STUDEBAKER

The Studebaker brothers of South Bend, Indiana built wagons for farmers, wagons for the U.S. Army, wagons for western pioneering, even the wagon pulled by the Budweiser Clydesdales. They also built horse drawn broughams, phaetons, runabouts, victorias and sulkies. It was natural that they would venture into horseless carriages as well.

From 1902 to 1911 Studebaker built electric vehicles. In 1904, they entered into partnership with Garford of Elyria, Ohio to produce the gasoline engine powered Studebaker-Garford automobile until 1911.

In 1908, Studebaker had made an agreement with the E-M-F company to market E-M-F cars through Studebaker wagon dealers. In 1910, they took over E-M-F’s production facilities in Detroit and Walkerville, Ontario, Canada. In 1911, incorporated as the Studebaker Corporation they now concentrated on producing Studebaker automobiles. The last of Studebaker’s wagon production came to an end in 1919. To replace wagons they started making trucks.

Business boomed until the Great Depression. In the 1930s a low cost car called the Rockne was introduced. Studebaker president Albert Erskine had made some bad business decisions that put the company in debt for six million dollars. In 1928, Studebaker had taken control of Pierce-Arrow for $5.7 million and invested a large amount of money to improve the Pierce-Arrow factory. It drove Studebaker into bankruptcy. The problems weren’t insurmountable but they were for Erskine and he committed suicide in 1933.

Reorganization with new financing was secured in the mid-1930s and with the introduction of the new Champion the company was back on solid ground. During WWII production shifted to trucks, cargo and personnel carriers for the military.

Following the war Studebaker was well prepared to re-enter the market with the introduction of Virgil Exner’s uniquely designed Starlight coupe. The post-war period proved a challenge for the smaller American auto manufacturers as General Motors, Ford and Chrysler engaged in a price war to increase their market shares. George Mason of Nash proposed that Studebaker, Nash, Hudson and Packard merge into American Motors. There was resistance to the idea and when Mason died the plan fell apart.

Studebaker had several problems, for one they had the highest paid labor force in the industry and for another they had some of the worst quality control. They were losing money and a merger with Packard took place in 1956 to form Studebaker-Packard Corporation. A management agreement was made with Curtiss-Wright and Studebaker also became the American importer for Mercedes-Benz automobiles which only hastened the demise of the Packard brand.

The introduction of the Lark in 1959 gave the company some hope and the Avanti in 1962 provided a bit of interest but a labor strike in 1962 pretty much drove in the last nail as the South Bend plant closed in December 1963. Production was shifted to their Hamilton, Ontario plant and continued until March of 1966.