The impact of Ford, GM (Chevrolet), and other companies on the shutdown of many car manufacturers

The automotive landscape has been greatly shaped by the rivalry between two giants, the Ford

Motor Company, and General Motors (Chevrolet). These industry titans have influenced and

revolutionized the global automobile sector throughout the 20th century.

While their competition has fueled innovation and progress, it has also posed challenges for

other players, leading to the closure of several businesses. What led these giants to sustain this

market for years?

Let's dive into the dynamics of this competition and its far-reaching consequences.

?? Ford

Ford's Strategic Streamlining: Amid challenging times, Ford implemented the "One Ford" plan, streamlining its brand portfolio for efficiency. Significant divestitures include Aston Martin, Jaguar, Land Rover, Volvo, Mazda, and the discontinuation of Mercury.

Ford's Lean Approach: Ford's philosophy revolves around efficiency and innovation through a reduced brand count. The shift from 27 vehicle platforms in 2007 to a mere two (Ford and Lincoln) in 2021 highlights its commitment to consolidation.

?? General Motors

General Motors' Multi-Brand Landscape: General Motors boasts a diverse lineup with brands like Chevrolet, Buick, GMC, Cadillac, and the iconic Hummer. GM has divested brands such as Oldsmobile, Pontiac, Daewoo, Saturn, and Saab, aligning with a strategic vision.

GM's Evolutionary Moves: GM's history reflects strategic adjustments, shedding underperforming brands and aligning with market demands. Despite initial indications of brand significance, GM's divestments echo Ford's streamlined strategy.

The automotive industry has other notable winners.

Honda: Honda has long been synonymous with reliability and longevity, earning a stellar reputation for crafting vehicles that stand the test of time.

Hyundai: Hyundai's commitment to design excellence shines through its stylish and contemporary vehicle lineup, catering to diverse tastes and preferences.

Kia: Kia has carved its niche with vehicles that boast striking aesthetics, marrying form with functionality to create a visual allure on the roads.

Brands that were unable to endure such competition.

Studebaker (1852-1966): The fierce price wars of 1953, driven by automotive giants GM and Ford, posed a significant threat, pushing Studebaker to the brink. A 1954 merger with Packard extended Studebaker's existence but ultimately proved disastrous, marking the end of a 114-year journey.

Mercury (1938-2011): Conceived as a mid-priced offering between Ford and Lincoln, Mercury aimed to strike a balance between affordability and luxury. The merger with Lincoln in the mid-1940s set the stage for iconic models like the Marquis and Grand Marquis, capturing hearts from the 1960s to the 2000s. Despite initial popularity, Mercury's aging demographic and narrowing appeal led to its eventual discontinuation in 2011.

Hummer (1992-2010): Born from military prototypes, the Hummer, derived from the Humvee, entered civilian life in 1992, backed by GM's acquisition from AM General. With a robust start and global distribution, Hummer faced challenges related to fuel economy and safety concerns. Despite Arnold Schwarzenegger's encouragement, failed sale deals and shifting consumer sentiments led to Hummer's closure in 2010.

This journey teaches us that no one is immune to turbulence. Even Ford and GM almost went bankrupt during the 2008 crisis.

In the ever-evolving automotive saga, the choices made by industry leaders reverberate across the global market. Whether it's Ford's lean philosophy or GM's multi-brand narrative, the dynamics of brand portfolios influence the industry's trajectory. What are your thoughts on this strategic dance between Ford and GM? Share your insights! ??