Throughout the years, there have been many established automakers that either went bankrupt or were absorbed into larger companies. This happened because of low sales figures, trouble with production, or simply that the automaker’s popularity declined.
The automotive world is saturated with carmakers and each one wants to be the best in their respective classes. The biggest battles are usually between the affordable brands like Volkswagen, Toyota, and Hyundai, and the premium manufacturers, such as BMW, Mercedes-Benz, and Audi. Yet, even some of the most popular car companies, which were all the rage at one time were gone the next – due to not adapting to circumstances or reasons beyond their control. Some manufacturers get bought out by bigger companies, allowing them to continue production, but most of the time the bigger company just uses the bankrupt company’s resources to help itself.
So, while many automakers were extremely popular in their prime, there is always a chance that they could go bankrupt or become part of a bigger company. Here are 10 defunct car manufacturers from the past and the reasons why they failed.
10 Studebaker
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Studebaker was established in 1852 by the Studebaker brothers as a horse-drawn carriage production company. Studebaker began producing automobiles in 1897, and they officially came into being in 1911. Things started out roughly, with the first instance of an automotive strike occurring in 1913.
Studebaker changed their way of doing things and by 1916, released their first reliable car. By 1920, they were already known for their rugged cars which lasted a long time. Business went well for the next 30 years, but by the 1950s, Studebaker was in trouble. They merged with various companies to remain relevant in the shadows of Ford and GM, but to no avail. Studebaker ceased to be in 1966 after GM bought out the company, yet their legacy still exists thanks to the 5000 trees planted in Illinois, spelling out STUDEBAKER in a field.
9 Oldsmobile
Oldsmobile was one of the oldest automakers in the world. The company was established in 1897 as the Olds Motor Vehicle Company and lasted all the way until 2004 as a division of General Motors – fitting in above Chevrolet and Pontiac, but below Cadillac and Buick. Oldsmobile produced more than 35 million vehicles during the time it existed, with around 14 million being produced at its Lansing, Michigan plant alone.
Oldsmobile produced some great cars over the years, ranging from the Olds 8 Coupe to the Starfire, 442, and Toronado. In the 1980s and 1990s, many Oldsmobile models were rebadged versions of lower-end GM products. The company was eventually shut down in 2004 after the last Alero sedan left the assembly line.
8 Packard
Packard existed between 1899 and 1958 and was known for building high-quality automobiles before World War II. Owning a Packard was considered to be prestigious, like an American version of a Rolls-Royce. Packard's cars had many innovations during their time, including the modern steering wheel, air-conditioning in a passenger car, and one of the first production V12 engines.
After World War II, Packard struggled to survive as an independent automaker against the ‘Big Three’, and the introduction of their V8 well after those main rivals did not help with popularity. Packard merged with Studebaker in 1953 to keep production going, but by 1958, both companies had become obsolete.
7 Pontiac
Pontiac was founded in 1925 as a companion make for GM’s Oakland brand. By 1933, Pontiac had surpassed Oakland’s popularity and completely supplanted the company. Pontiac was billed as the performance variant of Chevrolet, with marketing focusing more on selling the lifestyle associated with owning a Pontiac, rather than the car.
Pontiac continued making a variety of mainstream and performance vehicles until 2008, when GM decided to get rid of the brand – the same way it had done with Oldsmobile. By 2010, GM had built the last Pontiac model, leaving the last four remaining GM marques – Chevrolet, Cadillac, Buick, and GMC.
6 DeSoto
DeSoto was an American automobile brand founded in 1928 by Walter Chrysler as a brand to compete against Pontiac, Studebaker, Hudson, and Willys. DeSoto was designed to fall in below Dodge within the Chrysler hierarchy, but still above Plymouth. DeSoto did well between 1929 and 1942 but was halted due to wartime restrictions, before resuming production in 1946.
DeSoto vehicles sold well in the early 1950s, but by 1958, DeSoto took a hit in sales thanks to the economic climate. In 1960, Chrysler drastically decreased the number of models sold and by 1961, the brand was dissolved, with factories instructed to use up all existing parts. Anyone who ordered a DeSoto after the stock was depleted, were either reimbursed or were given the option of a Chrysler Windsor.
5 Plymouth
Plymouth was another brand started by Chrysler in 1928 and saw massive success in the 1940s and 1950s thanks to the low cost compared to Ford and Chevrolet models. Plymouth produced some great muscle cars in the 1960s and 1970s and remained a high seller well into the 1980s.
By the 1990s, most Plymouth models were rebadged Dodges, which sullied the integrity of the brand and as a result, the company dropped in popularity. Plymouth was officially dissolved in 2001. There were plans by Chrysler to sell the PT Cruiser as a Plymouth, but luckily that never happened.
4 Edsel
Edsel, another company that only lasted a few years, was founded by the Ford Motor Company in 1956 and sold large sedans, convertibles, and wagons. The company was named after Henry Ford’s son and despite a $2.3 billion (in today’s money) investment by Ford for development, production, and marketing, the company was quietly killed off in 1959.
Many reasons were given for Edsel’s demise – lack of reliability, durability, terrible quality, questionable design, and uncompetitive pricing. One publication called Edsel’s vehicles, “the wrong car at the wrong time”, while another stated that, “the aim was right, but the target moved”. Only around 118,000 Edsels were built during a three-year production run.
3 Mercury
Mercury was a sub-brand of the Ford Motor Company, designed to slot above the affordable cars from Ford, but below the higher-end models from Lincoln. Mercury was founded in 1938 and survived all the way until 2011, when it finished producing the Grand Marquis.
Most Mercury models were uprated or luxury versions of Ford models – such as the Mercury Monterey and Mercury Cougar, the former was a slightly redesigned Ford Crestline, and the latter was a fully redesigned Ford Mustang. Even though Mercury is no longer producing cars, Ford still keeps the name active through a registered trademark.
2 AMC
The American Motors Corporation was founded during the merger of the Nash-Kelvinator Corporation and the Hudson Motor Car Company in 1954. At the time, this was the largest corporate merger in US history. The company lasted until 1988, before Chrysler bought it and integrated the assets into its own ever-expanding conglomerate.
AMC built some great cars, most notably the Marlin, the AMX, and the Javelin. They also built some truly terrible cars like the Gremlin and the Pacer – both of which are among the most disliked cars ever made. AMC also made America’s first true crossover in the form of the Eagle – a lifted version of a sedan and wagon – which featured all-wheel-drive.
1 Tucker
Tucker was a car company that started out building racing cars between 1932 and 1939. In 1939, the founder of the company, Preston Thomas Tucker, had an idea to create a high-speed armored car for use during wartime. In 1941, he went into the aviation business. Finally, in 1944, the Tucker Corporation began working on a car.
The result was the Tucker 48, as it was named after its model year debut. However, the car was called the Tucker Torpedo during the development stages. It was a revolution in design and engineering, but thanks to public scrutiny and an investigation by the SEC, Tucker’s stock plummeted and only 58 cars – including the various prototypes – were produced. Tucker went out of business in 1950, but the Tucker's innovations in safety were adopted by other automakers, a form of flattery for the sadly defunct automaker.