Has anyone heard about this?

[Shawn]

I was talking to a guy today who has a fair collection of Studes, packards, willys, hudsons and such. We got talking about the relationship between Mercedes and Studebaker and he was telling me that things have started coming out in recent years about Studebakers history such as Packard actually bought Studebaker instead of it being a merger and it had been an unadvised buy by people who knew packard. He also told me that no one knew where the money for the Lark came from and it has started coming out that Mercedes actually put up the cash for the Lark and was pretty much in control of that whole thing. One thing he mentioned, I have heard about on here somewhere that Porsche was working on something and there was a car that was pretty much completely built by Porsche for studebaker.

So how many of you know anything about this?

Former owner/owner with Dad:
58 Packard Golden Hawk
62 Hawk
62 Lark
63 Lark
64 Lark
63 Champ
Currently I own:
84 Mercedes 380SL
92 Range Rover (for sale)
99 BMW 323I
and helping a 16 year old rebuild an 86 Saab 900

Lakeland, FL

[studegary]

From my memory and opinion;

Yes, Packard acquired Studebaker, sort of like M-B acquired Chrysler.

The M-B sales agreement helped to bring money into Studebaker, but I do not believe that M-B had anything to do with the Lark. M-B's sales tie-in with Studebaker started in 1958 when the Lark came out as a 1959 model. If you had talked with Harold Churchill about the Lark, as I did, you get the impression (I believe the correct impression) that the Lark was really his baby and he thought of it as Studebaker's saviour for that time. Curtis-Wright money helped to finance the '57-'58 sedan/wagon models.

Yes, Studebaker and Porsche had worked together. There is a new Lark with a Porsche rear engine that I almost bought when it was discovered in a warehouse in NJ. This car was not directly built by Studebaker, but by (Curtis-Wright - ?). That car now is in the custody of the SNM. Studebaker did work directly with Porsche on a four door sedan.


Gary L.
Wappinger, NY

SDC member since 1968
Studebaker enthusiast much longer

[studegary]

From my memory and opinion;

Yes, Packard acquired Studebaker, sort of like M-B acquired Chrysler.

The M-B sales agreement helped to bring money into Studebaker, but I do not believe that M-B had anything to do with the Lark. M-B's sales tie-in with Studebaker started in 1958 when the Lark came out as a 1959 model. If you had talked with Harold Churchill about the Lark, as I did, you get the impression (I believe the correct impression) that the Lark was really his baby and he thought of it as Studebaker's saviour for that time. Curtis-Wright money helped to finance the '57-'58 sedan/wagon models.

Yes, Studebaker and Porsche had worked together. There is a new Lark with a Porsche rear engine that I almost bought when it was discovered in a warehouse in NJ. This car was not directly built by Studebaker, but by (Curtis-Wright - ?). That car now is in the custody of the SNM. Studebaker did work directly with Porsche on a four door sedan.


Gary L.
Wappinger, NY

SDC member since 1968
Studebaker enthusiast much longer

[Dwain G.]

During the 'Old Timers' History Seminar at the 1997 South Bend Meet Eli Spicer (of Freeman-Spicer) made the statement that there wasn't any merger, "Packard bought Studebaker, not the other way around".
I think there were some audible gasps in the audience, and after the meeting a few us discussed (and dismissed) what he had said.
Richard Langworth also says that in the "Packardbaker" article he did for Collectible Automobile in 1989.


Dwain G.

[Dwain G.]

During the 'Old Timers' History Seminar at the 1997 South Bend Meet Eli Spicer (of Freeman-Spicer) made the statement that there wasn't any merger, "Packard bought Studebaker, not the other way around".
I think there were some audible gasps in the audience, and after the meeting a few us discussed (and dismissed) what he had said.
Richard Langworth also says that in the "Packardbaker" article he did for Collectible Automobile in 1989.


Dwain G.

[bondobilly]

What I remember of the story is that Porsche did develop a small four cycle engine with some "revolutionary" suspension. IFIRC Mickey Cohen the infamous lawyer did some dirty tricks and the Board of Studebaker did not think that the US was ready for an almost "sub-compact car". Almost at the same VW was also being presented to the SP family.

While most will not own up to it, it was timing. WWII was less than 10 years in the past and there was a deep resentment towards German products.

while I do not beieve in what if's, Idoubt any merge or import of off shore cars wuld make any important contriution to the cash flow
that would have saved the parent company

[bondobilly]

What I remember of the story is that Porsche did develop a small four cycle engine with some "revolutionary" suspension. IFIRC Mickey Cohen the infamous lawyer did some dirty tricks and the Board of Studebaker did not think that the US was ready for an almost "sub-compact car". Almost at the same VW was also being presented to the SP family.

While most will not own up to it, it was timing. WWII was less than 10 years in the past and there was a deep resentment towards German products.

while I do not beieve in what if's, Idoubt any merge or import of off shore cars wuld make any important contriution to the cash flow
that would have saved the parent company

[556063]

The 1954 Studebaker-Packard merger was a shotgun wedding arranged by investment bankers as a solution for two companies that both had very serious problems. Packard had lost it's independent supplier of bodies due to that body supplier being acquired by by Chrysler. Packard was notified in 1953 that it would not be supplied with bodies after 1956. Packard was making money, but not enough to build and tool a body plant of it's own. Studebaker was hemmoraging money, but had the capability to build bodies. The marriage looked good on paper, but turned out badly. Studebaker ended up surviving the merger better than Packard because of it's volume and production capabilities.

The "bail-out" package by Curtis-Wright and the Eisenhower Administration in 1956-7 saw Studebaker receive $35 Million in exchange for giving control of it's defense plants and assets to Curtis-Wright. Curtis-Wright owned the rights to distribute Mercedes-Benz as a result of it's postwar dealings with Daimler-Benz. Daimler-Benz also added $10 Million to the Studebaker bail-out package, but Studebaker was obligated to build the Mercedes-Benz distribution structure in return for that money. (see "Studebaker - Less Than They Promised" by Beatty, Furlong & Pennington, page 35).

The 1998 Daimler-Benz takeover of Chrysler was a friendly takeover, in which the Board of Directors and CEO Bob Eaton of the former Chrysler Corporation willingly surrendered complete control of Chrysler and it's $10 Billion cash cushion to Daimler. Disasterous Daimler control saw Chrysler market share plummet from 17-18% in 1998 to 10-12% in 2007. Disconnected management and a resulting product development drought eventually forced the 2007 sale of the remains of Chrysler to Cerberus Capital Management, creating the first privately held (no public stockholders or stock exchange listing) member of the "Big Three" since Ford Motor Company went public shortly after World War II.

Kevin Wolford
Plymouth, IN

55 Champion
60 Lark VI Conv.
63 Avanti R1

[556063]

The 1954 Studebaker-Packard merger was a shotgun wedding arranged by investment bankers as a solution for two companies that both had very serious problems. Packard had lost it's independent supplier of bodies due to that body supplier being acquired by by Chrysler. Packard was notified in 1953 that it would not be supplied with bodies after 1956. Packard was making money, but not enough to build and tool a body plant of it's own. Studebaker was hemmoraging money, but had the capability to build bodies. The marriage looked good on paper, but turned out badly. Studebaker ended up surviving the merger better than Packard because of it's volume and production capabilities.

The "bail-out" package by Curtis-Wright and the Eisenhower Administration in 1956-7 saw Studebaker receive $35 Million in exchange for giving control of it's defense plants and assets to Curtis-Wright. Curtis-Wright owned the rights to distribute Mercedes-Benz as a result of it's postwar dealings with Daimler-Benz. Daimler-Benz also added $10 Million to the Studebaker bail-out package, but Studebaker was obligated to build the Mercedes-Benz distribution structure in return for that money. (see "Studebaker - Less Than They Promised" by Beatty, Furlong & Pennington, page 35).

The 1998 Daimler-Benz takeover of Chrysler was a friendly takeover, in which the Board of Directors and CEO Bob Eaton of the former Chrysler Corporation willingly surrendered complete control of Chrysler and it's $10 Billion cash cushion to Daimler. Disasterous Daimler control saw Chrysler market share plummet from 17-18% in 1998 to 10-12% in 2007. Disconnected management and a resulting product development drought eventually forced the 2007 sale of the remains of Chrysler to Cerberus Capital Management, creating the first privately held (no public stockholders or stock exchange listing) member of the "Big Three" since Ford Motor Company went public shortly after World War II.

Kevin Wolford
Plymouth, IN

55 Champion
60 Lark VI Conv.
63 Avanti R1

[StudeRich]

Wow! Chrysler is an Independent? I thought Daimler-Chrysler only sold certain portions or models, and kept the good stuff...Jeep and Dodge Trucks! Or some weird breakup like that.[:0]

StudeRich
Studebakers Northwest
Ferndale, WA

[StudeRich]

Wow! Chrysler is an Independent? I thought Daimler-Chrysler only sold certain portions or models, and kept the good stuff...Jeep and Dodge Trucks! Or some weird breakup like that.[:0]

StudeRich
Studebakers Northwest
Ferndale, WA

[52 Ragtop]

Yeah, And go buy or price a front suspension X member for a Pacifica! It's a MB part, $3200 and no used ones around!

Jim

[52 Ragtop]

Yeah, And go buy or price a front suspension X member for a Pacifica! It's a MB part, $3200 and no used ones around!

Jim

[Swifster]

Actually, MB still owns 20% of Chrysler.

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Tom - Valrico, FL

1964 Studebaker Daytona - 289 4V, 4-Speed (Cost To Date: $1755.45)

[Swifster]

Actually, MB still owns 20% of Chrysler.

---------------------------------------------------------------------------------------------------
Tom - Valrico, FL

1964 Studebaker Daytona - 289 4V, 4-Speed (Cost To Date: $1755.45)