As we saw in our first installment, in January 1930, a few weeks after the stock market crash of October 1929, Cadillac introduced its fabulous V-16. After a few months of strong sales, its popularity suddenly dipped sharply. The cause was not yet the economic crisis, but the introduction of a new internal rival, the Cadillac V-12. This week, the story of the 1931-1937 Cadillac V-12 and the 1938-1940 Cadillac V-16.
The 1920s were a time of unprecedented prosperity in the United States, with fortunes made practically overnight by means both legitimate and otherwise. By the end of the decade, many automakers were preparing a new breed of ultra-luxury cars aimed at that rich new market — not realizing that the Great Depression was about to bring the party to screeching halt. This week, we examine one of the most famous of those elite cars: the 1930-1937 Cadillac V-16.
It will not have escaped even the casual observer that the companies formerly known as the Big Three automakers — GM, Ford, and Chrysler — are in bad, bad shape. GM lost $37 billion in 2007. Ford’s operating losses were $2.7 billion overall, but they lost $5 billion on their automotive operations. Chrysler, which is now owned by Cerberus Capital Management, is not obliged to share their annual results (not being publicly held), but they aren’t doing a lot better. As of this writing, the three companies are asking for at least $34 billion in federally guaranteed loans, a new bailout. In this last installment of our series, we weigh in on the state of Detroit.
In 1981, Chrysler had $1.2 billion in federally backed loans and an array of new products. Problem solved? Not exactly. In the third installment of our series on the Chrysler bailout, we examine the corporation’s rocky road back to solvency — and how it ended up on the ropes again less than a decade later.
While there is a popular misconception in some sectors of the auto industry that you can become profitable simply by cutting your operating costs to the bone, the truth is that a car company lives or dies by the strength of its products. That was the hard truth that Chrysler faced in 1981, as it trepidatiously introduced the models that would determine its fate: the K-cars and the 1981 Imperial.
Throughout its 85-year history, the Chrysler Corporation has often found itself engaged in a coquettish flirtation with doom. Although Chrysler sometimes led the American industry in engineering innovation, a combination of ill-considered product choices, quality problems, and misguided management have put it on the ropes more than a few times. The list of disasters is long: the brilliant but commercially moribund Airflow of the 1930s; the catastrophic quality-control issues of the late 1950s; the ill-fated “downsizing” of 1962. The one on everyone’s mind of late, however, is the late-seventies financial crisis that sent ostensible free-market conservative Lee Iacocca to Washington, hat in hand — looking for a bailout.
In our recent article about the Packard One-Twenty, we talked about how not to build a brand. This week, we’ll look at the postwar rebirth of BMW and how the company built one of the world’s most successful automotive brands. We’ll also take a look at one of your author’s personal favorite cars: the 1965-1975 BMW E9 coupe, including the 2000CS, 2800CS, and the legendary BMW 3.0 CSL.
In Hunter S. Thompson’s 1971 novel Fear and Loathing in Las Vegas, the narrator, Raoul Duke, and his attorney, Doctor Gonzo, set out from Los Angeles to Las Vegas in a rented red convertible they dub the Great Red Shark, blazing across the desert, hopped up on enough controlled substances to fill a shopping cart, in search of the American Dream. The novel’s Great Red Shark was a Chevrolet, not a Dodge, but there would be few better choices for a fast run from L.A. to Las Vegas than this week’s subject: the rare and rocket-like 1960 Dodge Polara D-500.
In late 1959, Ford Motor Company released the smallest car it had sold in the U.S. since the 1930s: the 1960 Ford Falcon. The Falcon proved to be the most successful of Detroit’s new breed of compact cars and it gave birth to many spin-offs and derivatives, from the Ford Mustang to the plush Granada. More significantly, though, the Falcon marked the flash point of a conflict between two different philosophies of management and two very different men: Lido Anthony Iacocca and Robert Strange McNamara. This week, the history of the 1960-1970 American Ford Falcon.
Performance car enthusiasts tend to be a somewhat humorless bunch, whether you’re talking about Ferraristes, old-school muscle car fans, or import tuners. If they have one thing in common, it’s that they’re none too keen at being laughed at. That’s why it’s remarkable that one of the premier icons of the muscle car era is one of the most irreverent of them all: a budget Supercar named after a cartoon bird — the Plymouth Road Runner. This is its story.
When we last saw the Plymouth Barracuda, its second generation had floundered (if you’ll excuse the expression) in its efforts to challenge the popular Ford Mustang, ranking near the bottom of the “pony car” sales race despite more attractive styling and stronger engines. Troubled but undaunted, Plymouth took a third swing, with results that surprised even them. Here’s the story of Plymouth’s 1970-1974 E-body Barracuda and Plymouth Duster.