Post-war decline
After World War II, French luxury car makers struggled under the depressed economy. General Pons's five-year reconstruction program (the Pons Plan) allocated the majority of its vehicles for export, and installed an increasingly punitive tax regime aimed at luxurious non-essential products, including cars with engines larger than 2 L. In 1947, 88% of Delahaye production was exported, primarily to French colonies in Asia and Africa. Delahaye's meagre production of 573 cars in 1948 (compared to 34,164 by market-leader Citroën), was unsustainably low.[8]
The new face of the postwar Delahaye was styled in-house by industrial designer Philippe Charbonneaux. Production of the outdated pre-war Type 135 and 148L was resumed in 1946, to restart cash flow and because the Type 175 and its two longer-wheelbased versions were not ready for introduction.[5] The Type 175 was very modern when it had been envisioned in 1938 but its production was delayed until 1948 due to the war, post-war shortages, and the death of its designer.
With a license agreement in place and no viable alternatives, Delahaye proceeded with production of the Type 175. However, suspension components underwent catastrophic failure, and Delahaye was obliged to buy back a number of its vehicles to avoid litigation. The risk of negative publicity was so great that the company kept no records of these events. The affair could not be effectively contained and resulted in disinterest among prospective buyers. The Type 175, 178 and 180 models were unable to generate enough sales to recover development and production costs.[5] Their production was discontinued in mid-1951.
Until early 1951, continuing demand from the French army for the company's light reconnaissance vehicles (VLR) enabled the company to operate. Small but steady demand for the Delahaye 163 trucks allowed the business to remain solvent.[9]
A one-ton capacity light truck (later sharing its 3.5-litre six-cylinder overhead-valve engine with the company's Type 235 luxury cars) made its debut at the 1949 Paris Motor Show as the Type 171.[9] During the next twelve months the Type 171 spawned several brake-bodied versions, including ambulance and 9-seater "familiale" variants. The vehicle was intended for use in France's African colonies, having large wheels and high ground clearance, and was also exported to Brazil. By 1952, thirty Type 171s were produced per month.
Delahaye's last entirely new model, a 2-litre Jeep-like vehicle known as Delahaye VLR (Véhicule Léger de Reconnaissance Delahaye) was released in 1951.[9] The French army believed that this vehicle offered a number of advantages over the traditional American-built Jeep of the period. During 1953, the company built 1,847 VLRs, as well as 537 "special" military vehicles. In that year no more than 36 Delahaye or Delage-branded passenger cars were registered.
In 1953, the Type 235 was introduced. Fernand Lecour, working with a small group of enthusiastic factory employees, convinced Weiffenbach to introduce an updated version of the Type 135, fitted with hydraulic instead of mechanical brakes, and a triple Solex carbureted version of the 3.6-litre Type 135 engine, which produced 152 hp.[5] This power was roughly equal to that of the previous series. Only 84 examples of the Type 235 were built.
Delahaye's competitor, Hotchkiss, negotiated a licensing agreement with Kaiser-Willys Motors, and obtained sanction to manufacture its Willys MB 'Jeep' in France. The French army began to appreciate the simpler machine, available at a much lower price, and cancelled the contract for the more sophisticated Delahaye VLR. In August 1953, the company laid off more than 200 employees.[10] A merger was discussed with Hotchkiss, which was facing similar problems. On 19 March 1954, an agreement was signed by Delahaye president Pierre Peigney and Hotchkiss president Paul Richard.[10] Less than three months later, on 9 June, Delahaye shareholders accepted a takeover of Delahaye by Hotchkiss,[10] after which Hotchkiss promptly shut down Delahaye car production. By the end of 1954, after a brief period selling trucks with the Hotchkiss-Delahaye nameplate, the combined firm was itself taken over by Brandt. By 1956, the brands Delahaye, Delage, and Hotchkiss were no longer in use.[5]