5 Dead Auto Brands And Why They Died
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5 Dead Auto Brands And Why They Died
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5 Dead Auto Brands And Why They Died
by Jean Folger
Sunday, June 20, 2010
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Ever since Henry Ford's Model T popularized automobiles in 1908, car companies have worked tirelessly designing, manufacturing, marketing and selling different models in the hopes that each would enjoy longevity in the marketplace. The brands associated with the major players have in recent years been challenged in terms of sales, and in some cases have been abandoned altogether. Ford Motor Company's (NYSE: F - News) June 2, 2010 announcement about its decision to discontinue the Mercury brand is the latest in a series of brand terminations. Whether out of financial necessity or the desire to streamline product lines, here are five auto brands that have faded away.
1. Mercury
Mercury is a brand of the Ford Motor Company that has been around for over 70 years. Ford recently decided in early June to end Mercury production before the end of the year. Mercury was originally created to offer Ford customers a premium vehicle. The continued popularity and corresponding sales of the Ford branded vehicles has left the Mercury brand weak, with many of its loyal customers now driving Fords.
Ford Motor Company has a 16% market share in the United States, with Mercury contributing only 0.8%. Mercury's market share has been flat or declining for years, and Ford Motor Company has decided to focus its attention on the Ford brand and its luxury Lincoln brand.
2. Hummer
In February, 2010, General Motors (Pinksheets: MTLQQ.PK - News) announced it would be phasing out its Hummer brand after an unsuccessful attempt to sell the brand to a Chinese manufacturer. Hummer, with roots that go back to the 1992 military Humvees, faced challenges in recent years as consumers became more conscious about vehicle gas mileage. Hummers are notorious gas guzzlers and took criticism from environmental groups pressing for more fuel efficient vehicles.
Hummer is one of several recent General Motors brands to be discontinued
3. Pontiac
Anyone who paid attention on the road in the 1960s and 1970s took notice of muscle cars - those sleek, high performance vehicles with V8 engines that could be heard from a mile away. A brand of General Motors, Pontiac made vehicles and muscle cars that defined an era with legendary models such as the GTO and Trans Am.
Though Pontiac was at one time one of the top selling brands in the United States, its leadership was unable to devise a strategy that would allow the Pontiac brand to continue. In business since 1926, Pontiac was discontinued in April, 2009.
4. Saturn
General Motors halted production of its Saturn brand in October, 2009 after a deal to sell to Penske Automotive Group failed. Saturn, with a vehicle line that included mostly small to mid-size cars, had been around since 1985. General Motors has enjoyed successful brands over the years, but Saturn struggled and was never profitable.
General Motors filed for Chapter 11 bankruptcy in mid-2009, and was the recipient of U.S. government TARP loans (bailout) following the economic meltdown of 2008. Under scrutiny to pay back loans and become a sustainable corporation, GM has been forced to streamline its brands and focus on the lines that have the most potential.
5. Oldsmobile
Another General Motors brand, Oldsmobile was founded as the Olds Motor Vehicle Company in 1897. Claiming to be the first company to mass-produce vehicles, Oldsmobile joined GM in 1908. Oldsmobile was the first brand to come with fully automatic transmissions, debuted in the 1940 Hydra-Matic models. Competitive with both Chevrolet and Ford, Oldsmobile's Cutlass series became the best-selling car in the United States in 1976. GM pulled the plug in 2004, citing that "Oldsmobile production has remained unprofitable" and that it would therefore end manufacturing.
The Bottom Line
Since the invention of the automobile, brands have come and gone. Many have faded away, but a few remain strong in the hearts of collectors and enthusiasts, making occasional appearances at auto shows, or in magazines and online venues. The auto industry, which produced more than 60 million vehicles in 2009, is the most significant economic sector in terms of revenues.
Facing rising fuel costs, changes in consumer spending habits and increased volatility in raw materials pricing - particularly steel - the auto industry has been forced to analyze its fleets in an attempt to streamline production. As automobile manufacturers respond to a dynamic climate, others may join the ranks of dead auto brands.
by Jean Folger
Sunday, June 20, 2010
provided by
investopedia_logo.jpg
Ever since Henry Ford's Model T popularized automobiles in 1908, car companies have worked tirelessly designing, manufacturing, marketing and selling different models in the hopes that each would enjoy longevity in the marketplace. The brands associated with the major players have in recent years been challenged in terms of sales, and in some cases have been abandoned altogether. Ford Motor Company's (NYSE: F - News) June 2, 2010 announcement about its decision to discontinue the Mercury brand is the latest in a series of brand terminations. Whether out of financial necessity or the desire to streamline product lines, here are five auto brands that have faded away.
1. Mercury
Mercury is a brand of the Ford Motor Company that has been around for over 70 years. Ford recently decided in early June to end Mercury production before the end of the year. Mercury was originally created to offer Ford customers a premium vehicle. The continued popularity and corresponding sales of the Ford branded vehicles has left the Mercury brand weak, with many of its loyal customers now driving Fords.
Ford Motor Company has a 16% market share in the United States, with Mercury contributing only 0.8%. Mercury's market share has been flat or declining for years, and Ford Motor Company has decided to focus its attention on the Ford brand and its luxury Lincoln brand.
2. Hummer
In February, 2010, General Motors (Pinksheets: MTLQQ.PK - News) announced it would be phasing out its Hummer brand after an unsuccessful attempt to sell the brand to a Chinese manufacturer. Hummer, with roots that go back to the 1992 military Humvees, faced challenges in recent years as consumers became more conscious about vehicle gas mileage. Hummers are notorious gas guzzlers and took criticism from environmental groups pressing for more fuel efficient vehicles.
Hummer is one of several recent General Motors brands to be discontinued
3. Pontiac
Anyone who paid attention on the road in the 1960s and 1970s took notice of muscle cars - those sleek, high performance vehicles with V8 engines that could be heard from a mile away. A brand of General Motors, Pontiac made vehicles and muscle cars that defined an era with legendary models such as the GTO and Trans Am.
Though Pontiac was at one time one of the top selling brands in the United States, its leadership was unable to devise a strategy that would allow the Pontiac brand to continue. In business since 1926, Pontiac was discontinued in April, 2009.
4. Saturn
General Motors halted production of its Saturn brand in October, 2009 after a deal to sell to Penske Automotive Group failed. Saturn, with a vehicle line that included mostly small to mid-size cars, had been around since 1985. General Motors has enjoyed successful brands over the years, but Saturn struggled and was never profitable.
General Motors filed for Chapter 11 bankruptcy in mid-2009, and was the recipient of U.S. government TARP loans (bailout) following the economic meltdown of 2008. Under scrutiny to pay back loans and become a sustainable corporation, GM has been forced to streamline its brands and focus on the lines that have the most potential.
5. Oldsmobile
Another General Motors brand, Oldsmobile was founded as the Olds Motor Vehicle Company in 1897. Claiming to be the first company to mass-produce vehicles, Oldsmobile joined GM in 1908. Oldsmobile was the first brand to come with fully automatic transmissions, debuted in the 1940 Hydra-Matic models. Competitive with both Chevrolet and Ford, Oldsmobile's Cutlass series became the best-selling car in the United States in 1976. GM pulled the plug in 2004, citing that "Oldsmobile production has remained unprofitable" and that it would therefore end manufacturing.
The Bottom Line
Since the invention of the automobile, brands have come and gone. Many have faded away, but a few remain strong in the hearts of collectors and enthusiasts, making occasional appearances at auto shows, or in magazines and online venues. The auto industry, which produced more than 60 million vehicles in 2009, is the most significant economic sector in terms of revenues.
Facing rising fuel costs, changes in consumer spending habits and increased volatility in raw materials pricing - particularly steel - the auto industry has been forced to analyze its fleets in an attempt to streamline production. As automobile manufacturers respond to a dynamic climate, others may join the ranks of dead auto brands.
Lead Lap
Joined: Mar 2006
Posts: 4,189
Likes: 16
From: NY/NJ
I think that in the days, when each was their own separate company and there was actual competition from over 10 different companies, it created a more robust industry and there was actually innovation. What happened was Ford, GM, and Chrysler were just gobbling up companies and putting them under their wings and duplicating various products amongst the makes that it diluted the market with "same" vehicles.
Is it any coincidence that all but the one (Mercury) were former GM makes? What company can focus when they have Chevy, GMAC, Pontiac, Oldz, Hummer, Saab, Saturn, Cadillac, etc. and on... you can't possibly have ten strong makes, so you have to cut the fat and now concentrate on three or four makes.
Hey, it's just how it is...
Is it any coincidence that all but the one (Mercury) were former GM makes? What company can focus when they have Chevy, GMAC, Pontiac, Oldz, Hummer, Saab, Saturn, Cadillac, etc. and on... you can't possibly have ten strong makes, so you have to cut the fat and now concentrate on three or four makes.
Hey, it's just how it is...
Lexus Fanatic
Joined: Oct 2003
Posts: 94,511
Likes: 261
From: Virginia/D.C. suburbs
1. Mercury
Mercury is a brand of the Ford Motor Company that has been around for over 70 years. Ford recently decided in early June to end Mercury production before the end of the year. Mercury was originally created to offer Ford customers a premium vehicle. The continued popularity and corresponding sales of the Ford branded vehicles has left the Mercury brand weak, with many of its loyal customers now driving Fords.
Ford Motor Company has a 16% market share in the United States, with Mercury contributing only 0.8%. Mercury's market share has been flat or declining for years, and Ford Motor Company has decided to focus its attention on the Ford brand and its luxury Lincoln brand.
Mercury is a brand of the Ford Motor Company that has been around for over 70 years. Ford recently decided in early June to end Mercury production before the end of the year. Mercury was originally created to offer Ford customers a premium vehicle. The continued popularity and corresponding sales of the Ford branded vehicles has left the Mercury brand weak, with many of its loyal customers now driving Fords.
Ford Motor Company has a 16% market share in the United States, with Mercury contributing only 0.8%. Mercury's market share has been flat or declining for years, and Ford Motor Company has decided to focus its attention on the Ford brand and its luxury Lincoln brand.
2. Hummer
In February, 2010, General Motors (Pinksheets: MTLQQ.PK - News) announced it would be phasing out its Hummer brand after an unsuccessful attempt to sell the brand to a Chinese manufacturer. Hummer, with roots that go back to the 1992 military Humvees, faced challenges in recent years as consumers became more conscious about vehicle gas mileage. Hummers are notorious gas guzzlers and took criticism from environmental groups pressing for more fuel efficient vehicles.
Hummer is one of several recent General Motors brands to be discontinued
In February, 2010, General Motors (Pinksheets: MTLQQ.PK - News) announced it would be phasing out its Hummer brand after an unsuccessful attempt to sell the brand to a Chinese manufacturer. Hummer, with roots that go back to the 1992 military Humvees, faced challenges in recent years as consumers became more conscious about vehicle gas mileage. Hummers are notorious gas guzzlers and took criticism from environmental groups pressing for more fuel efficient vehicles.
Hummer is one of several recent General Motors brands to be discontinued
3. Pontiac
Anyone who paid attention on the road in the 1960s and 1970s took notice of muscle cars - those sleek, high performance vehicles with V8 engines that could be heard from a mile away. A brand of General Motors, Pontiac made vehicles and muscle cars that defined an era with legendary models such as the GTO and Trans Am.
Though Pontiac was at one time one of the top selling brands in the United States, its leadership was unable to devise a strategy that would allow the Pontiac brand to continue. In business since 1926, Pontiac was discontinued in April, 2009.
Anyone who paid attention on the road in the 1960s and 1970s took notice of muscle cars - those sleek, high performance vehicles with V8 engines that could be heard from a mile away. A brand of General Motors, Pontiac made vehicles and muscle cars that defined an era with legendary models such as the GTO and Trans Am.
Though Pontiac was at one time one of the top selling brands in the United States, its leadership was unable to devise a strategy that would allow the Pontiac brand to continue. In business since 1926, Pontiac was discontinued in April, 2009.
The one cancellation here that I more or less agree with. Outside of the Australian/Holden-based GTO and G8, the Division produced little that was of interest. The G6 did have a folding-hard-top at a reasonable price, but with low overall build quality and an overly-cheap-plasctic, coal-mine-black interior. It would have been interesting to see the new Camaro debut with an F-Body Firebird twin, but there is at least one aftermarket company already doing a conversion.
4. Saturn
General Motors halted production of its Saturn brand in October, 2009 after a deal to sell to Penske Automotive Group failed. Saturn, with a vehicle line that included mostly small to mid-size cars, had been around since 1985. General Motors has enjoyed successful brands over the years, but Saturn struggled and was never profitable.
General Motors filed for Chapter 11 bankruptcy in mid-2009, and was the recipient of U.S. government TARP loans (bailout) following the economic meltdown of 2008. Under scrutiny to pay back loans and become a sustainable corporation, GM has been forced to streamline its brands and focus on the lines that have the most potential.
General Motors halted production of its Saturn brand in October, 2009 after a deal to sell to Penske Automotive Group failed. Saturn, with a vehicle line that included mostly small to mid-size cars, had been around since 1985. General Motors has enjoyed successful brands over the years, but Saturn struggled and was never profitable.
General Motors filed for Chapter 11 bankruptcy in mid-2009, and was the recipient of U.S. government TARP loans (bailout) following the economic meltdown of 2008. Under scrutiny to pay back loans and become a sustainable corporation, GM has been forced to streamline its brands and focus on the lines that have the most potential.
5. Oldsmobile
Another General Motors brand, Oldsmobile was founded as the Olds Motor Vehicle Company in 1897. Claiming to be the first company to mass-produce vehicles, Oldsmobile joined GM in 1908. Oldsmobile was the first brand to come with fully automatic transmissions, debuted in the 1940 Hydra-Matic models. Competitive with both Chevrolet and Ford, Oldsmobile's Cutlass series became the best-selling car in the United States in 1976. GM pulled the plug in 2004, citing that "Oldsmobile production has remained unprofitable" and that it would therefore end manufacturing.
Another General Motors brand, Oldsmobile was founded as the Olds Motor Vehicle Company in 1897. Claiming to be the first company to mass-produce vehicles, Oldsmobile joined GM in 1908. Oldsmobile was the first brand to come with fully automatic transmissions, debuted in the 1940 Hydra-Matic models. Competitive with both Chevrolet and Ford, Oldsmobile's Cutlass series became the best-selling car in the United States in 1976. GM pulled the plug in 2004, citing that "Oldsmobile production has remained unprofitable" and that it would therefore end manufacturing.
Last edited by mmarshall; Jun 20, 2010 at 01:15 PM.
Lexus Champion
Joined: Jan 2006
Posts: 1,762
Likes: 1
From: South FLA
I think I read somewhere that the G8 is supposed to be resurrected as a Chevy Caprice. 
I think that would be a good thing as I always thought that it was a decent looking car. Altough I've never driven one, it seemed that it had good build quality too.
If it wasn't for the Chinese market, I think Buick would have definitely been a part of this list.
I think that would be a good thing as I always thought that it was a decent looking car. Altough I've never driven one, it seemed that it had good build quality too.If it wasn't for the Chinese market, I think Buick would have definitely been a part of this list.
Lexus Champion
Joined: Apr 2007
Posts: 11,064
Likes: 105
From: Southeastern PA
I think I read somewhere that the G8 is supposed to be resurrected as a Chevy Caprice. I think that would be a good thing as I always thought that it was a decent looking car. Altough I've never driven one, it seemed that it had good build quality too.
If it wasn't for the Chinese market, I think Buick would have definitely been a part of this list.
I think that would be a good thing as I always thought that it was a decent looking car. Altough I've never driven one, it seemed that it had good build quality too.If it wasn't for the Chinese market, I think Buick would have definitely been a part of this list.
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Lexus Fanatic
Joined: Oct 2003
Posts: 94,511
Likes: 261
From: Virginia/D.C. suburbs
Lexus Fanatic
Joined: Nov 2008
Posts: 14,100
Likes: 1
From: tech capital
The reasons why are very subjective, the speculation endless.
Primarily they were business decisions (made by companies intending to be profitable, not charities) that needed to happen and all had a horrid history of huge multi-million dollar losses.
One thing is certain, all are dead.
Primarily they were business decisions (made by companies intending to be profitable, not charities) that needed to happen and all had a horrid history of huge multi-million dollar losses.
One thing is certain, all are dead.
Driver School Candidate
Joined: Jun 2010
Posts: 19
Likes: 0
From: CA
When I found out thru the wire that Holden was partnering up with GM to rebadge the G8 as a Pontiac with a LS Small Block V8 RWD over to our Shores, I was all over it. I waited for the 08's to go thru to see how well they did and see the reviews they received. When I saw all the good Reviews, I went to Pontiac, test drove it and bought it that same day. I've never looked back. Best buy I've made vehicle wise.
I was in the market for the IS350, 335i Sedan, G37 Sport Sedan and CTS. Boy I'm glad I waited, saved me quite a few pennys. The cars I test drove were great, except the price, not including options, yikes!
And yes, the "G8" now Caprice, has been brought back as the new Chevrolet Police Vehicle.
http://www.g8board.com/forums/showth...hlight=caprice
I was in the market for the IS350, 335i Sedan, G37 Sport Sedan and CTS. Boy I'm glad I waited, saved me quite a few pennys. The cars I test drove were great, except the price, not including options, yikes!
And yes, the "G8" now Caprice, has been brought back as the new Chevrolet Police Vehicle.
http://www.g8board.com/forums/showth...hlight=caprice
Lead Lap
Joined: May 2010
Posts: 746
Likes: 4
From: NJ
It's simple, they were deadwood. Part of the reason that the big 3 got into so much trouble is that they had brand structures set up like it was still 1957 and Detroit basically owned the US Car market.
Back then, things were simple...
A handful of people bought XK150s, MGs, Beetles, etc.
Over 90% of the people out there bought domestic cars.
Cheap cars: Chevrolet, Plymouth, Ford, back then they were called the "Low Priced 3".
Next, you had the "Medium Priced" cars. They started with Mercury, Pontiac and Dodge, and moved up to Oldsmobile, Buick and Chrysler.
Then you had Cadillac, Lincoln and Imperial.
Imports simply did not exist as a major factor in the marketplace, so instead of Fusion/Camry/Altima/Malibu/Accord it was Chevy vs Ford vs Plymouth and the people that today would look at an Avalon or a Maxima or an ES350 would buy a Buick or fancy Mercury.
Back then, things were simple...
A handful of people bought XK150s, MGs, Beetles, etc.
Over 90% of the people out there bought domestic cars.
Cheap cars: Chevrolet, Plymouth, Ford, back then they were called the "Low Priced 3".
Next, you had the "Medium Priced" cars. They started with Mercury, Pontiac and Dodge, and moved up to Oldsmobile, Buick and Chrysler.
Then you had Cadillac, Lincoln and Imperial.
Imports simply did not exist as a major factor in the marketplace, so instead of Fusion/Camry/Altima/Malibu/Accord it was Chevy vs Ford vs Plymouth and the people that today would look at an Avalon or a Maxima or an ES350 would buy a Buick or fancy Mercury.
Lexus Fanatic
Joined: Oct 2003
Posts: 94,511
Likes: 261
From: Virginia/D.C. suburbs
It's simple, they were deadwood. Part of the reason that the big 3 got into so much trouble is that they had brand structures set up like it was still 1957 and Detroit basically owned the US Car market.
Back then, things were simple...
A handful of people bought XK150s, MGs, Beetles, etc.
Over 90% of the people out there bought domestic cars.
Cheap cars: Chevrolet, Plymouth, Ford, back then they were called the "Low Priced 3".
Next, you had the "Medium Priced" cars. They started with Mercury, Pontiac and Dodge, and moved up to Oldsmobile, Buick and Chrysler.
Then you had Cadillac, Lincoln and Imperial.
Imports simply did not exist as a major factor in the marketplace, so instead of Fusion/Camry/Altima/Malibu/Accord it was Chevy vs Ford vs Plymouth and the people that today would look at an Avalon or a Maxima or an ES350 would buy a Buick or fancy Mercury.
Back then, things were simple...
A handful of people bought XK150s, MGs, Beetles, etc.
Over 90% of the people out there bought domestic cars.
Cheap cars: Chevrolet, Plymouth, Ford, back then they were called the "Low Priced 3".
Next, you had the "Medium Priced" cars. They started with Mercury, Pontiac and Dodge, and moved up to Oldsmobile, Buick and Chrysler.
Then you had Cadillac, Lincoln and Imperial.
Imports simply did not exist as a major factor in the marketplace, so instead of Fusion/Camry/Altima/Malibu/Accord it was Chevy vs Ford vs Plymouth and the people that today would look at an Avalon or a Maxima or an ES350 would buy a Buick or fancy Mercury.
Last edited by mmarshall; Jun 23, 2010 at 06:36 AM.
CL Community Team
Joined: Oct 2003
Posts: 4,335
Likes: 61
From: California
One thing, though, that you were forgetting, is that, back then, the line between "domestics" and "imports" was much sharper and more defined than it is now. With some rare exceptions like the Buick Opel, Ford Cortina, and Plymouth Cricket, "American" vehicles were designed, built, and sold in America. "Imports" were designed/built overseas, and imported into the U.S. for sale. You knew exactly what you were getting, and where it was built. The industry is no longer like that..........vehicles, no matter what their nameplates or nationality of the automaker, are designed, built, and sold all over the world. It is so complex that even many professional auto consultants and journalists can no longer keep up with it........and what car comes from what origin. In general, because of the intelligence and competence of many of our posters, we, here at CL and CAR CHAT, do a pretty good job of keeping track of it, considering its admitted complexity.
Same thing with Toyota. Toyota is Japanese through and through. Yes, Toyota has plants here in the U.S., Canada, Mexico, Asia and all over the world but Toyota is still Japanese. If Toyota built a plant on Antartica does it make it an Antartican company?
If Toyota built a plant on Mars, produces cars in the same plant built on Mars does it make it a Martian company???
Last edited by Trexus; Jun 23, 2010 at 11:36 AM.
Intermediate
Joined: May 2008
Posts: 392
Likes: 0
From: CA
I remember reading an interview with some Oldsmobile VPs. They said that they knew they were doomed one snowy day in MI. It snowed bad that day, but they got into a SUV and went to the Oldsmobile CEO's house to pick her up and go to work. When they got to her house, she wasn't interested in going into work that day. Then they realized that their leader's heart wasn't really into the company and several months later they were shut down.