By the time the 1961 DeSoto was introduced in the fall of 1960, rumors were widespread that Chrysler was moving towards terminating the brand, fueled by a reduction in model offerings for the 1960 model year. The introduction of the lower priced Newport to the upscale Chrysler brand no doubt hastened the decision to end production of DeSoto, which was very similar in size, styling, price, and standard features.
For 1961, DeSoto lost its series designations entirely, in a move reminiscent of Packard’s final lineup. And, like the final Packards, the final DeSoto was of questionable design merit. Again, based on the shorter Chrysler Windsor wheelbase, the DeSoto featured a two-tiered grille (each tier with a different texture) and revised taillights. Only a two-door hardtop and a four-door hardtop were offered. The cars were trimmed similarly to the 1960 Fireflite.
The final decision to discontinue DeSoto was announced on November 30, 1960, just forty-seven days after the 1961 models were introduced. At the time, Chrysler warehouses contained several million dollars in 1961 DeSoto parts, so the company ramped up production in order to use up the stock. Chrysler and Plymouth dealers, which had been forced to take possession of DeSotos under the terms of their franchise agreements, received no compensation from Chrysler for their unsold DeSotos at the time of the formal announcement. Making matters worse, Chrysler kept shipping the cars through December, many of which were sold at a loss by dealers eager to be rid of them. After the parts stock was exhausted, a few outstanding customer orders were filled with Chrysler Windsors. – Source: Wikipedia