Re: Merger of Nash/Kelvinator, Packard & Hudson
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Thanks Steve, excellent synopsis and critique. That might be the same book I've been reading every Saturday morning in the library while my daughter is taking music lessons. Excellent account of what happened.
I checked the Standard Catalogue for 1950 FoMoCo pricing. Ford sedans were priced around $1500-$1600, Mercury was $2000, Lincoln Capri was $2500 and Lincoln Cosmo was $3200. So yes, there was a $500 spread throughout the line-up. Looking at the annual volumes for each company one can see how Ford left much opportunity on the table in the middle and upper end of the market, they simply were not competitive with GM. Maybe the Ford brand name had been so strong for so many years that people couldn't dissociate Mercury and Lincoln from it. Or maybe the product simply wasn't good enough. Noted how Mercury was originally supposed to fall below E-car but somehow they got switched. Could it have been a case of existing fiefdoms being protected and promoted? The company might have benefited from Packard and Hudson both, the Packard at the top and Hudson between Mercury and Lincoln. But thinking about your comments, had either joined Ford they would have lost their uniqueness as you said. Maybe not initially but over time. The Continental Mk II was an interesting play on Ford's part, an attempt to one-up Cadillac. That they failed points to the difficult nut the upper end of the market was to crack. They made a great car and it would have made for a great series including sedan and convertible but the business case simply was not there. Nor was there a business case for the wonderful Eldorado Brougham of 1957. I think the lesson was that, besides the need to be a bit shrewd with content and craftsmanship even in this rarefied segment, the bodies and manufacturing needed to be based on a somewhat lower priced / higher volume product to amortize costs.
Posted on: 2015/4/25 8:49
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Re: Merger of Nash/Kelvinator, Packard & Hudson
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Home away from home
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Hi Paul
"...Mercury was $2000, Lincoln Capri was $2500 and Lincoln Cosmo was $3200. So yes, there was a $500 spread throughout the line-up." Non-Cosmopolitan 1949-51 Lincolns affectively sold against Roadmaster, New Yorker and Super Eight until the 1952 Lincolns were pushed upmarket in price, if not size and horsepower. The one positive of the later $1,000 price gap was that those disinclined to GM or Chrysler, could resort to Commodore-Hornet or Clipper-Cavalier for their next carmake step-up. "Looking at the annual volumes for each company one can see how Ford left much opportunity on the table in the middle and upper end of the market,....." Especially in that immediate postwar decade, Ford Motor Company was all about "FORD......and our couple other minor makes....". Some of that was from trying to rebuild from the damaged mess left by Old Henry's late chaotic years; some about a young, inexperienced management team feeling their way through the process without tanking an industrial giant. They understood the Ford nameplate was their bread-'n-butter and its success was their very survival, the others makes were only peripheral entities. "Noted how Mercury was originally supposed to fall below E-car but somehow they got switched. Could it have been a case of existing fiefdoms being protected and promoted?" "Fiefdoms?", absolutely! Not only did the miss-reading of demographic trends but also the intramural political machinations and intrigues of giant-sized egos derail any chances for the Edsel's success. After years of Mercury management playing second fiddle to Ford directives, now it was going stand by and watch a new division created from whole cloth get all the expensive new tooling, development and promotion for a higher prestige line. Resentment must have fairly seethed throughout the Division even at the mention of the Edsel usurping what should have been Mercury's birthright as a junior Lincoln. Pile on top of that how Ford dealers viewed trying to sell against the usual competition, now had a new Edsel dealer muscling in with his Ranger versus the Fairlane 500 V8. Anecdotes told of the many a Ford or L-M dealer who, when 'generously' granted an Edsel franchise for 1959 after the local upstart bailed to sell Ramblers, promptly parked his Edsel demonstrator on the back line, left the promotional materials boxed. "The Continental Mk II was an interesting play on Ford's part, an attempt to one-up Cadillac. That they failed points to the difficult nut the upper end of the market was to crack." The Continental demonstrated that Ford was truly back as a market competitor, that it could to build the very finest. Problem was most of the upper end segment wasn't interested in such rarified specialties or could even afford such cars then, at least in profitable volumes. "I think the lesson was that, besides the need to be a bit shrewd with content and craftsmanship even in this rarefied segment, the bodies and manufacturing needed to be based on a somewhat lower priced / higher volume product to amortize costs." The profitable upper end of the volume luxury segment in 1956 began near $6,000-tapered off $7,000. Building those as extensions of standard models such as 60 Special, Eldorado Seville and Biarritz was the prefect approach to fill the coffers with cash....and generate cache. The average twenty percent price premium of the 60 Special over the 62 sedan was smart marketing for minimal addtional tooling cost. Packard was on the right path with the Caribbeans but no premium sedan missed so much potential business. Chrysler noticed, added the LeBaron to Imperial for 1957, developed it into what Packard could well have done beforehand to create more profits and prestige. Would Hudson and/or Packard been treated any better than Edsel or enjoyed exclusive models had they become part of the FoMoCo empire? "The Ford Family of Fine Cars" : Ford, Mercury, Hudson, Lincoln, Packard,.......maybe Continental, too. The next product cycle would have brought the 'interlopers' in line with the rest of the 'family', their independent content vanished for certain. Steve
Posted on: 2015/4/26 14:09
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.....epigram time.....
Proud 1953 Clipper Deluxe owner. Thinking about my next Packard, want a Clipper Deluxe Eight, manual shift with overdrive. |
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Re: Merger of Nash/Kelvinator, Packard & Hudson
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Home away from home
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Just came across this film made by Ford in lead up to Edsel intro.
youtube.com/watch?v=89Z9F-svFAk Am a bit suspicious of the accuracy of the company's recounting of the 10 years leading up to the Edsel intro but this historical revisionism aside, the data shown starting around 6 minutes into the film appears to be a good description of the market realities of the day. One thing pointed out is that GM's brand pricing resulted in much overlap, which is why Edsel pricing was so expansive. It occurs to me that what GM was successfully doing in the medium priced field by offering different brands to give the market styling choice, could have been used by FoMoCo in the luxury field to beat GM at its own game. Lincoln and Packard on same body shell but with different styling. Including Torsion-Level would have prevented Chrysler from making such a big deal of its '58 cars shown in these films. youtube.com/watch?v=YBNWBHYp41w youtube.com/watch?v=zrKAVfS3Ui0 Here's a blue version of earlier red Packard and now with door outer panels unique from Lincoln, and a backlight. FoMoCo in mid-1956 could have bought the Packard portion of Studebaker-Packard for very little money and made a '58 Packard out of the '58 Lincoln for $10-15 million. The Packard dealers could have sold the new Edsel too, reducing the $250M start-up cost of that brand. True, Packard would have become a corporate contrivance and I shutter to think what a 1980 Packard on shared platform with Lincoln, Grand Marquis and Crown Victoria would have looked and performed like. Nor would Packard be in good shape today, if current Lincoln is any guide. But we would have enjoyed a close approximation of the planned Predictor styling and a good run of cars through the Sixties and maybe the Seventies. Attach file: ![]() ![]()
Posted on: 2015/5/24 11:46
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