Get documents about "The South Bend NBC station is reporting tonight that the Enron
Document Sample
The South Bend NBC station is reporting tonight that the Enron collapse
is
affecting its workers like the Studebaker "bankruptcy" affected their
employees in South Bend. I know there wasn't much left for the employees
at
Studebaker when the plants closed. I talked to a guy who worked there
who
told me about how he and his buddies loaded up on car parts before they
left. However, I was under the impression that Studebaker didn't file
for
bankruptcy, they just plain closed up shop.
When Studebaker quit the vehicle business beginning in South Bend, the
company was well into diversification. The business did not fail.
Correct. The Studebaker board of directors were really determined to take
the
corporation into diversification and out of the auto business years
before the
close of the main.
Ron
The McGraw - Edison absorbtion came Sept 1st 1979.
There was a thread running several months ago that listed one or more
companys
in the string after that but I can't locate the darn info now. Who has
that
info ?
Mickey
It was Studebaker-Worthington that was absorbed by the smaller McGraw
Edison which in turn was bought by Cooper Industries which is currently
a candidate to be bought out by yet another corporation, (I forgot
which though - It was a business news item a couple of days ago).
-At the last South Bend International, there was a lengthy public
discussion
-with the president of the union local that represented Studebaker
employees.
-He stated that NO vested worker lost ANY retirement benefit, and you
have to
-wonder what reason a UAW official would have to lie in the company's
favor.
-Now, every corporate retirement system has a contractual definition of
-"vested." You have to work for a company for a given number of years
before
-you are a part of the retirement fund group. This is also the case for
-government employees. The magic number at Studebaker may have been 15
-years--the subject did not come up. But clearly, lifetime employees
near
-retirement were not turned out penniless into the street.
-Posts on this group show that business commentators are as vague about
-Studebaker history as those experts who tell you all about your car in a
-shopping center parking lot. Regrettable as some events may be, there
is
-nothing in Studebaker business history to be ashamed of, including the
-end-game strategies. It behooves us to have an answer to those who take
-cheap shots.
It was 20 consecutive years i.e "People were shocked to hear about one
employee who worked for ten straight years. After a short break in
service, he
worked another ten years. But guess what? His years working for the
company did
not satisfy its 20 year service requirement -his service had to be
consecutive.
And the employee got nothing. So many stories like this forced Congress
to act."
The article is here:
http://www.unclefed.com/Tax-News/1995/Nr95-14.html
Twenty consecutive years was a long time to become vested even in the
early 1960's. When I worked for Kaman aerospace, (a non-union company),
the service length to be vested in the retirement program was ten years.
Incidentally, the program was entirely financed and administrated by
the company, (no employee contributions).
The real cure to retirement plans is simply that they should all be
alike and follow the individual throughout his/her lifetime. NO early
withdrawals for ANY reason except death where the proceeds go to a
designated beneficiary.
The term "vested" has to be transportable, not tied to any given
employer given that many jobs don't last for the minimum current vested
requirements. The days of life-long employment with a single employer
are gone forever.
Channel 22 here in South Bend interviewed Les Fox, who at the time of
Studebaker's closing had something like 15 years tenure with the company.
I
believe Mr. Fox was the President of Local 5 in December 1963, and may
have
been the speaker Mike Seery is talking about. Mr. Fox was given a lump
sum
payment of about $300 at the closing, which represented the value of his
pension as of 12/63. I believe he said the cut off for full benefits was
20
years of service. Remember, the Studebaker pension was wholly company
funded.
Ed. Note / I've been advised that many did not receive anything, even
with as
much as 27 years of service...)
The most glaring difference between Enron and Studebaker that I see is
that
Enron's failure meant the loss of employee contributions to their
retirement
plans. Employees lost money that was earned and in their hands at one
time,
and then voluntarily given to the company to be invested in a retirement
plan. I have read where Enron's 401K plan required a certain amount of
employee contributions to be invested in Enron stock (up to 100%!).
Frankly, I was shocked to hear that. Most companies have a mandatory
limit
to the amount of money their 401K plan can put in their own company stock
(usually 25%). Most companies would have never allowed this to be
policy.
Enron is the only case I have heard of where a company would allow such a
risky policy to exist. Now, a law will be passed almost for sure to
legislate what is really just sound business practice, and a practice
that
is followed by most businesses today. One bad apple is all it takes.
My Uncle worked had several years in as a welder.He had no benefits when
the
main closed.
I'm personally convinced the board of directors moving Lark only
production to
Canada after 1963 had everything to do with avoiding U.S. dealer
litigation
than car production.
As I've offered before, when Lark sales began to sag and Egbert was
brought in,
the handwriting was on the wall from the big shots to move fast for the
stock
holders on corporate diversification and get out of the car business.The
man
did that job. If the board was really serious in keeping Stude in the car
business, it would have put Lark profits into the auto end of things
instead of
buying other companies.Hell, as early as 1961, some Studebaker dealers
could
not even get credit to buy and sell vehicles. Their problems were ignored
by
the big shots.
Ron
=========
I'd like to set the record straight regarding Studebaker's closing and
comparisons with Enron.
1. Studebaker never declared bankruptcy from the time it was founded in
1852 until the day it was absorbed by McGraw-Edison in 1979. Studebaker
did enter voluntary receivership in 1933, but this was not a bankruptcy!
In contrast, Enron has sought Chapter 11 bankruptcy protection. Whether
it will ever emerge is subject to debate.
2. Actually, Studebaker had a long history of diversification. For
example, the acquisition of Pierce-Arrow was an earlier example of it.
However, until the early 1950s, diversification was always related to
the core business. By the mid-1950s, the board decided the company would
survive only if it diversified its way out of the auto business.
Sherwood Egbert was brought in to speed up the diversification process.
Enron went from a rather small pipeline operator to an energy trading
firm. Utility deregulation initiatives by various states fueled Enron's
transformation.
3. In a shameful move, the Studebaker Board of Directors changed the
vesting criteria from 10 years of service to 20 years. This was done
because the board already had spent nearly all of the pension money on
diversification. The union leader who said every vested Studebaker
worker received his/her pension was correct - they did, but they had to
have at least 20 years of service!
Enron, like many companies, encouraged employees to invest their 401(k)
dollars in Enron stock. Enron matched 401(k) contributions with more
stock. Toward the end, Enron changed 401(k) administrators. When it did
this, employees were not allowed to move investments out of any 401(k)
fund, including Enron stock, for 30 days. By the time the period had
passed, a share of Enron stock had about the same value as yesterday's
newspaper.
4. The pension decision by Studebaker's board was legal. It also was
applauded by many in the investing community. Studebaker stock prices
rose following the announcement that the South Bend facilities would be
closed.
On the surface, it appears Enron acted within the law with regard to the
401(k) plan. However, as investigators probe deeper, illegal actions
regarding the 401(k) plan may be found.
5. The pension decision was met with stern congressional criticism.
Nonetheless, it took the Congress until 1975 to pass the Employee
Retirement Income Security Act (ERISA). Throughout the ERISA debate,
Studebaker's name was evoked time and again. Some legislators wanted to
find a way to punish the company, but nothing came of that idea.
It seems likely that Congress will do something in the wake of Enron's
401(k) plan actions.
Leighzer
1950 2R6
1955 Commander 4-Door Sedan
===============
If my memory is working tonight, I recall reading something on that
a long time ago. Egbert was brought in to be a scape goat as he had
no previous knowledge of how an auto company should be run. After
walking around the plant and talking to the workers and learning how
the Studebaker Company was so nice a place to work that many of
the workers were third generation or more having been employed
there that He did whatever the committee would allow him to do to
improve the auto division of Studebaker. In my opinion if Sherwood
had been given full reign, the workers hadn't gone on strike disrupting
the production of the Avanti, the advertising dept. had come out of it's
coma and the parent company had sold off one or two of it's non auto
divisions, you would still be able to buy a car with a V8 engine a
frame and a roomy interior built by an automobile company that helped
settle the west by building more and better covered wagons then any
other company or in other words a new Studebaker!
Terry Lee Brandli
============
Good summary and well stated.
Would you agree that if Sherwood Egbert was brought in to "speed up
the diversification process," that someone forgot to tell him that's
what he was there for? Or did he so fall in love with the cars and the
automobile business after he got to South Bend that he decided to "go
for it" and try to make a go of automobile manufacturing?
I don't profess to know the answer, so the second question is asked in
seriousness.
Happy Birthday to Our Company!
============
If my memory is working tonight, I recall reading something on that
a long time ago. Egbert was brought in to be a scape goat as he had
no previous knowledge of how an auto company should be run. After
walking around the plant and talking to the workers and learning how
the Studebaker Company was so nice a place to work that many of
the workers were third generation or more having been employed
there that He did whatever the committee would allow him to do to
improve the auto division of Studebaker. In my opinion if Sherwood
had been given full reign, the workers hadn't gone on strike disrupting
the production of the Avanti, the advertising dept. had come out of it's
coma and the parent company had sold off one or two of it's non auto
divisions, you would still be able to buy a car with a V8 engine a
frame and a roomy interior built by an automobile company that helped
settle the west by building more and better covered wagons then any
other company or in other words a new Studebaker!
Terry Lee Brandli
As Leigh explained so well, Egbert's actions were just what he was hired
to
do.If he had more 'control' it would have been for nothing given his
cancer
diagnosis.I've concluded that the auto division 's problems were beyond
any
real repair by 1960. The terminal sales problem and the companies poor
support
of the dealer network was beyond real repair from the middle 1950'S on.
Ron
When Sherwood Egbert came to Studebaker, he had no knowledge and little
interest in the auto industry. He was recruited for his management
skills, which the board wanted to use to step up the diversification
effort.
However, Egbert fell in love with the cars. To the surprise of the
board, Egbert got it into his head that he could save the Automobile and
Truck Divisions. Though he failed in that effort, Egbert did prolong the
inevitable and gave the world the Avanti, GT Hawks and the very
attractive 64 line of cars.
Egbert, who was a heavy smoker, had cancer. He put up a brave fight, but
the illness sapped his strength by mid-63.
Leighzer
=============================
Studebaker's Board of Directors, awash with profits from the Lark in
1959-1960, narrowly made a decision that sealed the fate of the
Automotive
Division. They decided to use those profits to diversify the Corporation
away from autos, instead of reinvesting them back into automotive
operations. Sherwood Egbert was responsible during his term for
evaluating
takeover targets, and making purchase recommendations to the board. Part
of
the storied history behind our car is that Egbert, once on board, became
enormously enamored with saving the Automotive Division. He worked very
feverishly to revive it, (to the dismay of several board members),
producing
the car we all have come to love.
Studebaker's corporate remains are still around today. The biggest chunk
of
the company became a division of McGraw-Edison in the early 1970's.
Studebaker-Worthington Leasing company still exists today, the only
remnant
that still carries the name. Studebaker's stockholders did not suffer
the
huge losses the employees in South Bend and Hamilton did. Studebaker's
stock never became worthless. The diversification plan the Board took in
the early 60's worked in it's own "evil" way!
Studebaker's Divisions in the Annual Report of December 31, 1963
included:
Chemical Compounds Division (STP)
Clarke Floor Machine Company Division
CTL Division (Aerospace Products)
Franklin Division (Home Appliances)
///////Franklin division (appliances) became part of White-
Westinghouse
Consolidated Industries which still uses some Franklin designs in today's
washers from Westinghouse, Frigidaire, Gibson, Kelvinator and some
Kenmore
branded machines. //////
Gravely Tractors Division (Garden Tractors)
Mercedes-Benz Sales Division (Yes, exactly what it says and was)
Onan Division (Generators & Engines)
Paxton Products Division (Superchargers)
Studebaker Automotive Sales Corporation
Studebaker of Canada, Ltd.
Studebaker International Division (All divisions, worldwide sales
support)
Trans International Airlines, Inc.(Kirk Kerkorian of Chrysler fame was
division president in '63!)
I forgot the Schaefer Division, which made commercial refrigeration
units.
//////////
(What about TransAmerica Financial?)
///////Trans America Financial may have been an acquisition after 1963,
or
maybe one made before 1963 and sold off before 1963. I don't know. Some
of
Egbert's acquisitions were duds, most notably, Domowatt, a European
appliance manufacturer that was essentially bankrupt when Studebaker
bought
them. This, along with Egbert's love for the Automotive Division, sealed
his fate with some members of the board. Strict financial types on the
board were very upset that a man they had supported to diversify the
company
away from autos was so distracted with saving the Automotive Division, he
wasn't paying full attention to the diversification plan. As most of us
know, Egbert went in for abdominal surgery in November of 1963 and was
replaced by Byers Burlingname, a strict financial accountant type, as
President of the Company. Richard Nixon was also an advisor to the
Studebaker Board during this time, seemingly only on legal matters. He
wasn't involved in decision making it most likely seems. Egbert's
health
problems were a convenient excuse for his disappearance. He passed away
in
1969.
////////////
The cars disappeared, but the company didn't!
------
AM General connection -
This is the way I understand the connection to AM General. If someone
has a
better understanding, please explain it to me. There hasn't been a whole
lot written in old car hobby books about it.
When Studebaker closed South Bend, they had several contracts with the
military to build military trucks. These were the thing of most value
that
remained after the closing. The Chippewa plant had plenty of room to
build
both pickups and military trucks. After December 1963, no pickups or non
military trucks were built in South Bend. I'm not sure of the exact
timeline of the following events. It is my understanding that the
contracts
to build military trucks were sold to the Kaiser Corporation, and they
more
or less took over the portion of the Chippewa Truck Plant that contained
military truck plant assembly operations.
Kaiser Corporation (famous for Jeep) was purchased by American Motors
Corporation in 1970. At that time, AMC either was not interested in the
military truck portion of Kaiser's business, or that business was split
off
for some other reason, and AM General was created. They continued to
operate the Chippewa Plant and they built a new plant on the east side of
Mishawaka.
Today, the portion of the Chippewa plant that AM General occupies is
simply
offices and storage and warehousing. AM General also uses the test track
at
Chippewa. Just a few years ago, Chippewa was used to rebuild big 6X6
trucks
under contract to the military. This contract ended, so no vehicular
activity is taking place there now. Hummer production and the new,
almost
completed, and GM supported, H2 plant all are on the east side of
Mishawaka.
The Chippewa Plant was huge, and was the nicest Studebaker facility in
South
Bend, being built for war production in the 40's by the government. It's
modern, fully air conditioned, and has solid hardwood floors throughout.
Wright Cyclone and Jet engines were among the things produced there along
with trucks. Right now, if you go by it, there's a huge sign with a
"circle S" proclaiming it the "Studebaker Business Center". The Tire
Rack,
and several other businesses occupy space there. It's a "business
incubation center", and space is available for lease. The Tire Rack has
built a new facility out by the Airport, so it will soon be leaving
Chippewa.
There was a group locally, before the events in Georgia, that tried to
buy
the rights to the Avanti from the Caffaro's and hoped to bring production
back to South Bend in a small portion of the Chippewa Plant. That was
when
the sign was erected in front of the Chippewa plant. This ill fated
venture
even proposed to name their new venture "The Studebaker Corporation". I
don't know what exactly happened. I'm not even sure of the ownership of
the
Chippewa Plant. It may belong to the city or county, I'm not sure.
AM General can claim some connection to Studebaker. They certainly
wouldn't
be in the area if it weren't for Studebaker.
-----
The Hummer isn't built in an old Stude factory. The original Hummer
Plant
was built in the 1970's on the East side of Mishawaka, IN. Parts are
stored
in old Stude facilities (Chippewa & South Bend Main Body Plant) that are
taken to Mishawaka and used to build the Hummer, though. The H2 plant is
almost completed, and sits right next to AM General's Hummer Plant on the
East side of Mishawaka.
-------
I'm sure Egbert drove more
than one Avanti while at Studebaker. He had an early one, which had no
drip
rails on it, if one story about the Avanti is true. Egbert is said to
have
opened the door on a rainy day and soaked his pants before an important
meeting. It's said he stopped the line immediately after the meeting
until
drip rails were developed and installed.
The Avanti he took away with him from Studebaker (R4130) is described in
the
Summer 1999, Issue 108, Avanti Magazine. It was used as a running
prototype
for proposed 1964 changes. A frail Egbert is said to have sold this car
to
a Country Club employee in 1968. Egbert enraged several union and
management people at Studebaker by choosing to drive a Mercedes before
the
introduction of the Avanti.
I have no idea about the Daytona his wife drove. Both claims the
gentleman
made are possible. Living in the South Bend area my whole life, I've
seen
several Studes sell with stories attached of their history as company or
celebrity cars. A good Stude friend of mine owned the last company car
used
in South Bend, a white '66 Daytona with factory air and vinyl roof.
------
I was looking to rent a storeroom and got talking to the landlord about
cars. Turns out he has a '64 Avanti that his dad won in a sales contest
when he worked for Clarke. His father busted tail to win the contest
and when he won they announced that there were no cars to give as a
prize since the Avanti was dropped by that point. As a compromise they
gave him Sherwood Egbert's '64 (R1, auto with air) but he had to go to
the east coast (from Pittsburgh, PA.) to pick up a Mercedes and deliver
it to South Bend to Egbert then take the Avanti. His father did this
and has pictures with Egbert. He still has the car although it hasn't
run for awhile. He says he is planning to put it back on the road some
day. I told him I'd write an article for the magazine but he said that
he plans on writing one complete with pictures.
------
June 2002-
Actually, Studebaker did not own TWA. It did own Trans International
Airways,
which was primarily a charter and freight operation based in (if memory
serves
me) Oakland, California. TIA was acquired in 1962.
Though Studebaker's big acquisition push began in the late 1950s, the
company's history of acquisitions was almost as old as the company
itself.
The motive behind the final drive to diversify was to get Studebaker out
of
the automobile business. In addition to STP, Onan, Paxton, CTL and TIA,
Studebaker acquired Gravely Tractors, Gering Products, Schaefer Co.,
Wagner
Electric, (refrigeration) and a few others.
Studebaker was not acquired by Consolidated Edison, which is a New York
utility. Rather, it was purchased by McGraw-Edision, another
conglomerate,
in 1979. This was the effective end of Studebaker. McGraw-Edison later
was
acquired by Cooper Industries.
This gets a little confusing. What fell into the public domain were the
Studebaker trademarks, such as the distinctive logos, etc. However, once
McGraw-Edison acquired Studebaker-Worthington and dissolved the corporate
entity, anyone was able to incorporate a business as the Studebaker
Corporation or derivation thereof provided no one else had already done
so.
In theory, a company could organize as the Studebaker Corporation and
manufacture motor vehicles under the Studebaker name. They could defend
the
use of that name for all new vehicles. However, they could not control
the
name or trademarks as they apply to vehicles and accessories produced by
Studebaker between 1852 and 1966. In other words, there is no threat to
our
hobby.
Leighzer
1950 2R6
1955 Commander 4-Door Sedan
----------------------------------
aug2003
the Russians started calling trucks, any truck, a
Studebaker due to the numbers and reliability of the Studebaker trucks
brought to the country during WWII. The Russian Military copied the
design
of the trucks for their own locally built units up to the end of the
USSR.
It's also been shown here on the group that the standard Russian luxury
car
of the 50's-70's was a direct knock off of the '55 Packard.
===========================
Sep 2003
A couple of years ago a group of the Chicago-AOAI took a tour of the
NEON
plant in Belvedere, IL; they crank out 1,000 NEONS/hour, and it's nearly
"untouched by human hands" while robotics assembling those little
"sardine
cans on wheels" -- it was a "state of the art" auto assembly plant.
But in a far corner of the plant a "bicycle chain" driven, clanking and
squeaking, assembly unit moved door windows to the NEON door assembly
robot. It was ancient, and painted the distinctive "Studebaker Green"!
Our tour guide sheepishly admitted it had been purchased from Studebaker
in
1965 in South Bend, and even with the sleek assembly line no one had the
heart to scrap it -- unlike the modern "state of the art" units this
vintage Studebaker material mover had NEVER broken down in nearly 35
extra
years of service -- the Avanti wasn't the ONLY "Studebaker" that has
refused to die!
Mike Shutko
=================================
A few years ago former Avanti Service Manager Tom Taberski showed me a
photo he had in some files that was sent to Nate Altman; a couple
accidently drove off a cliff in Europe; when it came to rest on the
roadway
below the entire front end to the, and including, the dashboard, and
windshield was GONE. The middle-aged couple simply unbuckled their
seatbelts and exited the "totaled" Avanti walking straight ahead out of
the
Avanti! :-)
Mike Shutko
===========
Studebaker Sliding roof Wagonaire////vs GM 2004 SUV w/sliding roof///
GM can't come up with anything original.... they have to copy a 40+
year old Studebaker design!!
I was talking with a couple of GM designers last month at Tom Kellogg's
memorial service, and several of the top designers there are Studebaker
fans and admirers and that is how they know about our favorite car's
unique features.
When Tom Kellogg was working on the AVX, he walked into one of the top
GM designer's office and was handed the plans, blueprints and drawings
for the Firebird.... They thought a great deal about Tom and Studebaker
over in GM design headquarters.
==============
The rear sliding roof in the Studebaker station wagon received wide
admiration in Detroit. While we were trying to develop more OEM
business
for Sky-Top (besides Avanti) we had a sales rep in Detroit. One day
(possibly in '86 or '87) we visited Ford engineers in Dearborn. Among
other things we had a drawing of a moonroof opening up the rear of a
station wagon with a tent over the opening and tailgate to create a
mini-camper. That brought smiles to the engineers and they took us to
their garage to show us a Studebaker station wagon in very good condition
-
with that sunroof (metal panel of course). It was part of their
collection
of memorabilia that they could study in their design center. I wouldn't
be
surprised if it was still there. Incidentally, Lew, the drawing was done
by a friend who used to be the cartoonist for the Post-Dispatch.
Ernie Wolf
'82 Avanti II
RQB 3479
----------------------
------------------------
"Kelvenator" appliances was a Studebaker subsidiary that lasted the
longest as a non-automotive entity. Blame Mercedes-Benz, they entered
into an agreement for the old German-American Studebaker Corporation
to sell their Mercedes line in the Studebaker dealerships, what there
were of them for $1 million about 1953 -- because following World War
II NO American firm would touch Mercedes-Benz with a "10-foot pole"!
The famed "Gullwing" Mercedes would have never seen the "American light
of day" with out Studebaker's limited aid.
The red "Gullwing" that had been in the Studebaker National
Museum was among the first to "abandon the sinking ship" as it's owner
now displays it in the world renowned Auburn-Cord-Duesenberg Museum, in
Auburn, Indiana, FYI!
But, I digress!
When Studebaker went "belly-up" in 1966 Mercedes-Benz paid the survivors
$10 million to regain the American marketing and sales rights to sell
their, now sought after, Mercedes' motorcars from their own American
dealerships! And today they swallowed-up Chrysler whole -- why are we
calling them among Detroit's "Big Three"? Technically it's now the
American
"Big Two" automakers -- in another couple of years of foreign
acquisitions
it will soon be America's automotive "Big ZERO"! :-)
Anyway, with this $10 million influx of cash, it allow Studebaker's
"fortunate few" to keep the name alive and functioning until 1980 when
the dying Studebaker finally drew it's last breath! :-)
----------------------
You are right about Nash-Kelvinator, but Studebaker did have a hand in
appliances sort of. One of it's many subsidiaries built refrigeration for
grocery purposes, the name escapes me now. And, Studebaker SOLD it's
rights
to distribute Mercedes-Benz in 1964, not 1966. Studebaker NEVER went out
of
business, was making a profit when it discontinued production in March
1966
of automobiles, and existed as Studebaker-Worthington in 1967, then
Magraw-
Edison, and one or two other incarnations, and today as Cooper Industries
in
Houston, Tex. which makes Anco wiper blades and other auto related
products.
One of Packard's offshoots still exists as Packard Electric Co. Neil
Dickson Louisville
-----------------------
Studebaker's commercial refrigeration products company
was Schaefer, owned from 62-75 or 76. From 62 to 67
they also owned the largest 'large' appliance
manufacturer in Canada, Franklin, who also built
'house brand' appliances for other companys.
----------------------------------------
Nash merged with/bought Kelvinator. Nash the merged with Hudson and
Willys
to become American Motors, the only current survivor being the Jeep.
Pierce merged with Stude for a while but that never really worked and
they
went there own way again shortly.
Stude owned Shaefer (sp) and Franklin for a while, along with SnoPony if
you want to call that a company in the refrigeration field
...................
Studebaker watches were an independent operation not related to the
automotive or any of the other enterprises.
Packard Electric was not part of Packard - it was part of GM! The light
bulb business may not have been part of the business (run by a different
family member) that went to GM and may have gone off separately, don't
recall. Note that it was different family members involved in the
various
Packard enterprises. AFAIK Packard Motor Car Company pretty much limited
itself to motor cars and trucks and motors for independent sale
(primarily
marine sales).
As an aside at least up thru the early 70's the Avanti plant contained
the
filing cabinets with the Packard marine prints and the Mercedes prints.
Dunno what happened to them, nobody seems to know. FWIW the PAckard
marine
filing cabinet was on the first floor, the Mercedes prints were up on the
third floor.
======================
Nov 2003
Hindsight is wonderful, so we now know:
Nothing really could have saved Studebaker after the postwar seller's
market turned to a buyer's market in 1949. The seller's market was
artifically propped back up for about a year by the Korean War threat
in late 1950 ("...I'm not going to go through another war without a
new car").
That short boon for sellers was soon over. The next war mortally
wounded the independents: Ford declared production and market
penetration war on General Motors in 1953. The General felt the threat
no more than like an annoying flea. The real losers were the
independents, who simply got slaughtered.
George Romney's vision, though boring, was effective for American
Motors. It bought American Motors more time than did the mismangement
and confusion at Studebaker-Packard, with Curtis-Wright controlling
much of Studebaker-Packard starting in the fall of 1956, or
thereabouts, until they backed out.
My father, Lu Palma, is an expert in marketing. He doesn't know a
whole lot about the nuts and bolts of automobiles, but he knows
marketing. During the period 1953 through 1956, he and his brother had
franchises for Packard, Nash, Studebaker, Willys, and Kaiser. In fact,
they had franchises for every independent, all under the same roof,
except Hudson.
It is Dad's firm opinion, and always has been, that the vision of Nash
President George Mason was the last real chance for the survival of
all the independents. By 1948, Mason accurately foresaw exactly what
was going to happen to all the independents during the 1950s. Mason
pleaded with the executives and Boards of Directors at Packard,
Studebaker, and Hudson, to join with him at Nash and form American
Motors in the late 1940s, when all four of those companies were
financially strong from their war profits, and together could benefit
from the manufacturing economies of scale that the "Big 3" enjoyed.
Well, George Mason found out they didn't call 'em "independents" for
nothing. The four companies were too fat and sassy to heed the
prophet's call. By the time the mid-50s rolled around and Mason's
prophecy was unfolding before their horrified eyes, the four just
didn't have the capital to make it happen. Mason died in 1954 or 1955,
too, so any chance of his vision coming to fruition died with him.
American Motors survived on George Romney's vision. Studebaker
survived as long as they did due to three factors: Momentum, V-8s, and
Trucks.
1. Sheer Momentum, because they were fairly large with quite a few
dealers. (Momentum had likewise carried Ford Motor Company from WWII
through the marque-saving 1949 Fords, since the 1946-1948 Fords were
hopelessly obsolete from a technological standpoint.)
2. V-8 Engine. Studebaker had their own V-8 engine, and it was a good
one, right when the marketplace demanded it. Without their V-8,
Studebaker would have been hard-pressed to survive into the 1960s.
Developing their own V-8 was arguably the smartest single marketing
move made by Studebaker after WWII.
3. The truck line. Although Studebaker didn't pay enough attention to
the truck market after the mid 1950s, at least they had something to
offer in markets where trucks were important. The Champ line in the
1960s helped a little, too, in keeping a truck presence before the
market.
Without those three items, Studebaker probably wouldn't have had the
credit-worthiness, even as shaky as it was, to finance Harold
Churchill's 1959 Lark projet. The 1958 Studebakers and Packards might
well have been the last of BOTH marques, not just Packard.
Bob Palma
=========================
Buildings
============
I would say about 50-60% of "South Bend Main" remains standing. The
large
body plant along the N.Y.C. Railroad still stands and serves as a
warehouse
on the north side of the complex. Just about everything south of Sample
Street remains standing, if you have a map to reference. The former
Administration Building is home to the South Bend Community Schools
Administration.
The first Stude building to go down was the Powerhouse, where the City
built
a Central Police/Fire Station and Street Dept. complex in the early
1970's.
Then came down the Transwestern Building (Former Truck/Stude Avanti
Assy),
and the former Avanti Motors buildings, in the late 80's. Most recent
demolition (2000) included Bldg's 53&58 (Former Newman & Altman for the
new
St. Joseph County Jail), and a complex of buildings that were used to
house
the maintenance dept. for Studebaker just southwest of the main body
plant
along the railroad (which during the 70's & 80's housed Avanti Parts
Corp.).
Those gave way for a road salt storage dome and garage for the City.
Other
smaller buildings north of Sample Street have also been removed.
The Chippewa Street Truck Plant, built during WWII on what was then the
far
south side, remains standing as a whole and houses many different
businesses
as an incubator site. A large "Circle S" sign stands at it's entry way.
The complex is called the Studebaker Business Center. AM General has
space
there (NOT assembly, but testing and warehousing), and new Hummer H2's
are
tested on Chippewa's former Stude test track by GM/AM General. Also, The
Tire Rack, which just built a new facility in the Blackthorne area (by
Michiana Regional Airport), got it's start in South Bend at the Chippewa
Plant. The Chippewa Plant is one of the nicest and well maintained of
the
remaining buildings.
We also can't forget Bosch (Bendix) and it's utilization of the former
proving grounds 10 miles west of the city!
The current site of the Studebaker National Museum is the former
Freeman-Spicer Stude Dealership, just north and across the tracks from
the
Administration Bldg. It was the largest volume Studebaker Dealership for
years. Of course, discussing this matter any further may cause this
thread
to proliferate into eternity. Right now, plans are to demolish the
current
building and build a new museum, some blocks north and slightly west of
the
present location, next to a history museum on Chapin St. This will free
the
Freeman-Spicer property for another development. Like I said. That's
the
plan. Right now.
Demolition is scheduled to start this spring on a series of buildings
south
of Sample Street. I'm sorry to say, it's probably for the best. Many of
the buildings left have not been maintained much (if any) in the last 40
years, they've become home to vagrants, and they are too large and/or
inefficient to house a modern business without breaking it's budget for
heat
and repairs. Right now, SASCO is housed in the Engineering Building,
which
is probably the most worthy building to be saved south of Sample (maybe
in
the whole complex). The former Main Assy Line (South Bend/Allied
Stamping),
just south of SASCO, will come down during the next phase of demolition.
To
avoid confusion, again, SASCO (the former Engineering Building), looks to
be
safe!
A couple of weeks ago, vagrants trying to stay warm in the area close to
the
Main Assembly Plant (South Bend Stamping), set a building on fire. I
drove
by while that fire was burning on a Sunday afternoon not too long ago.
The
building was saved, despite the fact it had not had electric or water
service for several years. It's location close to the Fire Station
(Powerhouse) ironically saved it to be demolished next spring.
If you want to see the area and get a feel for the way it was in 1963,
I'd
suggest doing it soon. You can still stand just west of the new jail and
look down the corridor between the Engineering Building and the Engine
Assembly Building and see where the photographer stood to take the
picture
that showed the last shift leaving the plant for Time Magazine.
Some of the buildings will remain for a long, long time (maybe 15-25% of
the
complex). Some won't. I know many on the group will disagree with me,
but
chances are, if these buildings were in any other City, they would have
been
down long ago. The sheer size of the complex is one reason they still
stand. The property wasn't worth the reclamation cost.
Finally, property is becoming more valuable in the area, and recently
renovated areas of the complex house businesses that wouldn't have gone
there if the old buildings still stood. Removing the rest of them that
are
useful only to the vagrants will only help the area.
The Studebaker Buildings have become an identifying part of the area for
many who drive by and don't even know what they once were. Economic
forces
are now in place to make the demolition feasible. Good or bad?
Certainly,
some of both. I hate to see them go. Maybe the loss of the "cancerous"
areas will serve to make the surviving buildings even more valuable and
viable. That's how I have forced myself to look at it.
Ken Wolford - Nov 03
===============
Engineering Building
================
The building has the most significance and history of any building left
in
the complex. It's had a pretty continuous string of tenants, and has
with
some exceptions been maintained better than the other buildings south of
Sample. The facade put up on the front of it during it's time as the
Welfare Dept. has been removed to reveal it's Studebaker Wheel logo
again.
It's tucked nicely on the northeast corner of the south of Sample section
of
the complex. It is not on any list for demolition.
Ken Wolford - Nov 03
=================
With the success of the Lark, Studebaker went wild trying to add dealers.
There's no doubt their standards were lax and marginal dealers were added
strictly to make the recruiting numbers.
I knew a used car jockey back in the 1980's who ran a very successful lot
in
a small town. He had been in business since the 1940's. Studebaker came
after him hot and heavy several times in the 1950's and especially in the
early 60's to take the line and become a new car dealer. He never took
it.
I asked him why. He replied, "I asked them why should I ruin my business
to
become a Studebaker Dealer?" After asking each new Zone Rep this once or
twice, they would leave him alone.
The town he was located in was only 60 miles from South Bend. He had
nothing against Studebakers. But, Studebaker's reputation had been on a
crash course since the mid 1950's, and very few had confidence the tide
would ever turn back their way. The public considered them out of the
business before they actually abandoned it. And they never recovered
from
that lack of confidence. They could not attract many of the best dealers
in
the business.
I remember commenting here on the group a while back that Studebaker's
problems were like a ball of twine rolling downhill gathering speed and
more
twine as it descended. Some dealers were in the ball of twine. But they
had lots of problems as company that just added speed and bulk to the
runaway ball.
Ken Wolford dec 03
=============================================
=================
Plotting, intrigue marked postwar era at Studebaker
DIALOGUE
By ANDREW BECKMAN
The 1947 Studebakers, the result of a surreptitious design
scheme by disgruntled employees, reach the end of the assembly line.
Photo provided
"First By Far with a Postwar Car,'' Studebaker proudly proclaimed
as
the company debuted its radical 1947 models in May 1946. Indeed, the 1947
Studebakers were enthusiastically received by the press and the public
and
were presented as yet another aesthetic triumph for Raymond Loewy and his
troupe of designers. In reality, the 1947 Studebakers were created in the
midst of a coup taking place in the Studebaker hierarchy.
Studebaker retained Raymond Loewy Associates in 1936 to head up the
design department. Loewy was one of the pioneers in the field of
industrial
design and by the 1930s had built a successful business with wide name
recognition. Loewy excelled in marketing his firm's sometimes radical
designs to reluctant clients and served as a very effective "front man''
far
Raymond Loewy Associates. His lifestyle reflected his celebrity status,
which only furthered the exclusive "Designed by Raymond Loewy'' mystique.
By
1949, Raymond Loewy Associates had over 180 designers on staff with
offices
in New York, London, Paris, Chicago, Sao Paulo and South Bend.
Loewy's far-flung offices meant that he was not a direct manager of
the Studebaker account. He did make regular visits to South Bend and
directly supervised the work being done under his name. Loewy appointed a
"design chief" of his South Bend office to oversee the day-to-day
affairs.
One of Loewy's design chiefs was Virgil Exner. Exner joined Raymond
Loewy Associates in 1938, having previously been at Pontiac. Exner
contributed to the successful 1939 Champion and was recognized by his
peers
as a talented designer.
Loewy had always taken personal credit for his company's work even
though most of it was done by his subordinates. Exner chafed at this
practice and reportedly had several heated conversations with Loewy on
this
topic. Exner's philosophy was that a man should serve as a designer or a
salesman, but not both. However, from Loewy's standpoint, the Loewy name
by
itself sold many designs, and his name was on it whether it was a success
or
failure. This fundamental difference between the two men would continue
to
fester during Exner's tenure with Loewy.
The third player in the drama was Roy Cole, Studebaker's vice
president in charge of engineering. Cole came to Studebaker in the early
1930s, having worked previously as an independent engineer in Detroit.
Cole
did not care much for Loewy. He felt that Loewy's services were too
expensive and his ideas too radical. In Cole's opinion, Studebaker could
get
along just fine without Loewy.
Cole and Exner worked together quite often in the course of their
jobs. Inevitably the subject of Loewy would come up, and the men became
acquainted with each other's displeasure. However, neither man was in
much
of position to do anything about it; Loewy did not work for Roy Cole, and
Exner was a subordinate of Loewy.
Cole saw an opportunity to get rid of Loewy when Studebaker made
the
bold decision to introduce all-new styling immediately after World War
II.
With no new automobiles being produced during the war, the pent-up demand
was enormous. All of Studebaker's competitors dusted off what they had
been
producing before the war. Studebaker, on the other hand, chose to grab
the
limelight by unveiling completely new styling. To make his plan work,
Cole
would have to enlist the help of Exner.
In late 1944, Cole approached Exner with a bold plan. He asked
Exner
if he would create a design for the new postwar Studebaker on the sly.
The
work would have to be done outside of the Studebaker design studio and
without Loewy's knowledge.
Exner agreed to the plan and prepared a room in his home to serve
as
the clandestine design studio. Cole arranged to have a drafting table and
all necessary design equipment shipped to Exner's house.
Meanwhile, Exner continued to work during the day for Loewy. To
further tip the scales, Cole gave incorrect dimensions to the Loewy group
and the correct set of dimensions to Exner. Exner would work on the Loewy
group's designs during the day, and then work on his own design at home
at
night and on weekends. Within a few months, the models were ready, and a
board meeting was convened to review them.
At the meeting, Loewy was more than slightly surprised to see a car
being shown that he was totally unaware of. Compounding Loewy's
embarrassment was the fact that the Loewy group's model was built to the
"incorrect'' dimensions given to them by Roy Cole! The board elected to
go
with the Exner model, much to Loewy's chagrin.
Loewy promptly discharged Exner, who was quickly hired by Cole in
the
engineering department. In 1949, Exner left to join Chrysler, where he
earned fame for the "Forward Look'' Chryslers of 1957. Cole emerged from
the
affair remarkably unscathed, and retired a short time later.
The irony of this sordid affair is that Loewy received full credit
for
the 1947 Studebakers, the very thing that led Exner and Cole to conspire
in
the first place. The cars were a resounding success and cemented
Studebaker
and the name of Raymond Loewy as a styling leader.
Andrew Beckman is the archivist for the Studebaker National Museum.
Dec 2003
==============================================
===========
9 December 1963
The Studebaker Board fired Sherwood Egbert as President, discontinued the
Avanti model, all on November 22, 1963; but the nation was too
preoccupied
with the assassination of President Kennedy in Dallas, TX, to "give two
hoots & a holler".
=====
---------------
The South Bend CBS afilliate (WSBT) ran a short segment on the
anniversary
on tonight's news. The segment starts out with Walter Cronkite reporting
the death of President Kennedy two weeks prior, and then goes on to say
South Bend was soon to get another blow of bad news on "Black Monday"
that
same year. Les Fox, the 1963 head of UAW Local 5 is then interviewed.
Many
locals still refer to this day as "Black Monday"
The anchors of the 6:00 news are the senior members of the news staff,
and
one of them was a freshman at Notre Dame on Dec. 9, 1963. He commented
he
was given the assignment of covering the story for the college newspaper
and
radiorstation, but the community was in such disarray, no one could
direct
him to any news conference pertaining to the announcement. He's almost
sure
on that day there was none. The news of the closure was transmitted from
the Board Meeting in New York.
Many National reporters then in South Bend predicted grass would cover
the
streets of South Bend soon because of the news. Naturally, a little
pride
was shown that that didn't happen. Then, the head of the local economic
development committee said they don't actively try to recruit large
employers who build on 80 acres like Studebaker because if they leave,
another Black Monday could happen. They have been very active in
diversifying and recruiting smaller, more varied businesses since 1963.
And
standing among the Stude buildings, it was said "We are trying to avoid
future scars like these." (And we wonder why the manufacturing base is
leaving the country?)
The subject of the buildings was discussed among the anchors after the
segment closed. They agreed amongst themselves that the personal &
emotional scars have mostly healed, but the scar on South Bend hasn't,
and
some of the buildings can't come down soon enough.
As I've said before, I have to partly agree. The area will never recover
as
long as some of the large, unusable behemoths stand. The buildings
worthy
of preservation need to be saved, and it would be best if the remaining
and
overwhelming scars were removed. I hate to see them go, but the good is
dragging down the bad, and the good won't be able to really shine until
the
area is improved. Kind of like having so many Studes, you can't keep
them
all inside or restore any of them (I'm sure none of us are like that
here,
though!).
=================
We should never underestimate or discount the terrible impact the closing
had on the employees and their families that remained on the payroll
until
12/63.
Studebaker employed 24,000 people in South Bend during the peak years of
1950-51. By 1963, the force had dwindled to 6,000. In the news story
tonight, it was said about another 4000 were employed in '63 at suppliers
to
Studebaker in South Bend (Like JP). From the mid 1950's (with the
exception
of '59/60) on, it was joked that you were an optimist if you brought your
lunch to work at Studebaker. Temporary shut downs were that common.
Studebaker lay-offs caused problems for other employers in the area
because
if Studebaker called back employees, they might lose much of their staff
on
short notice. That prevented other businesses from locating in South
Bend.
Overall though, just to avoid misunderstanding, South Bend today is
better
for the experience in most local's resident's eyes. South Bend was one
of
the first cities to sustain a huge loss like this. South Bend was on
it's
way back in the 70's and 80's while other cities were just experiencing
such
events for the first time. Fort Wayne, IN was brought to it's knees with
the loss of a huge International Harvester plant in 1983. I can remember
driving through Kokomo, IN in the early 1980's when half the stores in
the
Kokomo Mall had left because Chrysler and Delco were down to one partial
shift. Flint, MI lost Buick. South Bend had been there before when all
this happened. South Bend was even being looked to for advice!
Studebaker
had made South Bend grow, even in it's loss!
Now, in 2003, DaimlerChrysler has announced the closing of it's
Indianapolis
Foundry. Hardly gets mentioned in the news, does it? It takes a
fraction
of the people to manufacture cars that it did in 1963 because of
automation.
Imports are grabbing more and more of the market. More jobs have been
lost
through those developments than those brave 6000 souls who were some of
the
first to face the hard realities in 1963. But they were some of the
first,
and they should be remembered for that too. Studebaker was always ahead
of
it's time. In many ways.
==========
===========
The Packards were wealthy before they got into cars.....mostly in
hardware
and timber businesses. Brothers James and William were both degreed
engineers with the intellect - and money - the persue what interested
them.
Their Packard Electric made all sorts of electrical supplies, bulbs, etc.
Both brothers were interested and involved with building the first cars -
again mainly as an engineer exercise. The first "production" models were
turned out in the shops of Packard Electric before they created The Ohio
Automobile Company. Investors in that enterprise included George Weiss.
W.A.Hathcher and Henry Joy (of Lincoln Highway fame). The outside
investors
were interested in expanding the business - the Packards not so. The
investors prevailed.....PMCC was never a small, struggling
concern.....the
investors had big money and had the Detroit factory designed and built
(first
major Detroit car company) and entered the business "full blown". The
Packards retained a goodly chunk of stock and James remained as honorary
President, but really never had "hands on" interest once the firm left
Warren, OH.
They retained interest in Packard Electric until it was purchased by GM
to
become Packard-Delco.....they were paid in part with large chunks of GM
stock. It's now part of Delphi.
Unlike the Studebakers who lost about everything in the Depression when
Stude
went into receivership (George Studebaker wisely sinking all his money in
the
South Bend pocket watch company - when wrist watches were coming
in).....the
Packards retained - and still do - their fortune.
One note: the original plan was to move Ohio Automobile to
Cleveland.....but
the city fathers there didn't want to attract another "dirty" industry to
town
- but were hoping to consolidate Cleveland's position as the wooden
clothes
pin capital of the world (honest, I'm not making this up). Detroit
wasn't so
pickie and welcomed the company - which required dropping "Ohio" from the
name.
That was 1903.
BUT....Stude didn't buy Packard.....although the smaller company, Packard
bought Studebaker to obtain a low price line and more outlets.
Unfortunately,
Stude was losing so much money that it sunk the entire operation within 3
years, requiring the sale of the Packard assets to keep South Bend going.
Blah blah blah....so true that PMCC and Packard Electic-Delco-Delphi were
the
same guyz, but entirely separate companies. But as many of you know,
Warren,
Ohio, is justly proud of both connections.
Jay
RQB2880. ec 2003
===========
Here's a scan of the back of the Stude 1963 Report to Shareholders
converted
to text (I'm glad they didn't have OCR scanners and software when I was
in
school. The temptation would have been too great!):
STUDEBAKER CORPORATION
CORPORATE OFFICE-635 SOUTH MAIN ST.
SOUTH BEND 27, INDIANA
Divisional Offices and Plant Locations:
Clarke - Floor Machine Division,
Muskegon, Michigan
CTL - Missile/Space Technology Division,
Cincinnati, Ohio (home office)
Santa Ana, California
Franklin - Appliance Division,
Minneapolis, Minnesota (home office)
St. Cloud, Minnesota
Bloomington, Indiana
Webster City, Iowa
Jefferson, Iowa
Calt. Ontario, Canada
Guelph, Ontario, Canada
Leini, Italy (Domowatt, S.p.A.)
Gravely - Tractors Division,
Dunbai, West Virginia (home office)
Albany, Georgia
Torquay, Devon, England
International Division, South Bend. Indiana
Mercedes-Benz Sales, Inc., South Bend, Indiana
Onan - Engine/Generator Division,
Minneapolis, Minnesota (home office)
Chisholm, Minnesota
Paxton - Supercharger Division/Product Evaluation,
Santa Monica, California
Schaefer - Commercial Refrigeration Division.
Minneapolis, Minnesota (home office)
Aberdeen, Maryland
Studebaker of Canada, Ltd. (Automotive),
Hamilton, Ontario, Canada
Studebaker Automotive Sales Corporation,
South Bend, Indiana
STP - Chemical Compounds Division,
South Bend, Indiana
Trans International Airlines, Inc., Oakland, California
Transfer Agents
First National City Bank, New York
Continental Illinois National Bank and Trust Company of Chicago
Registrars
The Chase Manhattan Bank, New York
The First National Bank of Chicago
Certified Public Accountants
Ernst & Ernst, Chicago
========================================================
You have to remember, Studebaker played down this closing business as
much as possible. The official position was that they were merely
transferring world-wide assembly operations to more modern, efficient
facilities in Hamilton. "Nothing to get excited about, here, we're not
going out of business or anything....just a routine business
decision." (Pardon us while we light a candle to see where we're going
while whistling in the dark...)
Therefore, the actual closing in South Bend occurred with the minimum
fanfare possible. That last car, which JP describes later, was
actually hidden away for some time so as to be "no big deal."
They sure wouldn't want to interview the union boys: Less than two
years previously, just when the 1962 models got to rollin' out the
doors pretty good, those can't-see-beyond-the-end-of-my-nose dodos
went on strike, crippling production when Sherwood Egbert needed to
get those stretched, popular 1962 Larks and fresh GT Hawks SHIPPED.
But union mentality being what it was at the time, even though they
probably had a better package than comparable workers at The Big
Three, they walked out and left the lines DOA for...how many weeks was
it? BP Dec 2003
======================================================
.did anyone see the article in the WSJ on the similarities of
Studebaker and Enron ??? I did not, but have heard a few stories from
Studebaker employees (not all automotive division workers) who clearly
stated how Studebaker screwed the workers out of serious money in
benefits, pension etc...As I understand it, much of the cost-cutting,
union concessions on pay, benefits, pension, etc, were actually rolled
into the other (more profitable) divisions (e.g. STP or Gravely). It
was a "textbook" case on how to improve the overall corporation by
cleaving off the unprofitable division, it's assets, people, pensions,
etc. I had a patient who's 1st job for the FDIC was to investigate
Studebaker's corporate books after the "auto division" closure. Very
interesting story. He (they) found little/nothing illegal, BUT, their
findings found significant corporate, paper/money shuffling that did
fuel the fire for significant legislation to protect future
consolidations and workers' assets....Not too nice a picture......In
essence: management decided to strip down all that was valuable from
this losing (auto) division, and pour it into the profitable
divisions. Moving to Canada allowed the corporation to "sidestep"
existing US laws protecting vehicle owners, workers, pensioners, and
many more in the greater SB area....
------------------------------------
Excerpt from SB Trib - Dec 2003
By GENE STOWE
Tribune Correspondent
Harry Kowalski, an employee for Studebaker from 1942 to
1963,
speaks about his working memories during an open house for former
employees
Sunday at the Studebaker National Museum in South Bend.
Tribune Photo/ MARK SHEPHARD
Ray Burnett was national sales training manager for Studebaker when
the company closed 40 years ago.
"I remember that morning very well," he said. "That was a dark day.
We
knew it was coming."
The Studebaker National Museum on Sunday marked the anniversary
with
free admission for former employees and their families.
"We realize that Studebaker belongs to South Bend and South Bend
belongs to Studebaker," said museum board member Ron DeWinter, who went
to
work at Studebaker soon after he turned 18, just before the closing.
"We're trying to get across the beautiful relationship that this
company has with the community. I worked there three months. My dad
worked
35 years."
The closing was hard on South Bend -- DeWinter said it took 10
years
to recover property values lost when the business left -- but fond
memories
of better days remain.
Becky Bonham, director of Studebaker National Museum, said she
hopes
to start a Studebaker veterans club with names collected at the event.
"You don't celebrate the closing of it, of course, but we wanted to
mark the date," she said.
Scores of workers poured into the museum Sunday afternoon,
gathering
in groups among the gleaming cars to reminisce about the Studebaker style
they miss.
Burnett stood near a 1950 Commander Starlight Coupe just like the
one
he drove to Detroit when he went to work for other automakers before
coming
home to Studebaker.
"When I was in Detroit, I worked for Ford, worked for Chrysler,
worked
for GM," he said. "Of all the companies -- and I worked for all of them -
-
Studebaker was by far, by far, the best.
"I never had a day at Studebaker I didn't enjoy.
"It's just a feeling you had when you were there."
The feeling was family, recalled Burnett, whose father and brother
also worked for the company. Others visiting the museum said the same.
"It was all family," said Donald Cornelis, who worked at the
factory
from 1946 until he became a South Bend police officer in 1951.
"My father worked there 43 years. When I got out of high school,
where
else was I going to work? I applied on a Friday. I was working on Monday.
I
worked on the same floor with my father. He was a solderman and I was
door
adjuster. The Studebakers were all family-oriented."
Cornelis pointed out a police uniform on a mannequin in one of the
displays and said the museum is preparing a 1964 Studebaker police car
for
display.
His friend John Istenes, who joined him at the museum, also worked
for
Studebaker.
"I started with the '50 model," Istenes recalled. "It's when they
started coming out with coil springs on the first suspension. I used to
test
every sixth Studebaker that came off the line."
He had to leave for the Korean War, but when he came home, he
recalled, "my job was waiting for me again."
After he was laid off in 1954, as the company began a decline, he
became a police officer.
"We were driving Studebakers on the Police Department," he said.
"We
fixed Studebakers."
Jessica Chalmers, a writer from Manhattan who teaches at Notre
Dame,
was doing research for "Avanti: A Postindustrial Ghost Story," a play
that
she hopes to produce next year.
"There's a secretary in the play," she said. "I found a secretary.
She
can give me more information on what skills they had to have."
Kevin Miller, born a year after the closing, browsed through the
museum remembering his father who worked for Studebaker and his
grandfather
who retired from the company.
"Dad worked there up until pretty close to when they closed,"
Miller
said. "You still kind of wish they were still around."
============================
The story of Ian Fleming's Avanti is simple; he saw the Studebaker Avanti
display at the 1962 New York Auto Show, and wanted to but of the three
displayed Avantis (Studebaker only HAD those three Avantis) that
Studebaker
President Sherwood Egbert flew all around the U.S.A. in a military
surplus
"flying boxcar" cargo plane. They promised Fleming one of the first
production Avantis, then he said he wanted it painted black. He
ultimately
ended up, after great delay, with a black '63 Avanti R2 -- it was painted
and repainted THREE TIMES because the dark color brought out all the
flaws
in the fiberglass body. Avanti II builder Nat Altman offered his version
in "any automotive color in the world, EXCEPT Black"! No Avanti II ever
left the factory painted black, according to Avanti Service Manager Tom
Taberski -- NONE. All black Avanti's are after market repaints -- just
look for the "Avanti Paint Code Sticker" (usually around/inside the glove
box/slide-out vanity box) EVERY black Avanti II I've checked out had been
painted another color according to that sticker...EVERY ONE!
But, I digress!
When his Avanti arrived the car experienced numerous
breakdowns -- I think related to the Paxson Super-Charger that no one
"over
the pond" could make sense of. Poor Ian died within several months of
receiving possession of his Avanti; last I heard it supposedly was
"cannibalized" for its parts. But check you current AOAI 2004 Membership
roster, and contact our many English owners, they should be able to
provide
a much more clear and accurate picture of what became of Fleming's
Avanti.
All I know is that I have been engaged in some literary research, and
have
been in contact with several educated Britons, and when they learn I own
an
Avanti I've had at least a quarter of the two dozen Englishmen over the
age
of 50, recount an anecdote about a black Avanti sitting on the side of
the
roadway, abandoned, in the early 1960's! :-)
Mike Shutko Dec 2003
=============================
In 1963 the factory-owned Studebaker dealership in Kansas City (MO) took
a
300 SL in trade on a new Avanti- kept it on their showroom floor for a
while.
Paul Johnson
---
I lived in KC in that era. Most of my family's Studes came from
Kincaid-Weber. I think I know the dealership you refer to, just can't
come
up with a name right now. It was the biggest one in KC and was a Packard
dealer before the merger, right?
---
I don't remember any names either. I do remember three dealers in KCMO,
one
in the south part, one in the east and the big one which was sort of on
the
crest of a hill somewhat overlooking the down town. I think there was
also
a dealer in KC, KS. Of the MO dealers I remember the one in the south,
in
'63, had taken a '63 R-2 Avanti in trade on a '64. The '63 had something
like 70,000 miles on it. When I asked why so many in a year I was told
that
it belonged to an editor or official of HotRod Magazine and he was on the
road all the time. The dealer on the east side was where I saw my first
'64
GT with a vinyl top (light blue with white vinyl). I also drove a '63 R-
2
4-speed Avanti there (first Avanti I had driven). The big dealer had
some
interesting cars- a '63 R-2 Cruiser, a '64 Daytona Wagonaire with buckets
and Powershift, etc. A salesman there told me that Western Reserve
Distilleries ordered seven Avantis when they first came out for their
salesmen to use. Sadly, Studebaker couldn't fill the order and after a
few
months it was cancelled. I ended up ordering my '64 Wagonaire through
Joe
Egle Motors in Olathe, KS (because he was close to where I lived at the
time).
Paul (fond memories) Johnson
----
Paul,
You described the locations perfectly. I just looked at some of my old
dealer brochures, and the 'big' dealer was I believe Keith Ware, 28th &
Main. There was a smaller dealer known as Michael Motors at 5751-53
Troost.
I already mentioned Kincaid-Weber. Surprisingly I didn't find any
brochures
from them, but they were in the Waldo District maybe? Don't forget
Armacost
Motors, a Stude dealer since the teens or twenties. I went to high school
with Don Armacost who is now the Pres. of a family business, Peterson
Mfg.,
which makes commercial vehicle lighting products. They have a beautiful
campus in Grandview where the fabulous Armacost Museum is also located.
----
And owner of some outstanding Studebakers and employs a real nice guy
from
Connecticut as his restoration guy.
Gary L.
-----
========
........was the caption on this story appearing in July 1945 MoToR
Magazine:
Emphatic denial is made by Studebaker of persistent and widely circulated
reports that for many months before reconversion was sanctioned by WPB
the
corporation had maintained in Mexico a large staff of technicians working
steadily on real postwar models. The story may have stemmed from the fact
that Raymond Loewy, body stylist, spent a vacation in Mexico and that
President Paul G. Hoffman went down there last spring on an inspection
trip
with some of his fellow directors of United Airlines.
Dec 26 2003
=====
That sounds off the wall, if you look in a few of the "history" books of
Studebaker, you would be surprised to find out that the Bullet Nose was
to be
the 1947 model.
One book, I forgot which one states that the 47 front design was opt'd
for
instead of the bullet nose as it would conjur up thoughts about the just
terminated war, and it might hurt sales.
According to the book the BN was introduced in 50 as we all know, but it
was to
be the 47.
While it would not surprise me that all the automakers had staff working
on
post war products.
By 1943 it was a forgone conclusion that once the Allies got a foot hold
on the
continent the war would be soon over. If you look carefully at late 1944
and
early 45 Studebaker full page ads, every month they addressed a possible
post
war problem with the automobile. I have one ad that address traffic
congestion,
one that addresses trucks having specific hours for deliveries, and
others
dealing with public transportation.
I am sure they had people working on projects, but not sure that they
woul need
to go underground when their "post war" car was already designed at the
onset
of war.
BBG
---
Jan 2004
A colleague gave me an interesting book, published (2d
ed.)in 1924 by the
Studebaker Corporation and authored by Albert Russell Erskine, president
of
the corporation. It was an update of the version published in 1918 to
provide stockholders with a history of the company from 1852 until 1923.
Some of the highlights are as follows:
1. The Studebaker family first arrived in Philadelphia,
from Rotterdam, in
1752.
2. The family trade was originally smithing and
woodworking which led,
ultimately, to wagon building.
3. H. and C. Studebaker was established in South Bend in
1852, its first
carriage being built in 1855. Carriages were later built for, among
others,
presidents Lincoln, Grant and Harrison. A large number--if not a
majority--of the wagons built for the U. S. government during the
civil
war were built by Studebaker and by 1868, annual sales approached
$350,000
4. Studebaker Brothers Mfg. Corp was organized in 1868 and
by 1874, a
major factory complex had been built with a dealers' organization and
"branch houses" being established in Salt Lake City, San Francisco,
Denver,
Minneapolis, Dallas, New York, and other smaller cities. By then, the
company was probably the world's largest manufacturer of horse drawn
vehicles. The company operated for 43 years and total sales during that
period were $119,249,000.
5. Electric runabouts were first built in 1902. Fabrication
was ceased in
1912. A total of 1,841 such runabouts were built.
6. 1904 saw the first gas powered Studebakers.
7. Various corporate transactions, mergers, and
acquisitions occurred
between 1908 and 1910, most notably involving the Everitt-Metzger-
Flanders
Company which had a net worth of nearly $3,700,000 when it was merged
into
the Studebaker Corp. in 1911.
8. The merged companies at that time had tangible assets
exceeding $15 M
and cash from the sale of stock in the amount 0f $8,325,000.
9. Automobile sales in 1911 were 22,555
10. " " " 1913 " 35,410
11. " " " 1914 " 35, 460, but 2,000 fewer
employees were
utilized, thus dramatically increasing profit.
12. Net profit between 1911 and 1914 was $10,181,266
13. During the initial stages of WW I (prior to US
involvement)
Studebaker was a major supplier for the British armed forces and from
those
war contracts with Britain generated a profit of $4,200,000, at a rate of
22.7%. But when the US became involved, the company sacrificed profit
for
patriotism and realized a profit of only $900,000 from its government
contracts, at a rate of 5%--and that did not even account for
depreciation
and debt service. During the year 1916, nearly 66,000 vehicles had been
produced but by 1918, only 23,00 cars came out of the plants.
14. Post - war retooling was extensive and Studebaker was
alone in the
industry with new designs. Profits were enormous and by the end of 1919,
stock was selling at $140.00 PER SHARE.
15. By 1920, a new plant at South Bend had been completed
and had a
production capacity of 200 cars per day. By 1923, 145,000 cars were
produced, at a rate of 635 per day. Net profits between 1919 and 1923
were
$65,972.000. Corporate assets at the end of 1923 were $122,425,000.
Just thought that the efficiency and profitability of the
corporation was
an interesting contrast with what ultimately occurred. It was my
understanding that, in the end, one of the reasons for the failure of
Studebaker was the company's failure to support its dealers--in
contrast
to the early distribution and dealership mechanism that provided such a
strong support system in the early years.
============================================
but the 53/54 Commander prototype was for sale at
Auburn 1n 1996. It needed a lot of work but was all there. It didn't make
reserve but I heard it sold to someone in California for $20K+. At least
I got
to touch it.(G) Several stories about the history of the car has been
tossed
around on the NG. I believe JP or someone said that it hung around SB for
a long
time even on a used car lot at one time. Another story was the daughter
of a
Stude executive drove it while attending Indiana University. when at the
Auburn
sale, it came from Illinois where it had been since 1990. I don't know
the
original color but it was red when I saw it. The business about 53/54 was
Studebaker hadn't decided whether to go into production so upgraded it
with 54
trim as they were still testing the car. The only true fact is that I saw
it in
96. The rest I have heard from different folks.
Snurdly
Jan 30 2004
it was the factory prototype
convertible. one more thing, it had a propeller just below the hood
ornament.
That sure added some class to it. Actually, the car looked pretty sad.
A collector by the name of Lee Thomas in Denver was a former owner of my
53.
He told me that he had the Prototype convertible car for a while. He had
some medical problems and started selling cars from his collection, among
them my car and the Prototype. He told me he sold it to a fellow in
California, he said the name, but I don't remember it. Lee's health
problems have improved significantly and now he is regretting selling,
but
as he put it, they are all just hunks of metal in the end. He has
another
53 or 54 now and is debaitng whether to fix it up further or look for
another one.
Pat
I remember hearing somewhere that the car is now
owned by Tom Null of North Hollywood, CA.
Maybe, that's the guy you're talking about.
Another story I've heard is that the car was sold at
Auburn Spring MotorFair, May 15, 16 & 17 - 1998
(see below)
1953 STUDEBAKER COMMANDER CONVERTIBLE
SOLD: 19600 CONDITION: 3
PROTOTYPE, RESTORED, HAS BEEN GARAGED IN OUR HOME IN ILLINOIS SINCE 1990.
DRIVEN A LIMITED AMOUNT. ONLY 24,607 ACTUAL MILES ON THE SPEEDOMETER.
PROTOTYPE--HAND BUILT IN ENGINEERING DEPT. ONLY CONVERTIBLE IN EXISTENCE.
COST $80,000 TO BUILD IN 1953
ENGINE - V-8
EXT COLOR - RED
EXT COLOR2 - BLACK
Michael Bostedt
R2 Champ pickup
Packard Hawk with white leather and red steering wheel
The factory 54 convert
57 Supercharged Police car
Yet another Egbert Avanti <g>
1950 Desert car or truck (Saudi)
1964 limo ( Israeli )
How about the 1963 prototype van, complete with the Westinghouse logos on
the sides? Or the one-off 1942 Champion station wagon that ended up
serving
the South Bend area Red Cross in WWII? Just maybe a 1958 or 1959 Packard
truck in Argentina, and any of the three Frua 1961 styling studies that
may
still be in Italy.....
Or what about the prototype Weasel with the Commander six? Apparently
one was built, and deemed unsatisfactory. I think the combination of
the added power, and the added weight made for too much stress on the
driveline and suspension for their liking.
How 'bout a '53 with the Borg-Warner mechanical power steering <g>?
-Dick-
Well, they did reportedly make one (Yes, ONE, as in UNO) 1951
Commander 3-passenger business coupe (Q1 Body & Trim Code).
Also, the very last Hawk made is accounted for, and I believe it was
for sale in Turning Wheels maybe ten years ago. White with red
interior. Kind of a low-option car, if I remember correctly, maybe a
three-speed (but not sure). BP
Wasn't that Hawk written up in Turning Wheels sometime in the late 70's?
If I remember right the guy was in the dealership ordering the car when
word
came on the radio that President Kennedy had been shot (or am I mixing up
two
stories). As I recall it was a pretty basic car, but with Twin Traction
and
a couple of odd things that got it pushed to the back of the line causing
it
to be the last built.
Just last Sunday I saw one car that knocked two off your list! Our
Ohio Region SDC visited the Frederick Crawford Auto-Aviation Museum in
Cleveland and the last Studebaker-built Avanti, serial 5643, white R3
with Powershift and less than 10K miles, black interior, just
drop-dead gorgeous and the guide let my friend Joe and I behind the
ropes to peer inside! It was bought in Youngstown, OH in the '70's by
a former Cleveland Stude, then AMC dealer, Joe Erdellac, who
subsequently donated it to the museum. He's quite up in years now but
was an invited guest to one of our meetings two summers ago and was a
delightful guy and seemed to really enjoy himself.
==========================================================
2 bolt valve valve covers-
This is an interesting question because it brings up another one.
According to the parts book, the change was made at 1960 259 engine
#V466487. That would be the first engine to use 2-bolt valve covers.
Engine #V466486 would have had 4-bolt covers.
Now, V454701 was the first 1960 259 V-8 engine, so the change was made
after fewer than 12,000 1960 259 V-8 engines had been produced; i.e.,
fairly early in the 1960 model run.
That leaves the question of 1960 289 engines in Hawks up in the air,
because there is no reference to a change having been made during the
run of 1960 289 engines for Hawks...or, later, the special-order
police 289 that was available in 1960 Larks (don't get too excited
about that; I only understand that the 289 was available LATE in the
1960 run for Larks and then only for police or fleet special orders. I
don't claim to have ever seen one.)
Anyway, it is well documented that 1960 Hawk production did not begin
until well after Lark production, possibly not until calendar year
1960, as a matter of fact. With the onslaught of the "Big-Three"
compacts for 1960, Harold Churchill wanted to be sure the dealers had
plenty of 1960 Larks on introduction day...and Larks were still
selling well as the 1960 model year began.
Fred Fox theorized years ago, and I agree, that 1960 Hawk production
was held up so as many 1960 Larks as possible could be built. From all
that, it would be easy to hypothesize that 1960 289 engine production
was also delayed, so PROBABLY all 1960 289 engines had the "later"
2-bolt rocker arm covers.
The new question then becomes: Does anyone have a documented 1960 289
engine that WAS built with 4-bolt rocker arm covers? My guess is
probably not, but "never say never" in Studebaker Land. BP
-------------------------------------
Studillac
"I found this email address on your Studebaker website. I am trying to
find
out more information about a Studillac owned in 1955 by William Woodward
Jr., owner of the racehorse Nashua. He had it up in Saratoga that August
and it was so well liked by his friend, Ian Fleming, that Fleming
included
it in a chapter of his next James Bond book, "Diamonds are Forever,"
published in 1956. Do you know anything about this? I hoped something
was
written about the car at that time, a magazine article, a newspaper
story,
anything!!! I'm writing a book about the Belair Stud which was located
in
Maryland, the racing stable owned by the Woodwards.
If you can help, I sure would appreciate it."
If you can help her, contact Shirley Baltz sbdocent@bellatlantic.net
----
Studillac: a Studebaker powered by a Cadillac engine; article in Bond
No. 36. Cadillac aficionado, Erik Calvino who lives in
Tokyo, Japan, sent this quote from the James Bond website: The car
appears to be a black Studebaker convertible. When
Felix talks up the car's performance Bond thinks he's spouting nonsense,
until Felix stomps the fuel pedal and reveals to
Bond the car's hidden abilities. Leiter's car is under the hood.
Cadillacs in the 1950s were real performance cars. When the
horsepower of the Caddy engine was put into the aerodynamic,
lightweight, Loewy designed Studebaker body it yielded a
potent, high velocity, weapon! Special rear axle, brakes and
transmission had to be added to handle the extra power. This
car is not the product of Fleming's fertile imagination. Such a car was
actually produced by a specialty shop in New York. It was
dubbed with the singularly un-mellifluous sobriquet, "Studillac".
Here's the info on Bill Frick the guy that built the Studillac Looks
like he did the 53-54 Starliner with the 331cu.in Caddy :
Frick, Bill: He was associated with Bill Frick Motors, located at 1000
Sunrise Highway, Rockville Center, Long Island, NY. Frick
was born Berlin at the end of WW1 but moved to the USA before he was 18.
His first engine-swap was to put a 1924 Dodge
4-cylinder engine in a Model A Ford. His job consisted in
performance-tuning automobile engines. He built a V8-60 midget racer
in the winter of 1946 and won races with it. In 1949 Phil Walters [aka
"Ted Tappett"] was his driver. American rally driver, Tom
Cole, introduced Briggs Cunningham to Frick and Walters; they built for
him a 140 mph Fordillac, with a Cadillac engine, brakes
and a Borg-Warner Lincoln transmission. Cunningham bought over
Frick-Tappett Motors after the 1950 Le Mans race in which
two stock Cadillacs and a Cadillac-engined barquette nicknamed "Le
Monstre" [the "Monster"] did rather well. In the Fifties
Frick built some sports cars that used Cadillac motors (he had used also
Ford, Allard and Studebaker engines earlier). He built
about 100 "Fordillacs" and, in 1953 and 1954, the "Studillac" from the
1953 Studebaker Starlight coupe [see CL 4/54]. What Frick
wanted most was to build an "exotic", Ferrari-like sports car; one of
his three Vignale-bodied "Bill Frick Special" coupes is
photographed in "Alpha Auto", a French-language magazine collection of
the Seventies; these cars were powered by a 331.1 ci
Cadillac V8, developing 250HP at 4600 rpm. The cars used the Hydra-Matic
transmission; wheel base was 110". The estimated
value of a Frick special in 1989 was $10,000-15,000.
Frick-Tappett Motors: the team of Phil Walters (pseudonym "Ted Tappett")
and his mechanic, Bill Frick; good reading: SIA80,
pp.12-21,60; excellent story in SIA143 pp24-31.
---------------
Yes, Robert W. Bee is the man who owns one. He can be reached at 14368
Chapel Lane Leesburg, VA. Bob is the "foremost expert" on this car.
-----------------------------------------------------
Bonneville
The first record set by a '53 Coupe was in 1954. Glen Overmyer's
Studillac
went 141 and set the D/Coupe record.
Check the Sept 2001 issue of Rod and Custom...an article on the Sanchez
'53
Coupe ("Hot Roddings First 200 MPH Grocery Getter").Went 210 (one way)
with
a 454 inch Chrysler Hemi in 1955. This was the first stock bodied
passenger
car to break 200 MPH. Set the C/coupe record. Later set records in
B/Competition and B/Coupe before the body was modified to run in A/Comp
(237
MPH) in 1960.
Also check pages 277-283 of John Bridges book "Studebaker's Finest".
Lists
94 Bonneville records held by '53-'54 Coupes.
"In 1974, either a 53 or 54 bodied Studebaker coupe held 68% of the
records
in classes it was eligible to enter"
"Over the entire history of the Bonneville Speed Trials, no other car
body
has accumulated as many records in production car classes as the 53-54
Studebaker coupe. (Not even close.)"
In 1961, there were 35 C/K Studes entered at Bonneville....27% or the 129
car field.
-------------
On this week in 1936 (Aug 10), Frederick Fish died at the age of 84. He
married J. M. Studebaker's daughter and joined Studebaker in 1891 as a
legal counsel and member of the Board of Directors. He "worked his way
up"
to Chairman of the Board of Studebaker.
--------
Fred Fish almost single-handedly drug Studebaker into the automobile
business. It is a complicated scenario, but without Fred Fish, it is
possible Studebaker Brothers Manufacturing Company would have simply
faded away with the demise of horse-drawn vehicles and early electric
cars. Granted, that is a gross oversimplification, but he was the main
force that got the company into the gasoline-powered motor vehicle
business as we know it today. BP
---------
//////Is it true that Studebaker of Canada was actually making a profit
on
//each car
up to the end ? this is what I heard from an ad on eBay.////
They were, in fact, making a small profit on the automotive division at
the very last. But the course had been set to divest themselves of auto
production so it really didn't make a difference.
---
It's also been said that Canadian Production was continued only to avoid
costly legal action from dealers who had contracts for supply of cars
that
they did not want to relinquish, preventing Studebaker from being in
breach
of contract.
It can be concluded then that no matter how well Hamilton performed past
January 1964, production was going to end as soon as the company could
cleanly arrange it.
-
