Brand Relevance: Making Competitors Irrelevant - always yours

110 BRAND RELEVANCE
The Chrysler Minivan
In 1974 a gifted Ford engineer, Hal Sperlich, with the support
of marketing - oriented President Lee Iacocca, proposed that
Ford build a minivan. Their research indicated that the market
would be large if the step - up height were low enough to appeal
to women, if the car could fi t into a garage, and if there were
a nose with an engine in front in order to provide protection
for the driver in case of an accident. However, it would require
a signifi cant investment in tooling, and despite very promising
research data such a new concept was not a sure thing. Further,
the existing Ford platforms were all rear - wheel drive, and to
get the roominess that would make the product most desirable
required a front - wheel - drive system, which would be costly to
develop. Henry Ford II, the CEO and part - owner of Ford, did
not want to invest in the idea, especially at a time when Ford
was somewhat fi nancially stressed, and turned it down. He was
infl uenced in part by his experience with the 1950s Edsel, which
was one of the most disastrous car introductions ever; was reliant
on the opinion of a risk - averse fi nance team; was irritated
with the visibility of Iacocca and did not want another reason
for him to gain the spotlight; and had a commitment to large
cars, observing, “ Small cars, small profi ts. ”
About fi ve years later, Sperlich and Iacocca, having each
been fi red by Henry Ford, in some part because of their championing
of the minivan, were at Chrysler. Both still had confi -
dence in the minivan project and Iacocca as CEO now had the
authority to go ahead with it. They were in the right place at
the right time. Chrysler had just fi nished developing a front -
wheel - drive platform, which was the basis for the successful
K - car series. Further, Chrysler dominated the market for the
full - size van, a truck - like vehicle too large for a garage with a
share of some 45 percent, which gave them market experience
and credibility. Their van product successes were based on car -
like conveniences, such as power windows, good stereos, and