Everything about Studebaker totally explained
Studebaker Corporation, or simply
Studebaker, was a
United States wagon and
automobile manufacturer based in
South Bend,
Indiana. Originally, the company was a producer of industrial
mining wagons, founded in
1852 and incorporated in
1868 under the name of the Studebaker Brothers Manufacturing Company. While Studebaker entered the automotive business in
1902 with
electric vehicles and
1904 with
gasoline vehicles, it partnered with other builders of
gasoline-powered vehicles until
1911. In
1913, Studebaker introduced the first gasoline-powered automobiles under its own “Studebaker”
brand name. Acquired in
1954 by
Packard Motors Company of
Detroit,
Michigan, Studebaker was a division of the
Studebaker Packard Corporation from
1957 to
1962. In
1962, it reverted to its previous name, the Studebaker Corporation. While the company left the automobile business in
1966, Studebaker survived as an independent closed
investment firm until
1967 when it merged with Worthington to become Studebaker-Worthington Corp. The company was a former component of the
Dow Jones Industrial Average.
History
19th century wagonmaker
Henry Studebaker was a
farmer,
blacksmith, and wagon-maker who lived near
Gettysburg, Pennsylvania in the early
19th century. His blacksmith trade was a family occupation passed down since the days of living in the famous blade-making town of
Solingen in
Germany. The Studebakers migrated to
America in 1736. By
1860, Henry had moved to
Ashland,
Ohio and taught his five sons to make wagons. They all went into that business as it grew westward with the country.
Clement and Henry Studebaker Jr. became blacksmiths and
foundrymen in South Bend. They first made metal parts for freight wagons and later expanded into the manufacture of complete wagons.
John made
wheelbarrows in
Placerville,
California, and Peter made wagons in
Saint Joseph. The site of John's business is California Historic Landmark #142. The first major expansion in their business came from their being in the right place to meet the needs of the
California Gold Rush in
1849.
When the
gold rush settled down, John returned to
Indiana and bought out Henry's share of the business. They brought in their youngest brother, Jacob, in
1852. Expansion continued westward
migration, but the next major decrease came from supplying wagons for the
Union Army in the
Civil War. After the
war, they set a direction for the company.
They reorganized into the Studebaker Brothers Manufacturing Company in
1878, built around the
motto of "Always give more than you promise." By this time the
railroad and
steamship companies had become the big freight movers in the east. They began supplying farmers and others with the means of transportation. Peter's business became a branch operation.
During the height of westward migration and
wagon train pioneering, half of the wagons were Studebakers. They made about a quarter of them, and manufactured the metal fittings to sell to other builders in
Missouri for another quarter century.
Studebaker Automobiles 1897-1966
Studebaker experimented with powered vehicles as early as
1897, choosing electric over
gasoline propulsion. While it attempted to manufacture its own
electric vehicles from
1902 to
1912, the company entered into a distribution agreement with two manufacturers of gasoline powered vehicles,
Garford of
Elyria, Ohio, and the
Everett-Metzger-Flanders (E-M-F) Company of
Detroit. Beginning in 1904, Studebaker began making gasoline engined cars.
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, 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 Moehler Studebaker enforced a primacy clause, forcing Garford back onto 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.
Studebaker's marketing agreement with E-M-F 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 wasn't to be.
Under the terms of the agreement, E-M-F would manufacture vehicles and the Studebakers would distribute them through their wagon dealers. Problems with E-M-F made the
cars unreliable, leading the public to say that E-M-F stood for
"Every Morning Fix-it."or 'every man's folly'. Compounding the problems was the internal fighting between E-M-F's principal partners, Everett, Flanders and Metzger. Eventually, two partners left, leaving the bombastic Metzger to run the operation. J.M. Studebaker, unhappy with E-M-F's poor quality, gained control of the assets and
plant facilities in
1910. To remedy the damage done by E-M-F, Studebaker paid
mechanics to visit each unsatisfied owner and replace defective
parts in their vehicles at a cost of
US$1 million.
Studebaker also began putting its name on new
automobiles produced at the former E-M-F facilities as an assurance that the vehicles were well-built. In
1911, the company reorganized as the Studebaker Corporation.
In addition to cars, Studebaker added a
truck line, which later replaced the
horse drawn wagons. 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."
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. 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.
The 1950 Studebaker Champion Starlight coupe introduced innovative styling features that influenced later cars, including the flat back "trunk" instead of the tapered look of the time, and a wrap-around rear window.
(External Link
) The new trunk design prompted a running joke that one couldn't tell if the car was coming or going.
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. 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. There was also a labor strike at the South Bend plant in 1962.
(External Link)
Merger with Packard
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. Studebaker's
cash position was far worse than it led Packard to believe and, in
1956, the nearly
bankrupt auto-maker brought in a management team from
aircraft maker
Curtiss-Wright to improve its finances. At the behest of C-W's president, Roy T. Hurley, the company became the American importer for
Mercedes-Benz,
Auto Union, and
DKW automobiles and many Studebaker
dealers sold those brands as well. In
1958, the Packard name was discontinued, although the company continued to bear the Studebaker-Packard name through
1962.
With an abundance of
tax credits in hand from years of financial losses, at the insistence of the company's
banks and some members of the
board of directors, Studebaker-Packard began diversifying away from automobiles in the late
1950s. While this was good for the corporate bottom line, it virtually guaranteed there would be little spending on Studebaker's automobiles.
The automobiles that came after the diversification process began, including the ingeniously-designed
compact Lark (
1959) and even the
Avanti sports car (
1963), 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 cars, but was a clever enough design to be quite popular in its first year, selling over 150,000 units and delivering an unexpected $28 million
profit to the automaker.
Hamilton, Ontario
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. The company was located in the former Otis-Fenson
military weapons factory off
Burlington Street on
Victoria Avenue North, which was built in
1941. The
Indiana-based Studebaker Corporation was looking for a Canadian site and settled on Hamilton because of its
steel industry. The company was known for making automotive innovations and building solid, distinctive cars.
1950 was its best year, but the descent was quick. By
1954, Studebaker was in the red and merging with
Packard, another troubled
car manufacturer. In
1963, the company moved its entire car operations to Hamilton. The Canadian car side had always been a money-maker and Studebaker was looking to curtail disastrous losses. That took the plant from a single to
second shift - 48 to 96 cars daily.
The last car off the line was a
turquoise Lark cruiser on
March 16,
1966. Studebaker officially announced the shutdown of its last car factory on
March 4. It was terrible news for the 700
workers who had formed a true family at the company, known for its employee parties and day trips. It was a huge blow to the city, too. Studebaker was Hamilton's 10th largest
employer at the time.
Non-Auto Businesses
Studebaker was involved in other areas of manufacture besides automobiles. The Franklin Appliance Company manufactured Home Appliances such as Refrigerators and such, until its sale to
White Consolidated Industries .
Studebaker also owned and manufactured
STP,
Gravely Tractor, Onan Electric
Generators, and
Clarke Floor Machine.
Exit from auto business
Nothing that was tried in the years following the Lark's debut proved enough to stop the financial bleeding. The company produced its last car in South Bend in December
1963, selling its
Avanti brand, tooling and plant space to Leo Newman and Nate Altman, who owned a Studebaker dealership in South Bend. Newman and Altman revived the car in 1965 under the brand name
Avanti II. They likewise purchased the rights and tooling for Studebaker's trucks (which were never again built after Studebaker fulfilled its remaining orders in early 1964), along with the company's vast stock of parts and accessories.
Automotive production was
consolidated at the company's last remaining production facility in
Hamilton, Ontario,
Canada, where Studebaker produced cars until March,
1966 under the leadership of
Gordon Grundy. Grundy tried very hard to turn a profit on his operation, and he succeeded to some degree.
However, the company's directors felt that the small profits that Grundy was producing were not enough to justify continued investment. Studebaker left the automobile business on March 16, 1966 after a turquoise and white Cruiser sedan rolled out the door.
After the final closure, Studebaker turned its focus to the company's myriad of
profitable, wholly owned
subsidiaries.
Many of Studebaker's dealers either closed, took on other automakers' product lines, or 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
Bendix Woods. The grove of 5,000
trees planted in
1937 that spelled out the Studebaker company name still stand and have proven to be a popular topic on such
satellite photography sites as
Google Earth (External Link). Today, the former
proving ground is owned by
Robert Bosch GmbH and it continues to be active some 80 years after it was built. Its General Products Division, which handled
defense contracts, was acquired by
Kaiser Industries and continues to this day as
AM General.
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. The Studebaker name disappeared from the American business scene in
1979, when
McGraw-Edison acquired Studebaker-Worthington. McGraw-Edison was itself purchased in
1985 by
Cooper Industries, which sold off its auto-parts divisions to
Federal-Mogul some years later.
Revival attempts
2003, the owners of the Studebaker XUV
trademark,
Avanti Motor Corp. (based in
Villa Rica, Georgia), announced a Studebaker-branded
SUV, the
XUV, for production that fall. A demonstration model appeared at the
Chicago Auto Show.
General Motors sued, claiming infringement of the
trade dress of its
Hummer model. In
2004, the parties announced a settlement after a redesign of the XUV concept, but owner Michael Kelly decided to
retire and announced an
auction of the Avanti company. It wasn't
publicly announced whether there were
bidders or a sale, and there were no further
public announcements made regarding any such sale. However, it appears that Avanti is producing vehicles again, as the company announced a 2006 model-year line. The company produces a limited run of only 150 vehicles per year.
The XUV was joined for 2006 by the
Studebaker XUT, a
pickup version that's similar in concept to the
Chevrolet Avalanche, although it isn't known if the XUT has the same type of "mid-gate" that allows the expansion of the cargo area into the
passenger cabin.
By March
2007, Avanti Motor Corp. had stopped using the Studebaker XUV name and had removed all references to the XUV from its
website. (See the link below.) Avanti may have halted use of the name to keep from having conflict with the Studebaker Motor Co., but there's no official word on this matter.
In
2002, Studebaker Motor Co. of
Texas was founded, Studebaker Motor Co. Inc. being listed with the
U.S. Department of Transportation's National Highway Traffic Safety Administration (USDOT/NHTSA). There have been articles about the company, including one that appeared on page 38 of the December 2006 issue of AMD/American
Motorcycle Dealer magazine. Another article appeared in the December 2006 issue of the motorcycle magazine
Iron Works, entitled "Stud Stude" (page 98).
Based on information from the company’s website and other sources, it appears that Studebaker Motor Co. is in the development stages with its vehicles. In a more recent company release, the company announced that it'll locate its
corporate headquarters in the
San Antonio metropolitan area.
On the company website, Tom Raines is listed as president and
Co-Chairman of Studebaker Motor Co. and Ric Reed is listed as
Chief Executive Officer and
Co-Chairman.
Corporate survivor
The remains of the auto maker still exist as Studebaker-Worthington Leasing, a subsidiary of State Bank of
Long Island (
amex: STB), which provides
leasing services for
manufacturers and
resellers of
business products and
industrial products.
Products
see also
List of Studebaker vehicles
Studebaker automobile models
Studebaker trucks
Studebaker Coupe Express (1937–1939)
Studebaker US6 (1941–45)
Studebaker M29 Weasel (1942–45)
Studebaker Transtar (1959–1963)
Studebaker Champ (1960–1964)
Studebaker M series (1940–1948)
M35 "Deuce and a half" 2.5 ton cargo truck (early 1950s)
Studebaker body styles
Studebaker Starlight (1947–55, 1958)
Starliner
Coupe Express
Affiliated automobile marques
E-M-F Independent auto manufacturer that marketed cars through Studebaker wagon dealers 1909-1912
Erskine (automobile) Brand of automobile produced by Studebaker
Packard 1954 merger partner of Studebaker
Pierce-Arrow Acquired by Studebaker in the late 1920s
Rockne Brand of automobile produced by Studebaker in the early 1930s
Mercedes-Benz Distributed through Studebaker dealers 1958-1966
Studebaker-Garford, Studebaker-bodied cars
Tincher An early independent builder of luxury cars financed by Studebaker investment
Studillac, an automobile combining a Studebaker body and a Cadillac engine made in the mid-1950s
References in popular culture
In Arthur Miller's 1949 play Death of a Salesman, the hero Willie Loman lauded the merits of his Studebaker car.
In the 2004 tribute album to Warren Zevon, his son Jordan Zevon performs a never-before published song about a Studebaker, entitled ... "Studebaker".
In "", Bruce Wayne rides in a Studebaker.
In the three-film "Back to the Future" series, the Statler brothers of Hill Valley started selling fine horses in 1885. By 1955, the descendants of the Statlers were selling Studebaker automobiles and light trucks. In 1985, the Statler family business was a Toyota dealership.
In 1979's The Muppet Movie, Fozzie and Kermit drive part-way to California in Fozzie's uncle's 1951 Studebaker Commander. Fozzie, driving through the forest, comments "Ah, a bear in his natural habitat -- a Studebaker!" One of the two cars used in the original filming is currently housed in the Studebaker National Museum in South Bend, Indiana.
The popular early 1960s TV show "Mr. Ed" was sponsored by Studebaker Corporation. In an early form of product placement, Studebakers were seen prominently throughout the show.
A long-running joke on the TV show Golden Girls is that Dorothy Zbornak once became pregnant in the back of a Studebaker.
One of Nathan Detroit's lines in the original Broadway musical Guys and Dolls refers to garage owner Joey Biltmore getting "stabbed by a Studebaker".
Frank Zappa's mock rock-opera "Billy the Mountain" (from Just Another Band from L.A.) features a superhero called Studebacher Hoch (pronounced "Studebaker Hawk")
In the 1990s Nickelodeon TV show "Doug", one of Doug's friends is named "Chalky Studebaker".
In the TV show "Happy Days", Mr. Cunningham (played by Tom Bosley) trades in his DeSoto for a 1962 Studebaker Lark during the 1982 season. The car appeared in the opening credits until the show's cancellation in 1984.
The company is also mentioned in Billy Joel's history themed song "We Didn't Start the Fire".
British art-rock band Roxy Music's 1972 debut single "Virginia Plain" contains the lyrics, "Where my Studebaker takes me / That's where I'll make my stand"
In Hunter S. Thompson's novel Fear & Loathing in Las Vegas, he notes that, in 1971, LSD is the "Studebaker of the drug market."
The elderly couple in the comic strip, "Pickles" drive what appears to be a 1950s-era Studebaker Commander.
In a 2006 episode of the SciFi Channel's tv show "The Lost Room," the character Detective Joe Miller drove a 1960s model Studebaker Champ pickup. The scene was very short.
In Wanda Nevada, a 1979 film starring Peter Fonda and Brooke Shields, the two leads drove around in a 1949 to 1952 model bullet-nosed Studebaker coupe (possibly a Champion or Commander).
In the video game "The Godfather," there appears to be a Studebaker President-type vehicle that the player can hijack. It is the fastest car in the game. There also appears to be a Studebaker truck that can be hijacked.
In an episode of "Eight Simple Rules for Dating My Teenage Daughter," the grandpa brings home a Studebaker for the young boy to fix up with him.
In the 1998 movie The Newton Boys, the Newton brothers are seen driving around in a 1920s Studebaker.
In the 1973 film American Graffiti John Milner asks a group of girls cruising in a Studebaker if anyone wants to ride with him. (He ends up with "Judy's sister" Carol (Mackenzie Phillips).Further Information
Get more info on 'Studebaker'.
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