Today’s infographic comes from TitleMax and it looks at 14 now-defunct car brands and the circumstances that took them from highways to bygones.
These are only a selection of a much longer list of car brands that have not survived to see the present day. What accounts for the churn rate of these brands?
Bold Experiments, Boondoggles, and Burnouts
Some car brands, like Tucker and Saturn, introduced new ideas that the market simply didn’t care for, didn’t perform as well as the competition, or were too ambitious for the industry climate. Others, like Edsel and DeLorean, met swift ends as they hemorrhaged money far faster than their owners anticipated. Even more brands were simply folded into the ever-expanding portfolios of either Ford or General Motors, the two biggest auto conglomerates ever to rule the roads.
Bad Timing, or Worse Economy?
Car sales rise and fall with broader economic trends because they are tied into so many different variables: raw materials, production costs, labor costs, oil prices, and interest rates among others. We can look at two time periods in which the combination of these conditions caused many of the brands on this list to fail. Post-war Doldrums (1950-1958) Based on the timeline above, we can see that 1950s were a terrible time for the smaller players in the auto industry. The explanation as to why so many brands declined over this decade has to do with the highly competitive, oligopolistic business practices of market leaders Ford and General Motors. Both of these market titans were locked in a battle to lower prices by taking advantage of economies of scale, while wooing customers who were feeling the economic pressures of a postwar recession. Smaller volume manufacturers like Packard and Studebaker could not keep up, even when they attempted to merge. As a result, these and many other smaller brands were forced out, or absorbed into the portfolios of one of the “big two.” Same Car, Different Name (1998-2008) A similar stretch of declining sales plagued the late 1990s and early 2000s, as the trend of “badge engineering” caught up with manufacturers. Rather than designing new models at high cost, conglomerates like GM simply engineered new brand “badges” and marketed the same basic models under a variety of names like Pontiac, Plymouth, Mercury, or Oldsmobile. The same tactic was later used to take mid-market designs, such as the Ford Fusion, and style them for a luxury audience as a new model – in this case, the Lincoln Mk. Z. Badge engineering curbed the appeal of a number of American brands under the GM and Ford portfolios. The nail in many of their coffins was the major auto industry downturn in 2008. That year, GM restructured as it underwent Chapter 11 bankruptcy. As a result, GM removed the majority of its badge engineered brands, including many of those listed above, from dealerships in the following years. on These faulty airbags, installed by 19 different automakers including BMW and Toyota from 2002 to 2015, can explode when deployed and have led to numerous tragic accidents. Their recall affected 67 million airbags (including Honda’s vehicles above) and has been known as the largest safety recall in U.S. history. Over the past four decades, there have been over 22,000 automobile recalls in the United States. In this interactive piece, Chimdi Nwosu uses data from the National Highway Traffic Safety Administration to visualize the types of automobile recalls over the past 40 years, the companies with the most recalls, the components that were recalled the most, and, most importantly, their impacts on people.
Breaking Down U.S. Automobile Recalls
Whether a recall affects specific vehicle components, equipment, or vehicles as a whole, it affects the lives of millions of automobile users. When combined, these numbers ramp up exponentially. The U.S. alone has seen a total of 22,651 recalls over the past 40 years, impacting more than one billion people. Almost 72% of these people were affected by nearly 20,000 vehicle recalls, while around 19% were impacted by over 2,000 equipment recalls during this period. Comparatively, the 442 tire recalls and 220 child seat recalls affected significantly less, but still a total of 96.9 million people. While an inconvenience to many, the recall of these faulty vehicle parts saves many more from unfortunate incidents that may have occurred if left unchecked.
Minor and Major Recalls
One of the largest recalls in history took place in 2014 when General Motors—the manufacturer with the highest total of recalls in four decades—recalled millions of vehicles including the 2005-2007 Chevrolet Cobalt, 2007 Pontiac G5, and 2006-2007 Chevrolet HHR, amongst others. The reason for this recall was a faulty ignition switch that caused the vehicle’s engine to shut down while driving, disabling safety systems including airbags. This fault led to the death of hundreds of people. However, not all recalls are this severe. BMW, for example, recalled just four vehicles in December last year because one of the four bolts in the driver’s backrest was not attached properly. Similarly in 2020, Ford recalled some of its vehicles due to a faulty door latch. While this recall inconvenienced over two million users, it was less likely to lead to severe consequences if left unchecked.
A Safer Future?
The number of automobile recalls over the past four decades has seen a steep rise. As have car safety standards. While recalls could hint at the risks involved in taking your car out for a drive, they also indicate manufacturers taking responsibility for their faulty commodities, and affect a very small percentage of vehicles on the road. To improve automobile safety, the NHTSA proposed a New Car Assessment Program in 2022, which provides vehicle users with safety ratings for every new vehicle. This five-star safety rating program rates the vehicles’ safety features, crashworthiness, and resistance to rollover. With self-driving cars now also entering the mix, we need to stay informed about vehicle safety to keep our vehicles, our streets, and ourselves safe in the future.
