Collateral Damage

How Ralph Nader killed Volkswagen’s first Phaeton.

(c) diariomotor

America had enjoyed a good Second World War from an economic perspective, and this set the stage for strong growth in the 1950’s. US GDP rose by 81% over the decade, while GDP per capita rose by 53%. Increasing affluence and a growing suburban population had supported strong auto sales, and US cars had grown larger and more ostentatious, reflecting the confidence of the era. 1959 marked the peak in the fashion for such cars, with their large tailfins and extravagant chrome laden exteriors.

There was, however, a growing appetite for smaller and more economical cars that the Big Three had largely neglected. These were often bought as second cars for wives or teenage children. This market was being satisfied by imports such as the Renault Dauphine and Volkswagen Beetle, and what would later become known as subcompact models from the smaller US manufacturers such as AMC, Nash and Studebaker, who hadn’t the financial or technical resources to Continue reading “Collateral Damage”