Edsel: Auto Industry’s Legendary Disaster

If you are to ask auto experts what is the legendarythe future.
disaster in the industry, they would probably mentionEdsel’s failure could be likened to Segway’s
the Edsel - not a person, not a car, but a defunct Fordplight. Marshall Brain of How Stuff Works has this to
division.say: “One thing we might compare it to was the
Summer of 1957 was a milestone for the Ford Motorlaunch of the Segway six years ago. Remember the
Co. It marked the start of a big ad campaign that hadhuge amount of hype that surrounded the Segway?
ticked the Americans’ fancy. The Dearborn-basedThe Segway was going to change the world, but no
automaker decided to offer a new car division and theone knew what the Segway was. Then, on the day
company has advertised it heavily. The new division isof announcement, we all saw that the Segway was a
offering product lines that are not that common.scooter.”
To note, that time the last one to be set up in anBrain added, “Sure, it was a self-balancing scooter
American auto company was the manufacturer of theand that was cool. But there was no way the
Saturn multi rib belt, a division of General Motors Corp.Segway could match the hype that preceded it, and
But Ford’s freshly established division was enougheveryone was disappointed. That is exactly the kind of
to raise interest among consumers. Shoppers thoughtthing that happened to the Edsel.”
Edsel was new and would be exciting. The marketingFord’s defunct division had some notable features.
campaign of the automaker has lured consumers byBut the features weren’t enough to lure shoppers
showing them nothing about the new division’sinto purchasing. “The look of the car was definitely
lineup. The ad only shows a hood ornament or a carunique, with a huge grill shaped like the letter ‘O.’
underneath a tarp.And the automatic transmission was controlled by
The ad campaign was such a hit. This has madebuttons located in the centre of the steering wheel. It
consumers look forward to seeing the forthcomingwas just kooky enough to turn people off rather than
fresh lineup. Sept. 4, 1957 arrived. That was theto turn them on. Also, people were expecting
scheduled launching of the cars. The consumers,something completely new, while in reality the Edsels
excited about the new cars, visited Edsel dealershipwere built on top of an existing Ford chassis. That was
nearby to take a glimpse of the new offerings fromnot very exciting to people,” noted Brain.
the auto giant.Next month, watchers in the industry will
But the moment they saw the lineup, excitement died.commemorate the lesson behind the Edsel tragedy.
As such, the great disaster was the fact that no oneSome experts blame it to the untimely launch date.
was purchasing. And that marked the beginning of theOthers put the blame on the size and kookiness of the
end for the Ford division.car. A number of critics blame it on quality problems.
Edsel was a solid proof that outstanding marketingBut the combination of all those things made Edsel
campaign does not always result in overwhelmingcollapse.
profits. As a fact, it could mean injurious loss. Though itThe word Edsel has become synonymous with failure.
is hard to determine how the auto disaster happenedA terrible failure every automaker must consider in
– a successful ad campaign enticing no shoppersorder to prevent it from recurring.
– the fact stays. It happened. And it could happen in