Packard and Studebaker merger had high hopes

When the Packard and Studebaker car companies merged in October 1954, the “event” attracted a lot of news media attention. Could the new company make a dent in the sales and profits of “Big Three” – General Motors, Ford and Chrysler? 

TIME Magazine reported in 1954 that the new company, known as Studebaker-Packard Corp. “will have a full line of low-to high-priced cars for the competitive battle ahead. But Studebaker-Packard’s biggest asset is the opportunity to compete better by pooling the resources of the two old independents.”

 

“For its part, Packard will get the advantages of the slick styling that has made Studebaker a pacesetter in postwar auto trends…and the benefits of Studebaker’s strong dealer organization around the United States,” TIME said. 

“Packard, which has long had trouble getting dealers to take on its big cars in fringe markets, will start off by doubling up with Studebaker to sell Packards in 1,000 towns too small to support a full-time Packard agency. In turn, Studebaker will profit from Packard’s solid engineering and its strong financial position.” 

“As president of the new combine, in stepped James J. Nance, who pulled Packard out of the rut two years ago,” TIME said. “Coming to Packard from General Electric’s Hotpoint division (in 1952), Nance found a company suffering from old age.” 

“Packard’s plants were among the mustiest and least efficient in the industry; its sales organization was without drive or direction; its executives were aging. The company made money, but largely because of defense production and the happy fact that 1952 was still a seller’s market for automen.”

 

1939 Packard

“This fall, Packard will replace its ancient Detroit operation with two new plants as modern as any in the industry,” the TIME article concluded. 

Studebaker goes way back. Brothers Clement and Henry Studebaker were blacksmiths who started a horse-drawn wagon company in South Bend, Ind., in 1852. President Abraham Lincoln rode in Studebaker carriages. 

Studebaker Brothers Manufacturing Company started building and selling cars in 1902. In 1911, the second generation of Studebaker brothers – Clement Jr., John, Peter and Jacob – purchased the Everitt-Metzger-Flanders Co. of Detroit and formed the Studebaker Corp.

 

During 1913, Studebaker was the third largest producer of automobiles in America, after Ford and Willys-Overland. 

Brothers James and William Packard formed the Ohio Automobile Company and began producing cars in Warren, Ohio, in 1899. Henry Bourne Joy bought the business in 1902, renamed it as Packard Motor Car Company and moved operations to Detroit. 

From day one, Packard was a luxury car, priced at the top of that category. These sleek, big autos were favored by royalty and tycoons around the globe. The first car to drive a U.S. president to his inauguration was a Packard, chauffeuring Warren G. Harding in 1921. 

Automotive historian Pat Foster said in 1954 both companies felt pressure “to grab a partner quickly or perish.” (Earlier that year, Nash and Hudson had joined forces to form American Motors.) 

However, in the rush to the altar, Packard “relied on estimates of Studebaker’s numbers rather than a thorough examination of the company’s books that would have shown Studebaker to be in a weaker position than expected.” 

“It was a great deal for Studebaker because once Packard owned the company, it would have to cover Studebaker’s losses with Packard money,” Foster wrote.

  

Studebaker car collectors still rally behind the brand

Mention the word “Studebaker” to Robert Tate, an automotive historian and researcher based in Detroit, Mich., and he will direct you to the famous Studebaker “bullet nose” models of 1950-51. 

Some folks called these cars the “airplane Studeys.” The cars created a lot of conversation in the automotive world. Its “spinner nose,” centered between the headlights, resembled an airplane propeller.

 

Studebaker’s 1947 models introduced the innovative “Vista Dome,” wrap-around rear windows. Tate said: “Rear-seat passengers were treated to the equivalent of a Cinemascope-styled picture window.” 

Additionally, he said, the rear deck was “almost as lengthy as the hood, yielding yet another time-worn cliché: “Is it going or is it coming?”

 

Fred K. Fox, historian of the Studebaker Drivers Club, said that “people nicknamed the 1947-’49s ‘Coming-and-Going cars,’ because both ends looked similar.” 

As an aside, Fox said: “In 1736, a small family group with the surname Stutenbecker left Solingen, Germany, and sailed from Rotterdam, Holland, to Philadelphia. The English-speaking agent who filled out their papers Anglicized their surname to Studebaker.” 

In 1962, Studebaker “hitched its wagon,” so to speak, to a television show about a mischievous talking horse, “Mr. Ed.” 

Main human characters, Wilbur and Carol Post, portrayed by actors Alan Young and Connie Hines, owned a light blue 1962 Studebaker Lark compact car. Studebaker Corporation was a major sponsor of the popular fantasy/situation comedy. 

Also in 1962, the Studebaker Lark was selected as the “official pace car” for the Indianapolis 500. The driver was veteran racecar driver Sam Hanks, who won the Indy 500 in 1957.

 

Still, Studebaker couldn’t shake off a prolonged slump in sales. Eventually, the company exited the automobile business in 1966. 

Fox delivered a eulogy: “The story of Studebaker is about much more than just vehicles. It’s about the founders, engineers, designers, factory employees, dealership owners and the people who purchased the vehicles.” 

“Those Studebaker buyers, past and present, are the ones who’ve kept the flame alive,” Fox said. “Studebaker enthusiasts feel strongly that the vehicles they honor, and the company’s long history, are unsurpassed in the saga of wheeled transportation.”

 

The Studebaker National Museum in South Bend opened in October 2005. It’s a great place to learn all about Studebaker’s 1932-33 Rockne model. 

The car was named after Knute Rockne, who was the legendary head coach of University of Notre Dame football team from 1918-30. The car was sleek and very popular, but it was derailed by the Great Depression.

 

Coach Rockne had left coaching in 1931 to become Studebaker’s “manager of sales promotions.” His job was to “motivate and develop offensive-minded dealers and sales managers who would play the game in enemy territory.” 

After only seven days on the job with Studebaker, Rockne died in a tragic commercial airplane crash in a cattle pasture near Bazaar, Kan. Seven others aboard the plane also perished. 

On a more upbeat note, 1979’s “The Muppet Movie” featured Fozzie Bear’s 1951 “Bullet Nose Commander” that made a cross-country trip with Kermit the Frog.

 

After filming was completed, the Studebaker vehicle was banished to the CBS Studio Center’s backlot at Studio City, Calif. For several years, it sat in limbo until it was gifted to the museum.  

R.I.P.: Packards disappeared in 1958. Studebakers passed away in 1966.