Why Studebaker Failed

by Richard M. Langworth on 15 February 2010

I have your book Stude­baker 1946-1966 orig­i­nally pub­lished as Stude­baker: The Post­war Years. As an employee of the old com­pany at the end in Hamil­ton, Ontario,  it brought back mem­o­ries of many old Stude­baker hands: styl­ists Bob Doehler and Bob Andrews were good friends about my age.

I am look­ing for­ward to the last chap­ter dis­cussing how Stude­baker went wrong, espe­cially since I also have the­o­ries. It would fun to com­pare notes. I am on a panel in Phoenix/Glendale next June and made a Pow­er­Point pre­sen­ta­tion to the Avanti Club in 2006. My grand finali was your a quote from your book: “For many years, Ray­mond Loewy Asso­ciates would be the only thing stand­ing between Stude­baker and dull mediocrity.”

P.S. Like you I  owned a 1962 Gran Tur­ismo Hawk, a sur­pris­ingly impres­sive car. I drove it back and forth to Hamil­ton when we were work­ing on the last 1966 pro­duc­tion Stude­bak­ers. I put a ’53 Star­liner deck­lid on it and ’54 Star­liner wheel cov­ers; I thought each addi­tion was an improve­ment. —B.M., via email

1962 Gran Tur­ismo Hawk: Brooks Stevens' ulti­mate facelift of the great Stude­baker hard­tops and coupes, it could be traced back to the 1953 Starliner.

Thanks for the kind words. My GT Hawk was one of the best cars I ever owned: fast yet easy on gas, styl­ish, fun to drive. It leaked oil and the famous “flex­i­ble frame” was a lit­tle creaky, but it was a sat­is­fy­ing car, if overly sus­cep­ti­ble to the dreaded tinworm.

At the end of my book is a list of what Stude­baker did wrong, beginin­ning with chair­man Paul Hoff­man accept­ing every union demand after World War II. James Nance, the last pres­i­dent of Packard, who pur­chased Stude­baker in 1954, told me: “The trou­ble with Stude­baker was that they wouldn’t take a strike. Every­body else took strikes after the war and rea­son­able com­pro­mises were reached on wages and ben­e­fits. Stude­baker didn’t, and they never caught up.”

What Nance and Packard didn’t know when they bought Studebaker—but learned to their hor­ror when Packard’s accoun­tants finally got into the books—was that Studebaker’s break-even point by the mid-Fifties was 50,000 or more cars higher than their vol­ume in their best year on record. A Stude­baker designer told me he once priced the 1953 Star­liner using Gen­eral Motors costings—and found that GM could have sold the iden­ti­cal car for $300 less (which was a lot more then than it is now).

Stude­baker proved the alba­tross that dragged Packard down with it, mak­ing it impos­si­ble for Nance to find the finances to bankroll the highly com­pet­i­tive all-new 1957 line that might have allowed Studebaker-Packard to go on longer than it did.

1953 Stude­baker Star­liner: Designed mainly by Bob Bourke, it was prob­a­bly the sin­gle most out­stand­ing Amer­i­can auto design of the Fifties, a trib­ute to Ray­mond Loewy's vision and eye for tal­ent. (raymondloewy.org)

And yes, Ray­mond Loewy, for  all his pos­ing as the actual  cre­ator of styling tri­umphs like the 1953 Star­liner and 1963 Avanti, was the key to the cars being as disct­inc­tive as they were. He had an eye for tal­ent and hired and directed fine design­ers, such as Bob Bourke (Star­liner) and Bob Andrews, John Epstein and Tom Kel­logg (Avanti).

Studebaker’s sales and mar­ket­ing peo­ple blunted those good designs by inept plan­ning and pro­mo­tion. In 1953, for exam­ple, they built a sur­feit of sedan mod­els, find­ing to their shock that peo­ple mainly wanted the beau­ti­ful Star­liner hard­tops and Starlight coupes. Their pro­duc­tion mix was the exact oppo­site of what the pub­lic desired.

1964 Lark Wag­o­naire: Brooks Stevens had the clever idea for a slid­ing rear roof, enabling bulky items to be hauled eas­ily. (autoweek.com)

But Studebaker’s styling was con­sis­tently good. Try­ing to save the rump com­pany in the Six­ties, Pres­i­dent Sher­wood Egbert hired Brooks Stevens, who deftly facelifted the Lark and Hawk, and came up with novel ideas like the sliding-roof Wag­o­naire sta­tion wagon—but these were all reskins of the 1950s mod­els. Stevens and Loewy then offered  excit­ing ideas for all-new designs for 1966 and beyond, but by then it was too late. Stude­baker shut down its main fac­tory in South Bend, Indi­ana, in 1964, and the Hamil­ton Ontario plant closed after build­ing the last 1965-66 mod­els. But no—Studebaker didn’t have to fail.

Ray­mond Loewy, Sher­wood Egbert and the 1963 Stude­baker Avanti: basis for Loewy's new-generation Stude­baker pro­pos­als for 1964 and beyond.


{ 1 comment… read it below or add one }

David August 1, 2011 at 21:05

I enjoyed reading this article about Studebaker’s fall. My brother owned a 1962 Lark, for which he crisscrossed the country in, I had great times riding to the lake and beach here in South Florida. My mom drove a 1957 Hawk, sho loved the car. It tears at my soul to view ghostly pictures of the old plant in South Bend. My Aunt’s Jenny and Martha lied in Michagan City, Ind and we used to drive to South Bend to look at the plant. I remeber my Uncle Hershal saying “Us folks in Florida pay more for a car than those union workers do, but we don’t earn their wages.” After reading the demise of how UAW played a roll, it saddens me even more. I honestly believe had Studebaker survived they would have been years ahead of the big 3 in building compact cars. Thank you for such a well written story of a great American car builder.

Leave a Comment

Previous post:

Next post: