South Bend Closing & Kennedy Assassination
Bob Palma
for the first time in a month. Probably so much the better, I am sure.
Good to see so many smiling faces in South Bend last weekend; it sure
was a great time, eh?
Geeze, I actually bought a Studebaker item from JP; Lee DeLaBarre
witnessed and can testify!
I saw Kevin Wolford's reference to the Kennedy Assassination in the
thread "An Apology," but couldn't find the original thread. Kevin's
hypothesis is correct and is one of four contributing factors to the
South Bend plant closing in December 1963.
There were actually four contributing factors, probably none more
important than another. Studebaker might have survived any two of
them, but the combination of all four nailed The South Bend coffin
shut by early December.
The Four Coffin Nails were, in no particular order:
1. Sherwood Egbert becoming too physically ill to run the company.
2. Studebaker's gross overproduction of 1963 models during the summer
of 1963, against no dealer orders, to keep the lines running even
though the 1963s were not selling.
3. John F. Kennedy's assassination.
4. The excellent new head-to-head competition offered by General
Motors in the form of the Chevrolet Chevelle/Malibu and the thoroughly
restyled and now conventionally-engineered Buick Special/Skylark,
Pontiac Tempest/LeMans, and Oldsmobile F-85/Cutlass.
To expand:
1. Sherwood Egbert was absolutely THE point man for keeping Studebaker
in the automobile business. He knew the corporation's diversification
program was paying the bills being incurred by the Automotive
Division, and he hoped that could continue until the Automotives could
again be profitable. Without Sherwood at the ship's helm, the
money-grubbing bean counters in the galley below could steer the ship
into profitable waters by jettisoning the automotive division. They
had been licking their chops to do just that when Sherwood arrived,
and now they had their chance. From a purely economic and business
standpoint, they were justified: The stock rose in price when the
announcement was made that automotive production was ending in South
Bend.
2. I personally walked the shipping lots with cousin George Krem
during the summer of 1963, marvelling at all the cars they were
building with a destination of simply "South Bend." We had walked
those lots for years during our South Bend explorations in 1960-1964
and had never SEEN so many cars waiting to go somewhere...when, in
fact, they had nowhere to go.
Ultimately, those cars had to go somewhere. So the Zone Reps offered
them to the dealers below wholesale, just to get them out of South
Bend. Of course, most of those cars were still in dealer inventories
when the 1964 Studebakers were introduced. People attracted to the
1964 Studebakers would come in as potential 1964 model customers...but
many of them were offered such a fantastic deal on a left-over 1963
that they bought a left-over. Hence, the 1964 Studebaker line did not
sell as well as Sherwood and company observers had hoped. It did
attract customers, it did generate showroom traffic, but the traffic
that bought, too often bought a left-over 1963 real cheap.
3. As many of you know, the country's commerce simply STOPPED when
John F. Kennedy was assassinated. I was a Senior in High School,
paying close attention to anything that related to Studebaker's well
being. Studebaker was hanging on 10-day Sales Reports by a thread, as
Kevin apparently observed in his NG thread. For the ten days following
Kennedy's assassination, there just weren't any sales to report,
period. The bottom fell out. For Studebaker, it was especially deadly.
4. No sane person can deny the competition of the GM products that
were heads-up against Studebaker for the 1964 model year. The
Chevelle/Special/Tempest/F-85 lines were doggone good cars;
attractive, well engineered with no goofy flex driveshafts with rear
transmissions, aluminum engines, half-a-V-8 4-cylinder engines, or
other such malarky. They were good looking and sized and priced right
against the attractive new 1964 Studebakers. Sadly, it was tough,
tough competition for Studebaker.
Who knows, in retrospect, how many of those four factors Studebaker
could have endured and thus survived longer in South Bend. We'll never
know, but we do know our Favorite Marque couldn't survive all four.
Cheers. Bob Palma.
Craig Parslow
"Bob Palma" <bobcar...@hotmail.com> wrote in message
news:b63367bc.03051...@posting.google.com...
>
> There were actually four contributing factors, probably none more
>
> Motors in the form of the Chevrolet Chevelle/Malibu and the thoroughly
> restyled and now conventionally-engineered Buick Special/Skylark,
> Pontiac Tempest/LeMans, and Oldsmobile F-85/Cutlass.
That is very true. FoMoCo also expanded their compact car range from one
(Falcon) to four by 1963. (Falcon, Comet, Fairlane, and briefly, Meteor).
While not as good as the GM 'A' body and 'X&Y' body compacts, they did sell
in sizable numbers; enough to affect the sales of Studebaker and American
Motors. The GM compacts were well built, and offered many popular options
that Studebaker would not, or could not offer such as cruise control, power
windows, tilt wheel, on the Lark types.
Craig.
Kevin Wolford
while ago.
Since I was only eight months old in Nov/Dec 1963. My guess at an
association didn't come from my memory, only a guess as to the way a company
would react when under the accountant's microscope (as Studebaker surely was
at that time).
Really the only business condition comparison to that period in my lifetime
was September 11, 2001. And let me tell you my business stopped for a month
because of that.
"Bob Palma" <bobcar...@hotmail.com> wrote in message
news:b63367bc.03051...@posting.google.com...
Bob Palma
> I remember posting that thread about the Kennedy Assassination. Quite a
> while ago.
>
> Since I was only eight months old in Nov/Dec 1963. My guess at an
> association didn't come from my memory, only a guess as to the way a company
> would react when under the accountant's microscope (as Studebaker surely was
> at that time).
>
> Really the only business condition comparison to that period in my lifetime
> was September 11, 2001. And let me tell you my business stopped for a month
> because of that.
Kevin:
Excellent analogy on your part: Kennedy Assassination impact on
business compared with "9/11" impact. People just don't spend a whole
lot of money on ANYTHING when they are glued to their television sets,
biting their nails, and even crying. Assuming you and your business
survived "9/11", you know exactly what Studebaker was up against late
in November 1963...but Studebaker's one foot was firmly in the grave
before Kennedy got killed, and his assassination sure helped the
corporate undertakers swing the other limb(s) into the coffin.
Cheers. Bob Palma.
Craig Parslow
> > I remember posting that thread about the Kennedy Assassination. Quite a
> > while ago.
> >
> > Since I was only eight months old in Nov/Dec 1963. My guess at an
> > association didn't come from my memory, only a guess as to the way a
company
> > would react when under the accountant's microscope (as Studebaker surely
was
> > at that time).
> >
> > Really the only business condition comparison to that period in my
lifetime
> > was September 11, 2001. And let me tell you my business stopped for a
month
> > because of that.
You are correct. I remember my dad coming from work at lunch time,
something he NEVER did, and told my mom and myself the sad news. Business
for him did not pick up for quite some time afterwards. Fast forward 38
years later, in my case with the 9/11 thing, we got our asses reamed out by
the 'big guy' at work to get all of our receivables in by the end of
September as our "sales were off" in an unsavory tone of voice. I just
simply replied, "So are the rest of the world's sales off, and I wonder
why!" He never said another word to us after that move.
Craig.
Bob
off gradually after 9/11, I mfg coil springs for many companys in the
Tulsa area, and a few out of state. It took six months before things
started to get back to half way normal. When the Iraq war started,
business dropped off again. It is just now starting to pick back up.
Bob Whiten
car junkie
http://community.webtv.net/zzbob/StudebakersandMore
BondoBill1
business due to our customer base, and the economy. When 911 did occur we lost
90% of our customer base as they were all based in the Twin Towers. For the
first 5 months there was no business and we got memos stating that all monies
that were scheduled for holiday gifts were to be diverted to memorial funds.
Since 911 and the economy where it is, the major corpartations are doing very
little feel good stuff. Our major broker/customer has been seeking other
ventures, even going after securing school and colleges for work.
Interestingly, the Iraq war did not generate as much work as the first Gulf War
did. Back then everyone wanted art associated with it on garments our other
items.
Bill
Craig Parslow
"--Shiva--" <no...@abuse.net> wrote in message
news:b9umhi$7d1$1...@63.78.119.205...
> 3 counties S of me, the unemployment rate was 24%...
> here its....OFFICIALLY listed at 6... but is probably closer to
> 10...to get a house here, you need 3 jobs...you have 2 and the
> wife one..
The prices of houses usually reflect the economy of the local area. If its
as bad there as you say, just wait a while. Prices should start to drop,
especially when forclosures by the banks start. Just over 20 years ago, the
economy took a sharp downturn, (remember 'Reaganomics'?) and house prices
took a significant nosedive here. Many did lose their homes, and others
voluntarily walked away, got three letters of credit reference when the
interest rate went down from 21% to 13% and bought another comparable house
for way, way less. But right now, where I am, the economy is still bouyant,
and its, as you say; two incomes are needed to pay a mortgage on a house
here at today's prices. I got into the housing market in the mid-eighties
while the prices were still near rock-bottom, so I didn't fare too badly,
but many I know who have just started out are what they call 'mortgage-poor'
Craig.
> got an email the other day said NYC was at 11% and climbing...
> Was in a car dealership today... in the repair dept...and it was
> empty pretty well...the salesmen arent making enough to make a
> house payment- there are NO takers on a new OR used car...
> --Shiva--
> nuk pu nuk
>
BondoBill1
>empty pretty well...the salesme
Weird, we took the Navigator in for its 25K service, thank God we got it with
36/36 Complemtary Service, the bill was over $1300. BUT, as we were getting the
keys the fellow who leased me the car walked into the service area, after a few
seconds of BS he said to us to expect a letter from FORD in the next 3-4 months
that they will be offering us an opportunity to return the gator early, and
forget over milage, and pick up a new one. He said they need to move
product.......I don't get it, other than the cars are not moving, but how do
you make money on a car that sat on the dealer floor from 9/00 to 3/01 and
leased at $7K below sticker and eat the last 4-5 months of a lease?
I want their accountant.
JETman
You need to read some of Ravi Bothra's stuff. But then again, it might
scare teh daylights out of you...
--
Regards,
JT (Residing in Austin, Texas)
Just Tooling Down The Internet Superhighway With my G4.......
Craig Parslow
"BondoBill1" <bondo...@aol.com> wrote in message
news:20030515205359...@mb-m01.aol.com...
> >Was in a car dealership today... in the repair dept...and it was
> >empty pretty well...the salesme
> product.......I don't get it, other than the cars are not moving, but how
do
> you make money on a car that sat on the dealer floor from 9/00 to 3/01 and
> leased at $7K below sticker and eat the last 4-5 months of a lease?
Hmmmm......A Ford 100th Anniversary gift to you? <g>
Craig
>
> I want their accountant.
Nate Nagel
> 4. No sane person can deny the competition of the GM products that
> were heads-up against Studebaker for the 1964 model year. The
> Chevelle/Special/Tempest/F-85 lines were doggone good cars;
> attractive, well engineered with no goofy flex driveshafts with rear
> transmissions, aluminum engines, half-a-V-8 4-cylinder engines, or
> other such malarky. They were good looking and sized and priced right
> against the attractive new 1964 Studebakers. Sadly, it was tough,
> tough competition for Studebaker.
This is very true. My dad bought a new '67 Cutlass (essentially the
same car as the F-85) and drove that car over 300K miles before the
frame finally succumbed to Pennsylvania road salt. At that time it
was in perfect working order with the exception that the carb needed
to be rebuilt. The Olds 330 was a strong engine! The big advantage
was a much more modern suspension design (both front and rear) than
Stude offered and also GM was finally offering disc brakes (although a
different, 4-pot design) so Stude no longer had exclusive bragging
rights. I loved that Cutlass... wish I'd been older when he decided
to junk it, I would have taken it to a frame shop and had it squared
away...
Sad thing is, the car that proved the stiffest competition to the Lark
was a mere shadow of itself 10 years later :( What with the
introduction of the "corporate" GM (read Ch*vy) engine and lack of
development of the underbits (which were pretty much unchanged with
the exception of the brakes until the death of the RWD platforms)
there wasn't a whole lot of excitement from GM in the 70s and 80s...
nate
Studegary
>as bad there as you say, just wait a while. Prices should start to drop,
Yesterday, I was talking to a guy that was placing an offer on the house that
just went up for sale on the street behind me. The owner just died and the
daughter/heir lives in CT. The house is a 30 year old 3 BR ranch on about 1/2
acre. He offered $329K and doesn't know if he will get it for that. This is
in Dutchess County/Mid-Hudson Valley, NY. Location is everything (like with
that '53 Starliner on eBay). Some places $329K would be cheap for a 3 BR
ranch, but I think that in many places you could buy 2 or 3 for that much.
Gary L.
Studebaker Drivers Club Director - Northeast Zone
35 year Studebaker Drivers Club, Inc. member
1964 Studebaker Commander sedan, V8, OD, A/C
2001 Chrysler PT Cruiser Limited Edition
2001 Acura 3.2 CL coupe
Studegary
>you make money on a car that sat on the dealer floor from 9/00 to 3/01 and
>leased at $7K below sticker and eat the last 4-5 months of a lease?
"Hold back" is supposed to pay for floor plan. Was the Nav. a 2000 or 2001?
If it was a 2000, the dealer probably had enough "back door money" from the
factory to cover the difference. I can remember in the Fall of 1999 selling
1999 Neons (a car with a small mark up) for $3000 off and making more than we
usually made due to "back door money." The new car business can be very
complex.
Loy
>ranch, but I think that in many places you could buy 2 or 3 for that much.
Some places in Texas you might even buy the whole damn ranch for $329K! Maybe
even a couple of ranches if we don't get some rain soon...
Loy Daniel
http://clubs.hemmings.com/hpsdc/
Studegary
>>ranch, but I think that in many places you could buy 2 or 3 for that much.
>
>Some places in Texas you might even buy the whole damn ranch for $329K!
This points up the different meanings of a word. I use ranch to indicate a
style of house (all on one floor, usually in a line, usually small) on a small
parcel of land/lot and you use ranch to indicate a whole business (usually with
several buildings) on a large parcel of land.
Loy
>style of house (all on one floor, usually in a line, usually small) on a
>small
>parcel of land/lot and you use ranch to indicate a whole business (usually
>with
>several buildings) on a large parcel of land.
Nahh, Gary...I knew you were talkin about a "ranch style" house...some people
just can't help being a wise-a$$. <g>
Loy Daniel
http://clubs.hemmings.com/hpsdc/
JETman
Rain is EVIL. It makes grass grow which you must then mow...
BondoBill1
2001, built in October 2000 and left the floor on the 29th of March of 2001.
Studegary
>just can't help being a wise-a$$.
I knew you knew what I was talking about. It just made me think of the
difference in perspective depending on where you live.
Jeff DeWitt
away ... in 1989?
Maybe he should take up weather forcasting.
Jeff DeWitt
JETman
predicted what would happen in the late 1990's/early 2000's and wouldn't
you know it, it seems to be happening.
BTW, he is one of the more respected economists around. In fact, he was
one of Perot's advisers in the early 1990's and still may be...
JT
StudeBob
Gary, I sit at my desk and look out at the house across the drive from
us. It's for sale again for the 3rd time in 6 years. It's a fairly new
Ranch style that's had an addition put on just a year ago (extra two-car
garage, "Mother-in-law" addition - in essence, it's a 5bdr - 3&1/2 bath). On
2.3 acres of property planted in walnuts - seller's asking $339K for the
place and has only had drive-by lookers for the past 3 or 4 months that it's
been on the market.
Tulare county is now the officialy poorest county in the whole UNITED
STATES! The incredible thing is that there's a housing boom going on here!
Folks from Los Angeles and San Fran are buying homes here about as fast as
they can be put up. The farming industry that was the lifeblood of this
valley for eons is quickly being pushed aside.
"Studegary" <stud...@aol.comjunkbloc> wrote in message
news:20030516142419...@mb-m18.aol.com...
JETman
All of them thar' "furriners" will be demanding hot 'n cold runnin'
water, sewers, palatial schools, street scrubbin' and a host of other
amenities that you have happily gone without choosing the "simpler" life.
Your taxes will zoom upward, neighborhood association nazis will
complain about every blade of grass that is outta place, and your
vehicle flock... Well, er, you might as well head fer th' hills!
I've seen it time 'n time again... You finally find solace, and soon,
the "newcomers" show up and promptly screw it up because "it ain't as
good" as where they came from.
Better keep the Transtar in top shape for the move...
JT
--