Malaise era

The phrase "malaise era", coined by journalist Murilee Martin,[9] refers to US President Jimmy Carter's malaise speech in which he discussed America's failure to deal with the 1979 oil crisis. Martin claimed the era began in 1973, when the U.S. government released new crash bumper regulations, and ended in 1983, when the Mustang saw a significant performance increase.[10]

Until this time the automotive industry in the United States had relied on powerful but inefficient engines using a carburetor to drive the typically large and heavy vehicles. Muscle cars from before the Malaise era were fast, powerful, and flamboyant.[11] For example, in 1971 the popular base model Chevrolet Caprice’s standard engine was a powerful 190 kW (255 hp) 400-cubic-inch (6.6 L) V8, with which it attained a fuel efficiency rating of 11.2 miles per US gallon (21.0 l/100 km) and a top speed of 176 km/h (109 mph).[12] The average fuel economy across passenger cars was 15.2 mpg before government mandates forced the automotive industry to improve average fuel efficiency to 18 mpg by 1978.[13]

The Pre-Malaise era was also a time of exceptional design; some journalists argue that the 1960s were the period of automotive history with the best design.[14] Cars of this decade were stylish and beautiful; this era gave rise to cars like the Jaguar E-Type and Lamborghini Miura. [15]

Price of Crude Oil in 2014 USD from 1900 to 2014

The period began with the 1973 oil crisis, by the end of which, in March 1974, the price of oil had nearly quadrupled, from US$3 per barrel ($18 in 2021 dollars [16]) to nearly $12 globally ($73 in 2021 dollars [16]); US prices were significantly higher.[17] The result was a sudden switch in consumer taste from traditional domestic gas-guzzlers to more efficient compact cars. Since the US manufacturers had few of these products, European and Japanese models increased their market share.[18]

The shift towards smaller, more efficient vehicles benefitted foreign manufacturers. By 1975, 18.3% of U.S. sales were imported cars.[19] The American brands had their slowest year since 1962, selling just 7,050,120 cars in 1975.[20] By comparison, they sold 9.6 million cars in 1973.[21] The success of Japanese brands can be traced to the greater selection of compact cars and the development of technologies to improve fuel efficiency. Honda’s CVCC technology allowed its cars to pass emission standards without a catalytic converter.[22]

The 1979 oil crisis caused oil and gas prices to again increase significantly, doubling over 12 months, and there was a further shift in customer preference to smaller, more efficient vehicles. American automakers began introducing smaller, less powerful models to compete against foreign manufacturers, particularly the Japanese offerings.[23] In 1978, GM sold over 5 million cars, but by 1982 they sold about 3.5 million, a decrease of 34.2%. Other American manufacturers saw similar losses; Ford sales fell 47% and Chrysler sales dropped 27% from 1978 to 1982. In the same years, Toyota sales increased from 441,800 cars to 527,128 cars, a 19.3% increase. Japanese brands Honda and Datsun saw increases of 33.1% and 39.1% respectively.[24]

Starting in 1973, NHTSA also promulgated bumper regulations requiring specific bumper performance requirements in collisions at certain speeds and angles—which also increased the size and weight of the bumpers.

Car manufacturers used primitive technologies to address emissions control in the US. By the 1974 model year, the emission standards had tightened such that the de-tuning techniques used to meet them were seriously reducing engine efficiency, and thus increasing fuel usage. The new emission standards for the 1975 model year spurred the deployment of the catalytic converter.

CAFE Standard increases even when fuel costs decrease

The United States Environmental Protection Agency then regulated for fuel efficiency, and in 1978 the Energy Tax Act legislated to discourage the sale of new inefficient vehicles, via the Corporate Average Fuel Economy (CAFE) standard.[25]

The NHTSA was charged with implementing CAFE.[26] Issues like weight and aerodynamics were not priority concerns for the regulators.[26]

An illustrative example was Federal Motor Vehicle Safety Standard 108 which mandated standardized sealed beam headlamps on all vehicles, thus banning aerodynamic headlamps used in other markets.[27] Even aerodynamic headlight covers over the sealed beams were illegal, though eventually NHTSA permitted aerodynamic headlamps in 1983.[28]

The "Malaise era" ended between 1983, with the advent of computer controlled vehicles, electronic fuel injection, the oxygen sensor, and three-way catalyst, and 1996, when OBD II computer controls were mandated federally.[29] The fuel crisis receded further into history during the 1980s and vehicle performance began to increase again, according to Hagerty.[30] In 1985, Mustang horsepower climbed above 200 for the first time since the early 1970s.[30] The Malaise Era might have finally ended when the national speed limit was raised to 65 miles per hour (105 km/h) in 1987.[30]

1975 Ford Mustang II

The combination of the oil crises and government regulations led some journalists noted the slow and ugly vehicles offered to Americans in this era.[31][32][33] The bumper regulations forced manufacturers to replace old bumpers with thicker and more sturdy material.[34] One journalist described this period of automotive history as the "worst era in car design".[35] Another journalist wrote that cars of this era were "bloated, underpowered, and uninspired".[36]

Ford Motor Company explained that this was a period that had to be endured. For example, the Ford Pinto-based Mustang II was a necessary step for the survival of the Mustang nameplate.[37] The original Mustang was developed from the entry level 1959 Ford Falcon.

Despite complaints against cars from this era, some vehicles from the 1970s and 1980s started becoming more popular in the late 2010s.[38] Their increase in popularity led to the creation of car shows dedicated only to cars from this era.[39] According to the Hagerty Price Guide, these cars saw the greatest increase in value when compared to other used cars. 82% of used cars saw no increase in price in 2018, but cars from the 1970s and 1980s increased in value by 24% and 38% respectively in the same year.[40]

• Grey import vehicle