“Edsel B,” in September 1958, shortly after Nance’s departure. The Edsel
B, later named Comet, would share the Falcon’s body and running gear,
but it would be somewhat bigger and a little more expensive, allowing a
higher level of trim and features. The plan was for the Comet to
supplement the larger Edsels for 1960 and then to replace them entirely
by 1961, demoting the E-Car from mid-priced model to upscale economy
car.
A final-year Edsel Ranger shows off Bud
Kaufman’s new styling. Not quite visible is the split grille that bears a
distinct (if probably coincidental) resemblance to the 1959 Pontiacs. (Photo © 2010 Fletcher6; used under a Creative Commons Attribution-ShareAlike 3.0 Unported license)
In any case, Edsel didn’t make it that far. The 1960 models debuted
on October 15, but dealers were extremely reluctant to order them. In
the first month, there were only 2,400 orders from nearly 1,500
franchises. By then, many Edsel dealers had either given up or gone
under, and most survivors also had Ford and/or Lincoln-Mercury
franchises. They had little interest in taking a chance on yet another
Edsel.
On November 19, Ford announced that it was pulling the plug. Sales
for the abbreviated 1960 model year amounted to 2,846, bringing total
Edsel production to 110,847 cars in three model years. Ford offered
hefty dealer incentives to clear stocks of unsold cars.
If Edsel had still been a separate division at that point, the Comet
might have died with it, but Ben Mills saw no reason to throw away a
promising new product. The Comet went on sale through Lincoln-Mercury
dealers in March 1960, about four months after the Falcon. (Although
contemporary reviewers tended to describe it as a Mercury, it was
technically a separate make with no other marque identification.) In its
first year, the Comet sold over 116,000 units, exceeding the entire
three-year total of its late parent. The Comet’s success inspired the
very successful intermediate Ford Fairlane and a whole genre of midsize cars.
The original Comet was styled by Bud Kaufman,
marrying a stretched version of the Falcon body with a formal roof
inspired by the 1959 Ford Galaxie. The Comet shared the Falcon’s 144 cu.
in. (2,365 cc) and 170 cu. in. (2,780 cc) sixes, but it rode a 5.5 inch
(140 mm) longer wheelbase and was about 100 lb (45 kg) heavier, making
it even slower than its Ford cousin. (Photo © 2007 Infrogmation; used under a Creative Commons Attribution 2.5 Generic license)
POSTMORTEM
There is no doubt that Ford lost a lot of money on the Edsel fiasco.
The most commonly cited figure is $250 million (equivalent to almost
$1.9 billion in 2010 dollars), which was the cost Ford announced for
launching the new model. Ford spent about $100 million on marketing and
the overhead costs of running Edsel as a separate division; as a point
of comparison, Ford said that re-consolidating Lincoln and Mercury in
1957 saved about $80 million a year in administration and overhead
expense. The estimated $150 million spent on factory expansion was
obviously not a total loss, since Ford continued to use that capacity
after the Edsel was gone.
Regardless of the actual dollar losses, the whole debacle had other
costs. First, we suspect that a fair number of the sales Edsel did
achieve came at the expense of Mercury. The first Park Lane sold poorly
and most Mercury sales in 1958-1959 were low-end models that competed
directly with Edsel in size and price. Second, not sharing bodies
between Mercury and Lincoln proved to be very expensive. The 1958-1960
Lincolns also lost money and Lincoln came very close to cancellation,
although it was saved by the new 1961 Continental.
Third, and perhaps most seriously, Ford never actually plugged the gap
between Mercury and Lincoln, so the E-Car’s original objective remained
unfulfilled.
Over the years, historians have laid the blame for the Edsel’s
failure on many things: the styling, the name, the market research, the
poor timing of its debut. There’s some truth to each of those
conclusions, but we think that the E-Car’s greatest failing was that
Ford lost sight of what it was supposed to be. The initial goal —
filling a hole in the lineup — was straightforward enough, but it was
completely overshadowed by nine years of political gamesmanship. When
the E-Car finally appeared, it was redundant. Even if the market had
been better, the best it could have done was to eat away even more at
Mercury’s market share. The Edsel didn’t simply fail; it never had a
chance.
The Edsel remained a sore subject within Ford for many years after
its demise. Lee Iacocca, who became general manager of Ford Division in
1960, convinced Henry Ford II to cancel the FWD subcompact Cardinal by
warning him that it would be another E-Car. The Edsel’s failure was
particularly bitter for Henry Ford; not only had it lost a huge amount
of money, it had made a joke of his late father’s name. Edsel — both the
car and the man — deserved better.
Source: ateupwithmotor.com