The economic downturn of the 1980s gave the automobile industry difficulties right out of the starting gate. Among others, the Chrysler and American Motors companies were nearly bankrupt; even Ford, the leader of the American automobile industry, was in financial trouble. It simply was not the right time for consumers to purchase brand-new automobiles, particularly after competition from European and Asian auto-makers began to rise.
Consumers in the 1980s needed smaller automobiles. Compact cars quickly became the norm, mostly because they cost the consumers less to maintain and fuel, but also because the streamlined designs resulted in higher efficiency vehicles. For this reason, Japanese motor companies like Mazda and Toyota flourished, adding to the import market in the United States and Europe and giving the national car makers major runs for their money.
The epitome of efficiency and aerodynamics in vehicles came began in 1983 when Ford began to redesign their existing models. The idea was to create a small, sleek automobile that would top the competition in efficiency by providing decreased drag and increased airflow capacity without forcing the consumer to pay astronomical prices. Shortly thereafter, the Thunderbird was born, bringing the automobile industry into a new era of design and functionality. The Taurus was everything that Asian auto makers had produced and more. Ford had another hit with the Taurus in 1985, again implementing the streamlined design in an attempt to appeal to the needs of the consumers. With its new additions to the world of automobile design, Ford picked itself up from tatters and rebuilt itself, revolutionizing the automobile industry and changing the way the world looked at vehicles.
It was during this time that GM, a consistent player in the automobile industry, began to suffer. With Ford, Chrysler, Mazda, and Toyota churning out efficient compact vehicles, GM attempted to redesign their existing models, but their attempts did not bear much fruit. Their vehicles were nowhere near as sleek as those offered by the competition and sales took a nosedive in the latter half of the 1980s.
Despite Ford's newly discovered success, European car makers had better luck during the early and mid-1980s. The yuppie culture had emerged and their tastes led them to stylish European car makers like Cadillac, Mercedes-Benz, and BMW. Admittedly, whereas the more privileged consumer drifted toward imported luxury vehicles, the average consumer seemed to prefer the smaller, more practical vehicles offered by manufacturers like Ford and Mazda.
For many consumers, life in the 80s meant saving pennies wherever possible and purchasing the most economical, practical vehicle. For this reason, smaller vehicles like the remodelled Ford lines flourished, helping to revitalize the American car industry in its ongoing competition with European car makers.
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