FROM CRISIS TO OPPORTUNITY: 1975 Adenine Valence
In the early 70s, Martin Penrose was looking to expand Adenine’s share of the US automotive industry. Adenine had covered the key markets - it had a full-size sedan (the Veranda), a pickup (the Reverence), and a performance car (the Vindicator). But Japanese and European companies were growing their US market share even faster than Adenine. Their strategy was effective - the imports almost exclusively targeted the budget compact sector. Cars such as the Honda Civic, Toyota Corolla, and Volkswagen Beetle could walk all over the American companies who had little to no presence of their own in this segment.
Penrose knew that he could not compete with the imports directly. These companies were already well-established in their home countries and could produce high volumes of inexpensive cars in their factories. Adenine had made a decent amount of money in its first decade of existence, but it hardly had the resources to compete in the budget sector.
But Penrose realized that there was still a gap in the market. In order to drive down prices as low as possible, the import cars had tiny engines and barebones interiors. These cars were simply basic transportation, not something to be proud of owning. Penrose had an idea: what if Adenine built a small, compact car, but gave it the same level of comfort and performance expected of larger sedans?
Concept design and prototyping for the new car, which would be called the Valence, began midway through 1972. The challenge early on was designing an engine that would be small enough to fit in a compact chassis but powerful enough to outperform existing cars on the market. Penrose figured that a more advanced overhead cam design, coupled with multiple carburetors and a rich fuel mix, would be enough to do the job. But when the oil crisis hit in 1973, everything changed.
While Penrose was devastated at first, he soon realized that the crisis could actually be a golden opportunity for Adenine - and the new car would be the perfect way to seize the opportunity. Immediately, fuel economy became a top priority for the new car. But this became a problem: in order to improve economy, performance had to be sacrificed. With a lean fuel mix and small carbs, plus the power-sapping advent of catalytic converters, the small engine could only muster a measly 65hp - hardly any better than existing engines on the market. Penrose was stumped. But in the back of his mind, he remembered that there was one other thing he could try - and he knew just who to talk to about it.
Inline Designs was founded in 1965 in Philadelphia, PA by two young mechanical engineers with a love for engines. Much like Adenine’s early roots, they began as a humble car repair and tuning shop and worked on engines for their friends and neighbors. As the company grew, they began to design bespoke engines, especially for performance and racing cars. Unlike other American companies who simply made their engines bigger, Inline Designs had a different philosophy: Do more with less. Smaller, OHC inline engines could perform better at a much lower weight than the traditional V8 pushrod engines of the day.
There was one innovation that Inline Designs was particularly fascinated with: turbocharging. They were quick to recognize the enormous potential of this technology, as huge power outputs could be made from very small engines. In the early 70s, an Adenine Vindicator fitted with an experimental turbocharged engine came to dominate Pennsylvanian racing leagues - when it wasn’t blowing up on the track.
When Penrose heard about the wondrous things coming from the company in Philly, he invited Inline Designs to show off some of their work. The young engineers had already spent many years trying to work out the issues of turbocharging, especially reliability and turbo lag. Penrose was very impressed. He realized that Inline Designs might just be able to provide the solution that Adenine needed. Thus, a lasting partnership was born.
Inline Designs did not have a lot of experience designing engines for economy, but they knew that their more-with-less philosophy could achieve excellent performance with much better efficiency than standard engines of the day. The engine that Inline Designs came up with was radical in many ways. The 1.6L inline four engine used a single overhead cam with four valves per cylinder, mechanical fuel injection, and a novel turbocharger design. Unlike the large, slow-spooling turbos that came before, Inline Designs went with a small turbine and compressor and a very modest boost pressure of 0.45 bar. This increased efficiency and reduced turbo lag, making the engine surprisingly drivable at low speeds. Inline Designs also included their prototype intercooler technology, which reduced knocking and greatly improved reliability. Mechanical injection was too complex and expensive for mass production, so it was replaced with a two-barrel eco carburetor in the later stages of development.
With Inline Designs’s turbocharging expertise, the finalized engine was able to meet all three requirements: excellent fuel economy, good performance, and compact dimensions. It produced 80hp at 5000RPM and a constant 95 lb-ft of torque from 2400 to 4000RPM. The 1.6L engine produced comparable performance to the 2.3L Ford Pinto and Chevy Vega engines, with lower weight, considerably smaller size, and greater efficiency.
For the rest of the car, Adenine engineers had to balance a premium, high-class feel with affordability and manufacturability. To maximize trunk space, a torsion-beam rear suspension was selected. Standard features included front disc brakes, power steering, a good interior, a radio and tape player, seat belts, and airbags. The emphasis on safety proved prescient, as competitors such as the Ford Pinto soon developed a reputation for poor safety while the Valence was regarded highly despite its size. A premium, upscale interior and a luxurious tape player were also options.
The combination of out-of-the-box thinking from both Adenine and Inline Designs proved to be a winning formula. The Valence was able to achieve 30mpg in a car that was comfortable, safe, and surprisingly quick. It could accelerate from 0-62 in as fast as 11.6 seconds with the 5-speed manual, which was several seconds faster than its competitors. Even when fitted with the 4-speed auto and fully loaded, the Valence could still make the run in 12.7 seconds - faster than most other cars in its class. Pricing began at a very reasonable $9600 (+20%) and rose to $14000 (+40%) for a fully loaded version. The car was described as a bargain for the amount of quality and comfort it delivered.
The Inline Designs 1.6L I4 was the first successful turbocharged engine used in a non-sports car. Drivers found the engine to be unlike anything they had driven before. Turbo lag was much improved from 60s turbo cars, but with the slow eco carbs, the throttle response was still very poor. Certainly, drivers would have preferred a more conventional naturally aspirated engine, but it was impossible to argue with the remarkable fuel economy. Perhaps even more impressive was the refinement of the engine. The muffling effect of the turbo made the engine whisper-quiet, with only a light turbo whine giving away its operation. And while the turbo lag was bad for darting in and out of traffic, the slow and steady buildup of boost made accelerating from a standstill incredibly smooth.
In an era of soaring gas prices and long lines at the pump, the Valence’s class-leading efficiency and its unique position in the market made it a smashing success. Full-sized American sedans were hopelessly inefficient, and more and more people turned to smaller, more efficient vehicles. While the import cars satisfied the budget crowd, the Valence was perfectly positioned to capture the market of people who wanted a car with both high class and high efficiency. As gas prices reached a peak in 1979, the Valence broke all sales records and became one of the best-selling cars in America.
The success of the Valence rocketed Adenine - and Inline Designs - into the spotlight as innovative, forward-thinking automotive companies. While the Big Three flustered, Adenine gained market share as quickly as the Japanese imports. With the Adenine Valence, American customers had a car that was comfortable, affordable, and all-American - but also achieved excellent fuel economy. In addition, the Valence was highly influential and pioneered technology that was ahead of its time. It was an innovative, well-designed car, that launched at the perfect time.
Now that he had built his masterpiece and turned his startup company into a huge success, Penrose felt very satisfied with his career. Within a few decades, he had grown his small Pittsburgh car shop into a huge, nationally visible juggernaut. His innovation and willingness to embrace new ideas had set a strong precedent for the company, and made a noticeable impact on the US auto industry. But Adenine was now a far-reaching corporation, and in his old age he found it more and more difficult to oversee all the different aspects of the company. In 1980, he retired at the age of 61.
