“Before 1955 the compact cars, which had then included Rambler, Hudson Jet, and Volkswagen, were not outstanding sales successes. Their suggested list prices, and their actual retail prices, were comparatively high in relation to those of the popular Chevrolet-Ford-Plymouth group. With the rise in prices of the traditional low-priced cars of the Big Three in the latter 1950’s, the compact cars became more competitive, securing advantages in some cases.
The initial upsurge was more apparent in rising foreign car sales but was accompanied by increased Rambler sales. Compact car sales climbed slowly at first but then rose rapidly after 1956 and in a sense displaced some of the sales volume that otherwise would have gone to full-sized makes.
The retail price gap, of course, may have been somewhat less than that indicated by suggested list price differences. Volkswagen, for example, generally sold at its suggested list price while most domestic makes were discounted from list price after 1952, thus tending to close at retail the gap indicated by suggested list prices. Also, although Rambler’s 1958 and 1959 models and Studebaker’s 1959 model carried list prices somewhat below those of Chevrolet, Ford, and Plymouth, they were at the time selling at prices approximately equal to or slightly lower than those of the traditionally low-priced three.”
— Charles E. Edwards (1965, p. 136)
RE:SOURCES
- Edwards, Charles E.; 1965. Dynamics of the United States Automobile Industry. University of South Carolina Press.
ADVERTISING & BROCHURES:
- oldcarbrochures.org: Chevrolet (1959)
Hat tip to JK for suggesting this book, which offers a more data-oriented and nuanced take on the postwar auto industry than brand-oriented histories written by car buffs. More on this book later.
Also see ‘Bigger, glitzier, more powerful: The auto industry’s holy trinity’
I think the price of a 1957 Chevrolet 150 two-door sedan was $ 1,985.00 and the all-new 1957 Ford Custom tw0-door sedan m.s.r.p. was $ 2,142.00. The 1960 m.s.r.p of Robert McNamara’s base Ford two-door sedan was $ 1,912.00 compared to the full-size Ford Fairlane Business coupe price at $2,424.00, so for the car-buying public, the Falcon could save them around $ 500.00 at purchase and more in gasoline with the Mileage-Maker Six.
We know that Ford lost over $ 250-million on the ramp-up, production and the dealer-network establishment of approximately 110,000 Edsels between 1957 and late 1959 (1960-model). The only upside was that Ford had the production capacity to assemble 410,000 Falcons and 117,000 Comets for the 1960 model year. In 1959, all U.S. full-size cars had a wheelbase of 118-119 inches or more.
What if G.M., Ford and Chrysler had realized that abandoning the 114-115-inch wheelbase was less than ideal in 1956 rather than 1963 ? Romney gambled on the Rambler on a 108-inch wheelbase. While Ed Cole was largely correct that the average American would not stick with the VW Beetle, the Corvair. while interesting technically, was not the right answer, as the Chevy II should have been the car unveiled in 1959 for the 1960-model year.
Even though the Lark was introduced in the fall of 1958, it was a full-size car with the overhangs cut-off and capped, so it was a hastily-designed car with the same engines offered in the previous years cars (except the Packard V-8). I give G.M., Ford and Chrysler for joining A.M.C. by engineering unit bodies for their compacts, which was another feature poor Studebaker could not afford for its Lark based on the 1953 sedans.
The “hay-day” for Rambler started in the spring of 1957 was when it had a decent product with little discernable competition, it’s newly restyled body (read: “less odd”) was ready, and all the expenses of supporting the old Nash and Hudson lines were gone. The “Eisenhauer recession” was just beginning, which supported the idea of national belt-tightening and George Romney was about to step into the limelight as a “celebrity” genius auto automotive executive.
The actual sale prices of Ramblers and Larks BEFORE the 1960 model year likely held up better for the dealers and manufacturers than after the onslaught of the big 3’s compact competition. The 1959 Studebaker-Packard Annual Report (their fiscal year was the calendar year) showed a large 29 million dollar profit – the 1960 report showed and profit of just under 1 million (yes, there were other factors for this too, but price competition was one – no wonder the board insisted on quick diversification). The ’59 Lark price was very competitive, beginning at $1,925.
Forgive me Steve:
Mr. Duval –
The ’58 “full-size” Studebaker has been accused of not quite being full sized – and rightly so, because it was narrower (by about 6 inches) than the standard Chev in 1958. But this made the existing body shell more of a good thing for it’s “New dimension in Motoring” ’59 Lark, when it was shortened by 27 inches, restyled to look attractively “perky” to most folks, and sold almost 139,000 units vs almost 54,000 the year before (model year).
Yes it was done relatively fast – it had to be, because holding the line would have been suicide. But, it was done cleverly and well, and like the Gremlin, most of the engineering was to just modify what had already been proven and in previous production years. By the way it, a side benefit was that components like transmissions, axles, brakes and suspension, designed to fit heavier cars, were retained, so the Lark ended up with some very durable components and things like sensible 15 inch wheels which also allowed 11 inch front brakes on V8’s (a ’64 GTO only has 9.5’s).
The six cylinder engine had originally been designed to haul a car of about 2400 pounds – so only tweaking was necessary there (the conversion of it to OHV configuration was 2 years away) – and the V8 made the Lark into a performer that the public enjoyed and the competition only wished they could match.
Thank the gods that Studebaker did not have the funding to go to unibody at this time!! The Hawks may have been dropped and the Avanti (a fiberglass-bodied car that REQUIRED a full frame) may never have been built if these lower-production cars could not have used components also compatible those in a “bread-and-butter” sedan/wagon line!
For many years, the Studebaker Drivers Club (close to 10,000 members – and the Avanti Owners Association Int’l has a further 1,500 or so) has enjoyed large world-wide membership because it’s cars and trucks, with their full frames, survived. Hudsons and pre’63 AMCs are not well represented at old car meets partially because when they got rusty (remember Ramblers with collapsed shock towers were not uncommon in the rust belt), they were not as fixable by owners and lost their usability).
With the cost of new vehicles at an unprecedented level now, the only place to go for affordable vehicles is the used car market. There are virtually no entry level cars or trucks available from any manufacturer selling in North America. You want small, cheap and economical, you need to visit FB Marketplace and other similar sites. Also, with up to 84 months financing, are new car buyers keeping their vehicles that long before trading in? Who is going to be able to trade in only a few years from now when prices will likely be higher still? And who can afford to trade up? Is it really worth the money to move up to a Cadillac, Lincoln, Lexus, Audi?