How to Kill a Car Company
Erin Nedala Mk II GT12
Erin’s top end luxury limousine in the 1970s was called the Nedala. The ill-fated Mk II variant launched in 1978, having been conceived by a board of directors who had no idea what the market wanted.
The Nedala Mk II was an incredible advanced car at the time in terms of luxury features. On the top end GT12 trim, features included electric reclining seats, a champagne cooler, a specially designed Marantz sound system - that was, at the time, the most expensive in-car audio system ever fitted to a production car - in car telephone and more.
It’s most famous feature, however, was its 395 hp 5.4l V12. It could push this behemoth from 0-60 in 7.7 seconds and onto a top speed of 151 mph. It was the fastest four-door production car ever made at the time.
But it came at the wrong time, particular for its home UK market where the economy was a mess and for the US market where fuel prices were almost fluid in how much they changed. For a car that barely averaged 10 UK MPG, it was doomed from the start.
No matter how comfortable, how well equipped or how nice to drive the Nedala Mk II was, it was fated from the beginning. Launching in September 1978, initial sales were promising. But by January 1979, units had stopped shifting - they’d essentially run out of buyers who could actually afford the £200k+ (in today’s money) price tag of this thing - forcing Erin to slash prices.
Soon enough, the losses were overwhelming, and combined with poor sales across the range, bad press which damaged the company’s image and a dispute between the CEO Marco Erin and his Board Of Directors who had pushed for this car so much, Erin went into financial ruin and was forced cut huge numbers of jobs and end production of all but two of their models.
An outstandinly well built and well engineered car, that today is still revered for its incredible levels of comfort and complacency on the road, that was a insanely stupid idea from the start, totally unfeasible when it came to fuel costs and one that fully highlighted the bad status of Erin’s management in the latter half of the 1970s.
Full backstory here