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First written on December 04, 2009

Revised on Friday, February 19, 2010

New Product Development - Flops of auto models in the last 15 years and why they failed?

New product development (NPD) is a very expensive proposition. In the auto industry, it is their lifeline. I am giving below 10 of the new models that flopped in the last 15 years. 

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1995 Ford Explorer

1997 GM EV1 - from GM

1997 Plymouth Prowler - from GM

1998 Fiat Multipla

2000 Ford Excursion 

2001 Jaguar X-Type 

2001 Pontiac Aztek  - from GM

2002 BMW 7-series 

2003 Hummer H2 - from GM

2004 Chevy SSR - from GM

It would be observed that GM accounts for 5 flops out of 10. Ford - 2. Fiat - 1. BMW- 1 and Jaguar - 1. It will also be noted that there is no presence of any Japanese models in the above list. 

Why the above models failed?

  1. Ford Explorer failed because the tires manufactured by Bridgestone exploded and the cars burst into flames on impact.

  2. It was more profitable to sell the high margin, gas guzzling SUVs and the model was futuristic, ahead of time. The users were always worried about battery life and when it would drain out. Recharge facilities were few. Most were afraid to take their cars out in the night. Lastly, there was no engine noise and it moved like a ghost, catching people unaware. 

  3. Plymouth Prowler was underpowered by a V-6 and not V-8 engine, sales volume was low. Resale value could not be established. It was not good looking. 
  4. Fiat came out with a great idea of 6 seat car. 3 in front and 3 in back. The problem was looks. The car looked ugly like a frog. Customers want their cars to look sleek, like a leopard or shark. Fat and Blunt looking cars rarely sell. 
  5. Ford Excursion flopped because it was found to be unstable when pulling trailers. It failed in its main purpose because families wanted to go on excursions. 
  6. Jaguar X-Type failed because 'most of the time was spent learning the million and one ways that an X-type could fall apart. Engines seized, interiors collapsed, transmissions exploded, and driveshaft's—oh, the countless, countless driveshaft's—ate their U-joints so regularly that you could set your watch by them' according to a user.
  7. Pontiac Aztek was under powered and over priced, a repeat of Pontiac Prowler. It looked ugly and no one wanted to travel in it.
  8. The BMW 7 series got bad reviews because of various product problems after 90,000 miles. The cars did perform well when new.
  9. The problem with Hummer is it is too high. Small built drivers could not see small children on the side walk and one child got killed. Because of its higher 'metacentric' height, it has the risk of toppling at high speeds while negotiating a sharp bend against strong cross winds. 
  10. Chevy SSR failed because GM wanted it to be a pick up, a car and a convertible. They forgot one product cannot be everything to all people. It also looked very ugly like Pontiac Aztek. 

Please click here for 8 Principles of new auto models development

Written by Madhavan Gopalachary

The views, opinions and interpretations are personal. Sponsorship does not mean that the sponsors endorse them.

© Copyright, Feb-10 . MMG Communications. Without prejudice. All rights reserved 

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