The well-founded reports were finally confirmed. Ford Motor Co. announced last week that it will introduce a small or compact car during the 1960 model year, "barring changes in the market or other circumstances." Thus it became the first of the Big Three to go on record, though crash programs of all the companies for small cars have been an open secret for weeks (TIME, Feb. 2).
Actually, Henry Ford II and Chairman Ernest Breech had not intended to say anything about Ford's economy car until it was ready to be marketed, lest it keep people from buying this year's cars. What forced the company's hand was the fact that the Ford Foundation is preparing to sell some 2,000,000 shares of Ford Motor stock. Ford lawyers decided that the registration statement on the sale, required by the Securities and Exchange Commission, would have to take note of Ford's plans for the small car. Under SEC's full-disclosure requirement, prospective stock purchasers must be told of any major corporate change in the works—especially one that could conceivably run up losses. So Henry Ford II decided to spring the news to stockholders at the same time that the registration was filed.
Follow the Leader. Though the company gave no details about its six-cylinder, 108 in.-wheelbase car, it is known to be seriously considering producing an economy-size Edsel for the 1961 model year in addition to the compact car. It already has clay-model prototypes of a conventional-size Edsel and a compact Edsel. The compact Edsel would be a slightly larger version of next fall's compact Ford, might be brought out under another name in 1961 if Ford decides to continue producing the standard Edsel. The small Edsel or its counterpart could take the place of cheaper Ford six-cylinder cars, fill the gap between Ford's small car and its more expensive models, e.g., the Fairlane. In 1961 Ford may add a station wagon to its scheduled small car.
Ford's announcement is sure to put pressure on competitors to announce definite plans for a small car. Only the day before the Ford announcement, Chrysler President Lester ("Tex") Colbert revealed that Chrysler has already spent $40 million to develop a six-cylinder small car with a 105-110-in. wheelbase. With a slap at Chevy's rear-engine small car, Colbert said the engine in Chrysler's car will be in front, "where it belongs." But Colbert emphasized that Chrysler will not decide whether to produce its cars until "late summer," added that he would withhold public Announcement as long as possible to avoid hurting sales of 1959 Chrysler models. Said he: "If our competitors come along with a small car, we'll come right along with them—but we don't want to be the fair-headed boys and be there first." Detroit did not see any chance that Colbert could be first, is convinced that he cannot market a small car before 1960, later than the target dates of both Ford and General Motors.