Studebaker

1902-1966

(from Wikipedia)

We have the following Studebakers in the club:

1947                        3 pcs.

1948                        7 pcs.

1949                        9 pcs.

1950                        6 pcs.

1951                        1 pcs.

1952                        3 pcs.

1953                        4 pcs.

1954                        1 pcs.

1955                      10 pcs.

1956                        4 pcs.

1957                        6 pcs.

1958                        2 pcs.

1959                        2 pcs.

1960                        7 pcs.

1961                        3 pcs.

1962                      13 pcs.

1963                        6 pcs.

1964                      13 pcs.

1965                        2 pcs.

1966                        1 pcs.

Totally 103 Studebakers in the club.

Studebaker Corporation was a United States wagon and automobile manufacturer based in South Bend, Indiana. Founded in 1852 and incorporated in 1868 under the name of the Studebaker Brothers Manufacturing Company, the company was originally a producer of wagons for farmers, miners, and the military.

Studebaker entered the automotive business in 1902 with electric vehicles and in 1904 with gasoline vehicles, all sold under the name "Studebaker Automobile Company". Until 1911, its automotive division operated in partnership with the E-M-F Company and the Garford Company of Elyria, Ohio. The first gasoline cars to be fully manufactured by Studebaker were marketed in August 1912.:p231 Over the next 50 years, the company established an enviable reputation for quality and reliability. The South Bend plant ceased production on December 20, 1963, and the last Studebaker car rolled off the Hamilton, Ontario, Canada, assembly line on March 16, 1966.

Studebaker automobiles 1897–1966

In 1895, John M. Studebaker's son-in-law Fred Fish urged for development of 'a practical horseless carriage'. When, on Peter Studebaker's death, Fish became chairman of the executive committee in 1897, the firm had an engineer working on a motor vehicle.[6]:p.66 At first, Studebaker opted for electric (battery-powered) over gasoline propulsion. While manufacturing its own Studebaker Electric vehicles from 1902 to 1911, the company entered into body-manufacturing and distribution agreements with two makers of gasoline-powered vehicles, Garford of Elyria, Ohio, and the Everett-Metzger-Flanders (E-M-F) Company of Detroit and Walkerville, Ontario). Studebaker began making gasoline-engined cars in partnership with Garford in 1904-

Garford

Under the agreement with Studebaker, Garford would receive completed chassis and drivetrains from Ohio and then mate them with Studebaker-built bodies, which were sold under the Studebaker-Garford brand name at premium prices. Eventually, vehicles with Garford-built engines began to carry the Studebaker name. Garford also built cars under its own name and, by 1907, attempted to increase production at the expense of Studebaker. Once the Studebakers discovered this, John Mohler Studebaker enforced a primacy clause, forcing Garford back on to the scheduled production quotas. The decision to drop the Garford was made and the final product rolled off the assembly line by 1911, leaving Garford alone until it was acquired by John North Willys in 1913.

E-M-F

Studebaker's agreement with the E-M-F Company, made in September 1908 was a different relationship, one John Studebaker had hoped would give Studebaker a quality product without the entanglements found in the Garford relationship, but this was not to be. Under the terms of the agreement, E-M-F would manufacture vehicles and Studebaker would distribute them exclusively through its wagon dealers.

The E-M-F gasoline-powered cars proved disastrously unreliable, causing wags to say that E-M-F stood for Every Morning Fix-it, Easy Mark's Favorite, and the like. Compounding the problems was the infighting between E-M-F's principal partners, Everett, Flanders, and Metzger. Eventually in mid-1909, Everitt and Metger left to start a new enterprise. Flanders also quit and joined them in 1912 but the Metzger Motor Car Co could not be saved from failure by renaming it the Flanders Motor Company.

Studebaker's president, Fred Fish, had purchased one-third of the E-M-F stock in 1908 and followed up by acquiring all the remainder from J. P. Morgan in 1910 and buying E-M-F's manufacturing plants at Walkerville, Ontario, Canada, and across the river in Detroit.

Studebaker marque established

In 1911, it was decided to refinance and incorporate as the Studebaker Corporation. The company discontinued making electric vehicles that same year.[6]:p.71 The financing was handled by Lehman Brothers and Goldman Sachs who provided board representatives including Henry Goldman whose contribution was especially esteemed.

After taking over E-M-F's facilities, Studebaker sought to remedy the customer dissatisfaction by paying mechanics to visit each disgruntled owner and replace defective parts in their vehicles, at a total cost of US$1 million. The worst problem was rear-axle failure. Hendry comments that the frenzied testing resulted in Studebaker's aim to design 'for life'—and the consequent emergence of "a series of really rugged cars... the famous Big and Special Sixes".

From that time, Studebaker's own marque was put on all new automobiles produced at the former E-M-F facilities as an assurance that the vehicles were well built.

Engineering advances from WWI

The 1913 six-cylinder models were the first to employ the important advancement of monobloc engine casting which became associated with a production-economy drive in the years of World War I. At that time, a 28-year-old university graduate engineer, Fred M. Zeder, was appointed chief engineer. He was the first of a trio of brilliant technicians, with Owen R. Skelton and Carl Breer, who launched the successful 1918 models, and were known as "the Three Musketeers". They left in 1920 to form a consultancy, later to become the nucleus of Chrysler Engineering. The replacement chief engineer was Guy P. Henry who introduced molybdenum steel, an improved clutch design and presided over the six-cylinders-only policy favored by new president Albert Russel Erskine who replaced Fred Fish in July 1915.

John M. Studebaker had always viewed the automobile as complementary to the horse-drawn wagon, pointing out that the expense of maintaining a car might be beyond the resources of a small farmer. As a result, the manufacture of horse-drawn vehicles was not wholly ceased until Erskine ordered removal of the last wagon gear in 1919. To the cars, Studebaker added a truck line, which later replaced the horse-drawn wagons. Buses, fire engines, and even small rail locomotives were produced using the same powerful six-cylinder engines.

First auto proving ground

In 1925, the corporation's most successful distributor and dealer Paul G. Hoffman came to South Bend as vice-president in charge of sales. In 1926, Studebaker became the first automobile manufacturer in the United States to open a controlled outdoor proving ground on which, in 1937, would be planted 5,000 pine trees in a pattern that spelled "STUDEBAKER" when viewed from the air. Also in 1926, the last of the Detroit plant was moved to South Bend under the control of Harold S Vance, vice-president in charge of production and engineering. That year, a new small car, the Erskine Six was launched in Paris, resulting in 26,000 sales abroad and many more in America.[6]:p.91 By 1929, the sales list had been expanded to 50 models and business was so good that 90 per cent of earnings were being paid out as dividends to shareholders in a highly competitive environment. However, the end of that year ushered in the Great Depression that saw many layoffs and massive national unemployment for several years.

Facilities in the 1920s

Studebaker's total plant area was 225 acres (0.91 km2), spread over three locations, with buildings occupying seven-and-a-half million square feet of floor space. Annual production capacity was 180,000 cars, requiring 23,000 employees.

The original South Bend vehicle plant continued to be used for small forgings, springs, and making some body parts. Separate buildings totaling over one million square feet were added in 1922–23 for the Light, Special, and Big Six models. At any one time, 5,200 bodies were in process. South Bend's Plant 2 made chassis for the Light Six and had a foundry of 575,000 sq ft (53,400 m2), producing 600 tons of castings daily.

Plant 3 at Detroit made complete chassis for Special and Big Six models in over 750,000 sq ft (70,000 m2) of floor space. Plant 5 was the service parts store and shipping facility, plus the executive offices of various technical departments. All of the Detroit facilities were moved to South Bend in 1926.

Plant 7 was at Walkerville, Canada, where complete cars were assembled from South Bend, Detroit, and locally-made components for the Canadian and British Empire (right-hand-drive) trade. By locating it there, Studebaker could advertise the cars as "British-built" and qualify for reduced tariffs. This manufacturing facility had been acquired from E-M-F in 1910 (see above). By 1929, it had been the subject of $1.25 million investment and was providing employment that supported 500 families.

Impact of the 1930s depression

Few if any industrialists were prepared for the Wall Street Crash of October 1929. Though Studebaker's production and sales had been booming, the market collapsed and plans were laid for a new, small, low-cost car—the Rockne. However, times were too bad to sell even inexpensive cars. Within a year, the firm was cutting wages and laying off workers, but not quickly enough. Erskine maintained faith in the Rockne and rashly had the directors declare huge dividends in 1930 and 1931. He also acquired 95% of the White Motor Company's stock at inflated price and in cash. By 1933, the banks were owed $6 million, though current assets exceeded that figure. Instead of reorganizing in receivership, Erskine committed suicide, leaving it to successors Harold Vance and Paul Hoffman to deal with the problems.

By December 1933, the company was back in profit with $5.75 million working capital and 224 new Studebaker dealers. With the substantial aid of Lehman Brothers, full refinancing and reorganization was achieved on March 9, 1935. A new car was put on the drawing boards under chief engineer Delmar "Barney" Roos—the Studebaker Champion. Its final styling was designed by Virgil Exner and Raymond Loewy. The Champion doubled the company's previous-year sales when it was introduced in 1939.

World War II

From the 1920s to the 1930s, the South Bend company had originated many style and engineering milestones, including the Light Four, Light Six, Special Six, Big Six models, the record-breaking Commander and President, followed by the 1939 Champion. During World War II, Studebaker produced the Studebaker US6 truck in great quantity and the unique M29 Weasel cargo and personnel carrier. After cessation of hostilities, Studebaker returned to building automobiles that appealed to average Americans.

Post-WWII styling

Studebaker prepared well in advance for the anticipated post-war market and launched the slogan First by far with a post-war car. This advertising premise was substantiated by Virgil Exner's designs, notably the 1947 Studebaker Starlight coupé, which introduced innovative styling features that influenced later cars, including the flatback "trunk" instead of the tapered look of the time, and a wrap-around rear window. Exner's concepts were spread through a line of models like the 1950 Studebaker Champion Starlight coupe[17] The new trunk design prompted a running joke that one could not tell if the car was coming or going.

Hamilton, Ontario plant

On August 18, 1948, surrounded by more than 400 employees and a battery of reporters, the first vehicle, a blue Champion four-door sedan, rolled off of the Studebaker assembly line in Hamilton, Ontario, Canada.[18] The company was located in the former Otis-Fenson military weapons factory off Burlington Street on Victoria Avenue North, which was built in 1941. Having previously operated its British Empire export assembly plant at Walkerville, Ontario, Studebaker settled on Hamilton as a post-war Canadian manufacturing site because of the city's centrality to the Canadian steel industry.

Industry price war brings on crisis

Studebaker's strong post-war management team including president Paul G Hoffman and Roy Cole (vice-president, engineering) had gone by 1949 and was replaced by more cautious executives who failed to meet the competitive challenge brought on by Henry Ford II and his Whiz Kids. Massive discounting in a price war between Ford and General Motors could not be equalled by the independent carmakers, for whom the only hope was seen as a merger of Studebaker, Packard, Hudson, and Nash into a third giant combine. This had been unsuccessfully attempted by George W. Mason. In this scheme, Studebaker had the disadvantage that its South Bend location would make centralization difficult. Its labor costs were also the highest in the industry.

Losses lead to merger with Packard

Ballooning labor costs (the company had never had an official United Auto Workers [UAW] strike and Studebaker workers and retirees were among the highest paid in the industry), quality control issues, and the new-car sales war between Ford and General Motors in the early 1950s wreaked havoc on Studebaker's balance sheet.[2]:p254-255 Professional financial managers stressed short-term earnings rather than long-term vision. There was enough momentum to keep going for another ten years, but stiff competition and price-cutting by the Big Three doomed the enterprise.

From 1950, Studebaker declined rapidly and, by 1954, was losing money. It negotiated a strategic takeover by Packard, a smaller but less financially troubled car manufacturer. However, the cash position was worse than it had led Packard to believe and, by 1956, the company (renamed Studebaker-Packard Corporation and under the guidance of CEO James J. Nance) was nearly bankrupt, though it continued to make and market both Studebaker and Packard cars until 1958. The "Packard" element was retained until 1962, when the name reverted to "Studebaker Corporation".

Contract with Curtiss-Wright

A three-year management contract was made by Nance with aircraft maker Curtiss-Wright in 1956[19] with the aim of improving finances.[2] C-W's president, Roy T. Hurley, attempted to cure Studebaker's ruinously lax employment policies. Under C-W's guidance, Studebaker-Packard also sold the old Detroit Packard plant and returned the then-new Packard plant to its lessor, Chrysler. The company became the American importer for Mercedes-Benz, Auto Union, and DKW automobiles and many Studebaker dealers sold those brands as well. C-W gained the use of idle car plants and tax relief on their aircraft profits while Studebaker-Packard received further working capital to continue car production.

Last automobiles produced

The automobiles that came after the diversification process began, including the redesigned compact Lark (1959) and the Avanti sports car (1962), were based on old chassis and engine designs. The Lark, in particular, was based on existing parts to the degree that it even utilized the central body section of the company's 1953–58 cars, but was a clever enough design to be popular in its first year, selling over 130,000 units and delivering a $28.6 million profit to the automaker. "S-P rose from 56,920 units in 1958 to 153,844 in 1959."

However, Lark sales began to drop precipitously after the big three manufacturers introduced their own compact models in 1960, and the situation became critical once the so-called "senior compacts" debuted for 1961. The Lark had provided a temporary reprieve, but nothing proved enough to stop the financial bleeding.

There was a labor strike at the South Bend plant[21] starting on January 1, 1962 and lasting 38 days.[22] The strike came to an end after an agreement was reached between company president Sherwood H. Egbert and Walter P. Reuther, president of the UAW.[23] Despite a sales uptick in 1962, continuing media reports that Studebaker was about to leave the auto business became a self-fulfilling prophecy as buyers shied away from the company's products for fear of being stuck with an "orphan". NBC reporter Chet Huntley made a television program called "Studebaker—Fight for Survival" which aired on May 18, 1962.[24] By 1963, all of the company's automobiles and trucks were selling poorly.

Exit from auto business

Closure of South Bend plant, 1963

After continued poor sales of the 1964 models and the ousting of president Sherwood Egbert, the company announced the closure of the South Bend plant on December 9, 1963, and produced its last car in South Bend on December 20. The engine foundry remained open to supply the Canadian plant until the end of the 1964 model year, after which it was also shuttered. The Avanti model name, tooling, and plant space were sold off to Leo Newman and Nate Altman, who owned a Studebaker dealership in South Bend. They revived the car in 1965 under the brand name "Avanti II". (See main article Avanti cars (non-Studebaker).) They likewise purchased the rights and tooling for Studebaker's trucks, along with the company's vast stock of parts and accessories. Trucks ceased to be built after Studebaker fulfilled its remaining orders in early 1964.

Closure of Hamilton plant, 1966

Limited automotive production was consolidated at the company's last remaining production facility in Hamilton, Ontario, Canada, which had always been profitable and where Studebaker produced cars until March 1966 under the leadership of Gordon Grundy. It was projected that the Canadian operation could break even on production of about 20,000 cars a year, and Studebaker's announced goal was 30,000–40,000 1965 models. While 1965 production was just shy of the 20,000 figure, the company's directors felt that the small profits were not enough to justify continued investment. Rejecting Grundy's request for funds to tool up for 1967 models, Studebaker left the automobile business on March 16, 1966 after an announcement on March 4.[25] A turquoise and white Cruiser sedan[18] was the last of fewer than 9,000 1966 models manufactured. In reality, the move to Canada had been a tactic by which production could be slowly wound down and remaining dealer franchise obligations honored.

The closure adversely affected not only the plant's 700 employees, who had developed a sense of collegiality around group benefits such as employee parties and day trips, but the city of Hamilton as a whole; Studebaker had been Hamilton's tenth largest employer.