The 1950s were the golden age of the American automobile industry. With General Motors, Chrysler and Ford leading the way, some of the most iconic models in history came out of the gate. However, not all success comes from good decisions, as evidenced by the launch of the Ford Edsel in 1957, often considered the worst car in history, according to The Economist.
Despite Ford's growth at the time, the company faced internal difficulties. Henry Ford, the legendary founder, had already retired, leaving the company in the hands of his son Edsel Ford. However, tragedy struck the family when Edsel died prematurely in 1943, leaving a leadership vacuum. At that time, Henry Ford II, the founder's grandson, took over the company.
Surrounded by a group of young World War II veterans known as the Whiz Kids, Ford II planned to create a new model that would appeal to the American middle class. The idea was simple: to offer the masses a modern, powerful, and affordable car. But the project, known as the Ford Edsel, turned into a disaster.
With an investment of $250 million and five factories dedicated to the model, Ford launched a massive marketing campaign. However, when the Edsel was finally unveiled to the public on September 4, 1957, enthusiasm quickly turned to disappointment.
The car's design was widely criticized, with the front grille being ill-fitting and putting off many buyers. Furthermore, the Edsel was riddled with mechanical faults, from transmission problems to door and steering failures. Even innovations, such as an automatic transmission operated by the steering wheel, did not work as expected.
The high price tag of $2,500 to $3,800, coupled with high fuel economy, made matters worse. Although Ford expected to sell thousands of units a day, the reality was very different. Over the next two years, the company sold only 116,000 units, a number far from expectations. For every car sold, Ford lost about $3,000.
In 1959, Ford discontinued the Edsel, having lost $350 million, equivalent to $3 billion today. The Edsel has gone down in history as one of the biggest corporate failures of all time.
Today, there are only about 6,000 Edsels left in the world, some of which are prized among collectors, not for their performance, but for the history and lessons this car continues to teach the business world.
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