AUTOS: The $250 Million Flop

Detroit had expected it for months; last week Ford Motor Co. finally had to make it official. The company dropped its medium-priced Edsel, introduced only two years ago. Said Ford, in a pained announcement: "Retail sales have been particularly disappointing, and continued production of the Edsel is not justified, especially in view of the shortage of steel."

Ford's hand was forced by a stock prospectus issued by the Ford Foundation, which plans to sell another 2,000,000 shares of Ford stock (worth some $155 million) in order to diversify its holdings. Included in a list of company products was a footnote...