SMALL CAR MARKET

Press, Volume XCVIII, Issue 28866, 10 April 1959, Page 14

SMALL CAR MARKET

SPURRED by the reports that Ford may release its small car sooner than anyone expected, General Motors and Chrysler have made large-scale transfers of manpower in their American factories. Ford may now have its new small model in the showrooms by September, and estimates of its cost are around 2000 dollars (£994). Besides its model shortly to reach the market, Ford has confirmed its confidence in the future of the small car by planning a slightly larger model to be marketed in 1960 under the Edsel name. Both General Motors and Chrysler want to pick their own timing for the announcement of their small cars, and not follow Ford’s footsteps. They are also fearful that any premature

announcement may lead to potential customers holding back for their economy cars. Last month, a General Motors spokesman said they had not only passed the point of no return in their planning for a small car but were aiming to beat Ford to the market. A short-wheelbase General Motors model was considered probable by mid-September. The Big Three recognised long ago that the small car was in America to stay, but the reason for their late moves was governed by the stage of their designing sections. Large models for 1961 and beyond are already on the drawing boards, and the dies for this year’s engines were being prepared at least two years ago. Hence a complete and sudden switch was impossible, coupled with the danger that the small car market might be swamped within a few months. Meanwhile, sales of American Motors’ Rambler and the Studebaker Lark of StudebakerPackard are bringing these companies right back into the running. They are producing to capacity, stealing the plums until the Big Three bring their guns to bear.