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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.
Henry Studebaker was a farmer, blacksmith, and wagon-maker who lived near Gettysburg, Pennsylvania in the early 19th century. By 1860, he 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 Chinas 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 to support westward migration, but the next major decrease came from supplying wagons for the Union Army in the Civil War. After the war, they reviewed what they had accomplished and 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. So they set their sights on supplying farmers and others with the means to move themselves and their goods. 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 experimented with powered vehicles as early as 1897, choosing electric over gasoline engines. 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.
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 and at a premium price. Eventually, even the Garford built engines began to carry the Studebaker name. However, Garford also built a limited number of cars under its own name, and by 1907 attempted to increase production at the expense of Studebaker. Once the Studebakers discovered what was going on with their partner, 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 to try it alone until it was acquired by John North Willys in 1913.
Studebaker's marketing agreement with E-M-F was a different relationship, one that John Studebaker had hoped would give Studebaker a quality product without the entanglements found in the Garford relationship. Unfortunately, this was not to be the case.
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." Compounding the problems was the internal fighting between E-M-F's principal partners, Mr. Everett, Mr. Flanders and Mr. Metzger. Eventually, two-thirds of the trio left, leaving the bombastic Mr. Metzger to run the operation on his own. 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 the defective parts in their vehicles at a cost to the company of US$1 million.
Studebaker also began putting its name on new automobiles produced at the former E-M-F facilities, both as an assurance that the vehicles were well-built, and as its commitment to making automobile production and sales a success. In 1911, the company reorganized as the Studebaker Corporation.
In addition to cars, Studebaker added a truck line, which in time, replaced the horse drawn wagon business started in 1852. 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 and their need for transportation and mobility.
However, ballooning labor costs (the company had never had an official United Auto Workers (UAW) strike and Studebaker workers and retirees were among the highest paid in the industry), quality control issues, and the new car 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.
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 help get it back on its feet. 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 the 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 mainstay products, its 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.
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 to roll 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.
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.
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 company name still stand and have proven to be a popular topic on such satellite photography sites as Google Earth . 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.
In 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 was not 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 is similar in concept to the Chevrolet Avalanche, although it is not 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 is no official word on this matter.
In 2002, Studebaker Motor Co. of Texas was founded. Research by other Wikipedia writers has shown that Studebaker Motor Co. Inc. is 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 will locate its corporate headquarters in the San Antonio metropolitan area.
On the company website, Tom Raines is listed as president and chief executive officer of Studebaker Motor Co. and Ric Reed is listed as executive vice president.
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 and industrial products.
see also List of Studebaker vehicles
| Trivia sections are discouraged under Wikipedia guidelines. The article could be improved by integrating relevant items and removing inappropriate ones. |
Source: Wikipedia
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