| The Matchbox brand of cars dominated the | | | | Another huge factor that caused Mattel's cars to |
| die-cast toy car industry for decades. In fact, | | | | be successful in America was the fact that it was |
| they had no real competitors during their reign as | | | | an American company. Their initial success was |
| the only prominent die-cast toy car maker. That | | | | limited to the United States and sent Matchbox |
| is until Mattel introduced their line of Hot Wheels in | | | | sales in America plummeting as stated earlier. |
| 1968 and had immediate success. Matchbox's | | | | Matchbox was able to maintain a foothold in the |
| sales in America dropped from $28 million to $6 | | | | die-cast toy car industry due to its worldwide |
| million in the following year. There are a number | | | | sales. |
| of reasons why Mattel's new line had such an | | | | Hot Wheels also became widely popular |
| immediate success. | | | | immediately because of the models they chose to |
| The first and primary reason for their overnight | | | | produce. Matchbox had primarily produced their |
| success was the wheels. Co-Founder of Mattel, | | | | cars years after the actual car or vehicle was |
| Elliot Handler, had created new wheels that are | | | | produced. Mattel's line primarily used the designs |
| described as 'friction-less.' These new wheels | | | | of the American made muscle cars and hot rods |
| allowed the cars to race at up to 200 mph (for | | | | of the fifties and sixties. They also tended to |
| the scale of the car). These 'hot' wheels allowed | | | | customize the cars the way many car enthusiasts |
| Mattel's line to quickly surpass all competitors, | | | | did in Southern California, with the rear end jacked |
| both car to car and sales to sales. Children simply | | | | up and flames or other graphics painted on the |
| enjoyed having a toy car that ran much faster | | | | body. These design characteristics helped Hot |
| down the plastic track. | | | | Wheels succeed in America because kids could |
| Mattel's new line also had a great advantage | | | | now race around the living room with the cars |
| starting out. The Lesney company (forerunner to | | | | they saw on the streets and their older siblings |
| Matchbox) started from scratch with a | | | | drove. |
| condemned building, limited funding, and grew out | | | | In 1969, a year and a half after Mattel introduced |
| of a die-casting company's slow season. Mattel | | | | its fast wheeled cars, Matchbox themselves came |
| was the leading company in many toy categories | | | | out with faster wheels and more contemporary |
| and had highly successful lines of toys like 'Barbie' | | | | models. The two companies then remained neck |
| and 'See N Say'. In fact, when Mattel introduce | | | | and neck in the toy car world for many years. It |
| Hot Wheels, they did so with a $10 million | | | | wasn't until the 1990's that Hot Wheels began to |
| advertising campaign. They also had an advantage | | | | pull away from Matchbox and become the clear |
| in the production of their cars. They had their | | | | industry leader. Ironically, after the matchbox |
| models build in places like China and the Far East, | | | | brand was sold to Universal Toys and then Tyco, |
| where labor costs were significantly less than in | | | | it was purchased by Mattel. |
| England, where Matchbox originated. | | | | |