Studebaker

Studebaker was a United States wagon and automobile manufacturer that was incorporated on February 16, 1852. The company left the automobile business in 1966.

Studebaker Automobiles 1897-1966

Studebaker experimented with motor vehicles as early as 1897, choosing electric over gasoline powered engines. The company entered into a distribution agreement with Everett-Metzger-Flanders (EMF) Company of Detroit; EMF would manufacture vehicles and the Studebakers would distribute them through their wagon dealers. Problems with EMF made the cars unreliable leading the public to say that EMF stood for "Every Morning Fix-it". J.M. Studebaker, unhappy with EMF's poor quality, gained control of the assets and plant facilities in 1910. To remedy the damage done by EMF, Studebaker paid mechanics to visit each unsatisfied owner and replace the defective parts in their vehicles at a cost of US$1 million to the company. Studebaker also began putting its name on new automobiles produced at the former EMF facilities, both as an assurance that the vehicles were well-built, and as its commitment to making automobile production and sales a success. In 1911 the company reorganized as the Studebaker Corporation.

Related Topics:
1897 - Gasoline - Everett-Metzger-Flanders - 1910 - US$ - 1911

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In addition to cars, Studebaker also added a truck line, which in time, replaced the horse drawn wagon business started in 1851. In 1926, Studebaker became the first automobile manufacturer in the United States to open a controlled outdoor proving ground; in 1937 the company planted 5,000 pine trees in a pattern that when viewed from the air spelled "STUDEBAKER."

Related Topics:
1851 - 1926 - 1937 - Pine

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From the 1920s to the 1960s, the South Bend company originated many style and engineering milestones, including the classic 1929-1932 Studebaker President and the 1939 Studebaker Champion. Studebaker continued to build models that appealed the average American and their need for transportation and mobility.

Related Topics:
1920s - 1960s - 1929 - 1932 - Studebaker President - 1939 - Studebaker Champion

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However, 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 war between Ford and General Motors in the early 1950s wreaked havoc on Studebaker's balance sheet. 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.

Related Topics:
United Auto Workers - Ford - General Motors - 1950s - Big Three

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Hoping to stem the tide of losses and bolster its market position, Studebaker allowed itself to be acquired by Packard Motor Car Company of Detroit; the merged entity was called the Studebaker-Packard Corporation through 1962. Studebaker's cash position was far worse than it led Packard to believe and in 1958 the nearly bankrupt automaker brought in a management team from aircraft maker Curtiss-Wright to help get it back on its feet. In 1958, Packard was discontinued; the company became the American agent for Mercedes-Benz and many Studebaker dealers sold that brand as well.

Related Topics:
Packard - Studebaker-Packard Corporation - 1962 - 1958 - Curtiss-Wright - Mercedes-Benz

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Financial constraints dictated that new models, including the compact Lark(1959) and "Avanti" sports car (1963) be based on old chassis and engine designs, and were not enough to stop the financial bleeding. The company closed its operations in South Bend in December 1963, selling its Avanti brand to Nate Altman who continued to produce the car in South Bend under the brand name Avanti II. Automotive production was shifted to the company's last remaining production facility in Hamilton, Ontario, where Studebaker produced cars until May, 1966, when it left the automobile business to focus on its profitable wholly-owned subsidies. The last car manufactured was a blue and white Cruiser.

Related Topics:
Compact - Lark - 1959 - 1963 - December - Avanti - Avanti II - Hamilton, Ontario - May - 1966

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Many of Studebaker's dealers converted to Mercedes Benz dealerships following the closure of the Canadian plant. Studebaker's proving grounds were acquired by its former supplier Bendix Corporation, which later donated the grounds for use as a park to the St. Joseph County, Indiana parks department. As a condition of the donation, the new park was named park Bendix Woods.

Related Topics:
Mercedes Benz - Bendix Corporation - St. Joseph County, Indiana - Bendix Woods

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After 1966, Studebaker continued to exist as a closed investment group, with income derived from its numerous diversified units including STP, Gravely Tractor, Onan Electric Generators, and Clarke Floor Machine. Studebaker was acquired by Wagner Electric in 1967. Subsequently, Studebaker was then merged with the Worthington Corporation to form Studebaker-Worthington before being acquired by McGraw-Edison in 1979. McGraw-Edison was itself acquired in 1985 by Cooper Industries, which sold off all its auto-parts divisions to Federal-Mogul some years later.

Related Topics:
1966 - STP - Gravely Tractor - Clarke Floor Machine - 1967 - 1979 - 1985 - Cooper Industries - Federal-Mogul

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