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Studebaker

Studebaker Corporation, or simply Studebaker, was an American wagon and automobile manufacturer from South Bend, Indiana. The company originally manufactured cars for the mining industry, founded in 1852 and incorporated in 1868 under the name Studebaker Brothers Manufacturing Company. When Studebaker entered the automobile business in 1902 with electric vehicles and in 1904 with gasoline vehicles, it partnered with other gasoline vehicle builders until 1911. In 1913 Studebaker introduced its first all-Studebaker gasoline automobile. Acquired in 1954 by Packard Motors Company of Detroit, Michigan, Studebaker was a division of Studebaker Packard Corporation from 1957 to 1962. In 1962 it returned to its previous name, Studebaker Corporation. Until 1966 Studebaker survived as an independent firm until 1967 when it merged with Worthington to become Studebaker-Worthington Corporation.

19th century wagon builder

Henry Studebaker was a farmer, blacksmith, and wagon builder who lived near Gettysburg, Pennsylvania. In 1860 he moved to Ashland, Ohio and taught his sons to build wagons. All of them developed in the business until the end of the century.

Clement and Henry Studebaker Jr. became blacksmiths and foundries in South Bend. They began with the construction of metal parts for transport wagons and later expanded to the manufacture of complete wagons. John made wheelbarrows in Placervill, California, and Peter made wagons in Saint Joseph. The first major expansion of his business came from the California Gold Rush in 1849.

As the Gold Rush came to an end, John returned to Indiana and bought out Henry's business. He joined his younger brother, Jacob, in 1852. Expansion continued with the migration west, followed by a major decline when he had to supply wagons to the Union army in the Civil War. At the end of the war, he reviews his strengths and sets the company's course.

They reorganized into the Studebaker Brothers Manufacturing Company in 1878, building under the motto “Always deliver more than you promised.” By this time the railway companies had become the major transporters in the east. His vision, then, was to provide a means of transportation to farmers and merchants for their goods. Peter's business became a branch of the operation.

During the height of the westward migration and the beginnings of the railroad cars, half of the cars were Studebakers. They built a quarter of them and made metal parts to sell to other Missouri builders for a quarter of a century.

Studebaker automobiles from 1897 to 1966

Studebaker experimented with electric vehicles since 1897, choosing the power of the electric motor over the gasoline one. While attempting to manufacture its own electric car from 1902 to 1912, the company entered into a distribution agreement with two gasoline vehicle manufacturers: Garford of Elyria, Ohio, and the Everett-Metzger-Flanders (E-M-F) Company of Detroit.

Under the agreement with Studebaker, Garford would receive complete chassis and powerplants from Ohio and be attached to bodies that Studebaker would build, which would be sold under the Studebaker-Garford brand at a special price. Garford would eventually build the engines that would use the cars that would bear the Studebaker name. However, Garford also built a limited number of cars under his own name, and by 1907 he attempted to increase production at the expense of Studebaker. Once Studebaker realized what his partner was up to, John Moehler Studebaker demanded an exclusivity clause, forcing Garford to meet established production quotas. This decision ended production in 1911, leaving Garford to continue alone, until it was purchased in 1913 by John North Willys.

Studebaker's deal with E-M-F had a different relationship, and John Studebaker hoped it would give Studebaker a quality product without Garford's entanglements.

Under the terms of the agreement, E-M-F would build vehicles for Studebaker who would sell them through its network of wagon dealers. Problems with E-M-F resulted in an unreliable car, to which the public responded with E-M-F's nickname "Every Morning Fix-it." The problem was worsened by internal disputes between E-M-F partners Mr. Everett, Mr. Flanders and Mr. Metzger. Eventually, two of the partners withdrew, leaving the problem to Mr. Metzger in charge of the entire operation. J.M. Studebaker, dissatisfied with the poor quality of E-M-F, gained control of the assets and plants in 1910. To remedy the damage done by E-M-F, Studebaker paid a group of mechanics to visit each of the dissatisfied owners and replace defective parts. in their vehicles. This cost the company a million dollars.

Studebaker began the construction of a car under its name at the E-M-F plant, but making sure they were well built, to guarantee its production and guarantee sales. In 1911 the company was reorganized under the Studebaker Corporation.

Aside from cars, Studebaker incorporated a line of trucks, which eventually replaced the horse-drawn wagons they started with in 1852. In 1926, Studebaker became the first automobile company in the United States to open an environmental control program. ; In 1937 the company planted 5,000 pine trees on land so that from the air it read "STUDEBAKER."

From 1920 to 1960, the South Bend company created landmark styling and engineering, including the classic 1929-1932 Studebaker President and the 1939 Studebaker Champion. During World War II, Studebaker produced the Studebaker US6 truck. great quality and the unmatched M29 Weasel cargo and personnel truck. After the end of hostilities, Studebaker returned to building automobiles for the average American's transportation needs.

However, the high cost of personnel (the company never had an official union and pressure on workers made them the highest paid in the industry), quality control expenses, and the sales war between Ford and General Motors in the early 1950s put pressure on Studebaker's income statements. Financial managers were stressed about short-term income rather than establishing a long-term strategy. There would be enough inertia to survive another 10 years, but the level of competition and price cutting from the Big Three portended a bad end.

The merger with Packard

Hoping to stem the tide of losses and to capitalize on its market position, Studebaker allowed the Packard Motor Car Company of Detroit to purchase it; The merged entity was called Studebaker-Packard Corporation. Studebaker's financial position was worse than Packard assumed and in 1956, already close to bankruptcy, the company was managed by the management team of the aircraft manufacturer Curtiss-Wright in order to straighten the path. At the urging of its president, Roy T. Hurley, the company became an American importer for Mercedes-Benz, Auto Union and DKW cars and many Studebaker dealers also sold these brands. In 1958 the Packard brand was discontinued, although the company carried the Studebaker-Packard name until 1962.

Due to the burden of tax credits for financial losses and the insistence of the company's banks and some members of the board of directors, Studebaker-Packard began a process of diversification of the automotive industry in the late 1950s. While good for the company's bottom line, this virtually guaranteed lower spending on its core product: its cars.

Cars produced after the diversification process began, including the ingeniously designed Lark (1959) and even the sporty Avanti (1963), were based on earlier chassis and engines. The Lark in particular was based on existing parts that were used in the center sections of the 1953 car bodies, but its intelligent design made it very popular in its first year, achieving sales of over 150,000 units, which produced a windfall. to the company of $28 million dollars.

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