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The Fall of 15 American Car Companies over the Years 

The early days of the automobile were a time of explosive innovation. Between 1900 and 1919, around 2,000 American car companies operated, producing nearly 98% of the world’s vehicles. But this Wild West period of car manufacturing wouldn’t last. A combination of factors squeezed the market, leading to a dramatic consolidation, with the number dropping …
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The early days of the automobile were a time of explosive innovation. Between 1900 and 1919, around 2,000 American car companies operated, producing nearly 98% of the world’s vehicles. But this Wild West period of car manufacturing wouldn’t last. A combination of factors squeezed the market, leading to a dramatic consolidation, with the number dropping to 15 in the 1970s and then a little above 10 in the last decade. Let’s take a look at which ones couldn’t make it in the long run and why.

Studebaker

Studebaker Company/Wikipedia

What started as a wagon-making business became one of the first American car manufacturers. Studebaker was known for innovation and sleek designs, introducing electric vehicles in 1902 and gasoline models in 1904. Despite its forward-thinking approach, Studebaker battled financial struggles for decades. Import competition and internal issues ultimately led the company to its end in 1967.

Packard 

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Packard was synonymous with luxury and prestige, and cars like the Packard Clipper and Twin Twelve were status symbols for the wealthy. However, the Great Depression and rising competition from European automakers severely impacted Packard. Despite a brief merger with Studebaker, Packard ceased production in 1958, and in 1962, it closed its doors. 

Pontiac 

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Headquartered in Pontiac, Michigan, Pontiac carved its niche in the Motor City by offering thrilling muscle cars at an affordable price. Iconic models like the Firebird and GTO cemented its reputation for excitement. However, General Motors, Pontiac’s parent company, phased out the brand during a major restructuring effort in 2010.

Duryea

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Brothers Charles and Frank Duryea are credited with building and successfully testing the first gasoline-powered car in America in 1893, with models like the Phaeton gracing early roads. However, Duryea struggled to keep pace with the rapidly evolving auto industry, and the company shut its doors by 1907. 

Oldsmobile

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Based in Lansing, Michigan, Oldsmobile pioneered mass production techniques and introduced features that became industry standards, like the curved-dash design with models like the Cutlass and Delta 88. However, General Motors, Oldsmobile’s owner, faced challenges differentiating the brand from its other offerings. Sales steadily declined throughout the 1990s, leading to Oldsmobile’s death in 2004.

Saturn

Reedred/Wikipedia 

Saturn aimed to revolutionize the industry with a no-haggle pricing strategy and a focus on exceptional customer service, embodied in models like the SL and Vue. Unfortunately, Saturn struggled to compete with established brands with a lack of new exciting models, and its unique dealership model proved unsustainable. General Motors ultimately shuttered the brand in 2010. 

Mercury

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Ford created Mercury in 1938 specifically to compete in the mid-market segment. Mercury offered stylish and comfortable cars like the Monterey and Cougar, often sharing design elements with other Ford models but with a more upscale feel. However, after decades of fluctuating sales due to the absence of a clear brand purpose, Ford phased out Mercury in 2011 as part of a larger strategic shift.

DeSoto

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This brand belonged to the Chrysler Corporation and specialized in affordable vehicles for the middle class. DeSoto was considered everyman’s Chrysler, and the lineup included popular models like the Airflow and Adventurer. However, increased competition and internal restructuring within the company led to DeSoto’s demise in 1960.

Apperson 

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Apperson manufactured and offered automobiles from 1901 to 1926, and the name was associated with innovative engineering. This automotive manufacturer was among the first to adopt features like front-wheel drive and powerful six-cylinder engines in vehicles like the Silver-Apperson and the Jack Rabbit. Despite these advancements, Apperson fell victim to the industry consolidation of the early 20th century. 

Plymouth

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Famous for its practicality and reliability, Chrysler created Plymouth to compete with more affordable brands like Chevrolet. It was introduced to the market in 1928 and continued to sell thousands of cars for decades until it finally closed its doors in 2001. Many people felt the car lacked a unique identity and was considered outdated.

DeLorean 

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DeLorean is best known for its stainless-steel clad DMC-12 sports car, immortalized in the movie Back to the Future. However, the DeLorean story is more about unfulfilled potential. Founded by John DeLorean, the company was plagued by financial troubles and eventually embroiled in a scandal that tarnished its reputation until it went out of business in 1982. 

Essex

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While Essex enjoyed moderate success in the early 20th century, increased competition and the desire for more modern designs ultimately led to the brand’s demise in 1933 after it became part of Hudson Motor Car Company. The company focused on offering enclosed passenger compartments for more comfort.

Tucker 

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Tucker was a company built on the dream of Preston Tucker, an engineer who envisioned a car of the future. With its innovative design and focus on passenger safety, the Tucker Torpedo was a true outlier. However, Tucker’s unconventional business practices and a stock fraud trial led to the company’s swift demise in 1949, with only 51 cars made. 

Fisker

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This company entered the scene in the late 2000s, focusing on luxury electric vehicles. Its sole production model, the Karma, was a visually stunning plug-in hybrid. Despite significant public and private investments, Fisker Automotive kept missing deadlines, eventually ceasing operations in 2012 with only 2450 cars produced after it struggled with battery supply issues and financial mismanagement practices. 

American Motors Corporation 

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AMC resulted from the merger of Nash and Hudson in 1954. The brand carved a niche for itself by offering unique and fuel-efficient cars like the Gremlin and the Pacer. Yet, AMC struggled to compete with the Big Three American automakers. It was eventually acquired by Chrysler in 1987 and renamed as the Jeep Eagle Corporation. 

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