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View Full Version : The Ghost of Albert R. Erskine Sr?



BobPalma
03-06-2008, 06:41 AM
:) One of The Studebaker Corporation's greatest Presidents was Albert R. Erskine Sr. His guiding the Corporation's growth during the 1920s was as dramatic as it was effective.

Unfortunately, he underestimated the would-be depth and length of The Great Depression, bringing the company to its financial knees by insisting on paying dividends to stockholders from cash reserves during years when the corporation's income did not justify lavish dividend payouts.

Three generations later, current Ford Motor Company Chief Executive Alan Mulally, ensconced in his ivory tower in Detroit, must have been perusing old Albert's playbook of late.

To wit: Mulally announced this week that Ford Motor Company will pay all hourly workers a lump-sum bonus of $1,000 for 2007, while bonuses for salaried workers will vary by grade and leadership level. This despite the fact that FoMoCo lost $2.7 Billion (with a "B") last year!

It's been said that those who ignore the lessons of history are doomed to repeat it. At least Erskine's misjudgements kept the price of Studebaker stock higher than it might have otherwise been! ;)[8D] BP

tomnoller
03-06-2008, 06:47 AM
Hide the pistol. D'OH!

Western Washington, USA

tomnoller
03-06-2008, 06:47 AM
Hide the pistol. D'OH!

Western Washington, USA

lstude
03-06-2008, 07:11 AM
Next will be receivership!

Do they still do receiverships? I haven't heard that term lately.

Leonard Shepherd
http://leonardshepherd.com/

http://i129.photobucket.com/albums/p235/lstude1/MeatSouthBendsm1.jpg

lstude
03-06-2008, 07:11 AM
Next will be receivership!

Do they still do receiverships? I haven't heard that term lately.

Leonard Shepherd
http://leonardshepherd.com/

http://i129.photobucket.com/albums/p235/lstude1/MeatSouthBendsm1.jpg

BobPalma
03-06-2008, 07:24 AM
quote:Originally posted by tomnoller

Hide the pistol. D'OH!

[xx(] Ouch! (I was hoping no one would mention that, Tom; that wasn't the parallel I intended to draw by any means! ;)) :D[}:)] BP

BobPalma
03-06-2008, 07:24 AM
quote:Originally posted by tomnoller

Hide the pistol. D'OH!

[xx(] Ouch! (I was hoping no one would mention that, Tom; that wasn't the parallel I intended to draw by any means! ;)) :D[}:)] BP

tomnoller
03-06-2008, 07:32 AM
I know, Bob, I just couldn't resist!

Western Washington, USA

tomnoller
03-06-2008, 07:32 AM
I know, Bob, I just couldn't resist!

Western Washington, USA

lstude
03-06-2008, 07:35 AM
In this day in time, Alan Mulally will not go bankrupt like Erskine did. Even if Ford goes down, Alan Mulally will be paid well or get a golden parachute!


They may be trying to stave off a strike like GM is having.

This from From Automotive news __

Robert Sherefkin

DETROIT -- General Motors plans a seventh plant shutdown next week as
the fallout from a UAW strike against American Axle & Manufacturing
Holdings Inc. moves into its second week.
In a recorded call, a GM spokesman said today that the automaker's
Toledo, Ohio, transmission plant expects to close Monday, March 10,
because of the strike called by the union. The Mishawaka, Ind.,
plant, which makes the Hummer H2, already was scheduled to shut down
today. It would be the sixth plant to be idled by the walkout.
GM closed its Pontiac Truck and Bus plant Thursday, Feb. 28, sending
2,500 workers home. On Friday, Feb. 29, GM said it would suspend work
at light-truck plants in Flint, Mich., and Fort Wayne, Ind., and a
plant in Oshawa, Ontario.
A fifth plant, in Moraine, Ohio, was closed


Leonard Shepherd
http://leonardshepherd.com/

http://i129.photobucket.com/albums/p235/lstude1/MeatSouthBendsm1.jpg

lstude
03-06-2008, 07:35 AM
In this day in time, Alan Mulally will not go bankrupt like Erskine did. Even if Ford goes down, Alan Mulally will be paid well or get a golden parachute!


They may be trying to stave off a strike like GM is having.

This from From Automotive news __

Robert Sherefkin

DETROIT -- General Motors plans a seventh plant shutdown next week as
the fallout from a UAW strike against American Axle & Manufacturing
Holdings Inc. moves into its second week.
In a recorded call, a GM spokesman said today that the automaker's
Toledo, Ohio, transmission plant expects to close Monday, March 10,
because of the strike called by the union. The Mishawaka, Ind.,
plant, which makes the Hummer H2, already was scheduled to shut down
today. It would be the sixth plant to be idled by the walkout.
GM closed its Pontiac Truck and Bus plant Thursday, Feb. 28, sending
2,500 workers home. On Friday, Feb. 29, GM said it would suspend work
at light-truck plants in Flint, Mich., and Fort Wayne, Ind., and a
plant in Oshawa, Ontario.
A fifth plant, in Moraine, Ohio, was closed


Leonard Shepherd
http://leonardshepherd.com/

http://i129.photobucket.com/albums/p235/lstude1/MeatSouthBendsm1.jpg

barnlark
03-06-2008, 07:50 AM
All I know is I don't even get a frozen turkey for a bonus once a year! Guess that's why my company's losses aren't in the "B's".

barnlark
03-06-2008, 07:50 AM
All I know is I don't even get a frozen turkey for a bonus once a year! Guess that's why my company's losses aren't in the "B's".

Mark57
03-06-2008, 09:47 AM
quote:Originally posted by BobPalma

:) One of The Studebaker Corporation's greatest Presidents was Albert R. Erskine Sr. His guiding the Corporation's growth during the 1920s was as dramatic as it was effective.

Unfortunately, he underestimated the would-be depth and length of The Great Depression, bringing the company to its financial knees by insisting on paying dividends to stockholders from cash reserves during years when the corporation's income did not justify lavish dividend payouts.

Three generations later, current Ford Motor Company Chief Executive Alan Mulally, ensconced in his ivory tower in Detroit, must have been perusing old Albert's playbook of late.

To wit: Mulally announced this week that Ford Motor Company will pay all hourly workers a lump-sum bonus of $1,000 for 2007, while bonuses for salaried workers will vary by grade and leadership level. This despite the fact that FoMoCo lost $2.7 Billion (with a "B") last year!

It's been said that those who ignore the lessons of history are doomed to repeat it. At least Erskine's misjudgements kept the price of Studebaker stock higher than it might have otherwise been! ;)[8D] BP




I wonder how Ford is doing with plant capacity? As I recall, Mr. Erskine was building Rockne's in Detroit while building "other" Studebaker's in South Bend with both plants operating at about 15% of capacity in the early '30's... don't think that kind of inefficiency helped the bottom line a whole lot either! [xx(]

<h5>Mark
'57 Transtar
3E-6/7-122 </h5>
http://i186.photobucket.com/albums/x153/MarkH57/MrGreenJeans1003b.jpg

Mark57
03-06-2008, 09:47 AM
quote:Originally posted by BobPalma

:) One of The Studebaker Corporation's greatest Presidents was Albert R. Erskine Sr. His guiding the Corporation's growth during the 1920s was as dramatic as it was effective.

Unfortunately, he underestimated the would-be depth and length of The Great Depression, bringing the company to its financial knees by insisting on paying dividends to stockholders from cash reserves during years when the corporation's income did not justify lavish dividend payouts.

Three generations later, current Ford Motor Company Chief Executive Alan Mulally, ensconced in his ivory tower in Detroit, must have been perusing old Albert's playbook of late.

To wit: Mulally announced this week that Ford Motor Company will pay all hourly workers a lump-sum bonus of $1,000 for 2007, while bonuses for salaried workers will vary by grade and leadership level. This despite the fact that FoMoCo lost $2.7 Billion (with a "B") last year!

It's been said that those who ignore the lessons of history are doomed to repeat it. At least Erskine's misjudgements kept the price of Studebaker stock higher than it might have otherwise been! ;)[8D] BP




I wonder how Ford is doing with plant capacity? As I recall, Mr. Erskine was building Rockne's in Detroit while building "other" Studebaker's in South Bend with both plants operating at about 15% of capacity in the early '30's... don't think that kind of inefficiency helped the bottom line a whole lot either! [xx(]

<h5>Mark
'57 Transtar
3E-6/7-122 </h5>
http://i186.photobucket.com/albums/x153/MarkH57/MrGreenJeans1003b.jpg

JBOYLE
03-06-2008, 10:31 AM
Wouldn't it be great if Ford did an "Avanti" and put a great looking body on one of their prosaic platforms?

It might sell better/be more affordable than some of their Shelby Mustangs....I can't believe the jacked-up price some dealers are asking...and apparently getting...for them.

(Remember the days when they'd offer a 2 door, 4 door sedan and hardtop, convertible and wagons of one model?
Today it's 4 door sedan only...and maybe a "crossover")
They even had more than gray as an interior color.

63 Avanti R1 2788
1914 Stutz Bearcat
(George Barris replica)

Washington State

JBOYLE
03-06-2008, 10:31 AM
Wouldn't it be great if Ford did an "Avanti" and put a great looking body on one of their prosaic platforms?

It might sell better/be more affordable than some of their Shelby Mustangs....I can't believe the jacked-up price some dealers are asking...and apparently getting...for them.

(Remember the days when they'd offer a 2 door, 4 door sedan and hardtop, convertible and wagons of one model?
Today it's 4 door sedan only...and maybe a "crossover")
They even had more than gray as an interior color.

63 Avanti R1 2788
1914 Stutz Bearcat
(George Barris replica)

Washington State

Avantidon
03-06-2008, 10:46 AM
Bob, your post is a great lesson in history that caused Erskine to take his own life but fell on deaf ears at Studebaker as they continued to do the same thing even though there was a desperate need for a MAJOR CASH INFUSION for capital Equipment and Plant EFFICIENCY IMPROVEMENTS. As we all know, history does repeat itself and the Studebaker Corporation is a great and classic example of that as is the FORMER Bethlehem Steel which made the exact same mistakes Studebaker did. Wondering out loud Wgat would have happened had he given that dividend payment to the employees instead of The Stockholders? Could it have changed the fate of the company? I guess we will never know. As to Ford's move, the results will be known in the future. At least they thought of the employee first and I am a Ford stockholder in it for the long run or short run.

See you in the future as I write about our past

Avantidon
03-06-2008, 10:46 AM
Bob, your post is a great lesson in history that caused Erskine to take his own life but fell on deaf ears at Studebaker as they continued to do the same thing even though there was a desperate need for a MAJOR CASH INFUSION for capital Equipment and Plant EFFICIENCY IMPROVEMENTS. As we all know, history does repeat itself and the Studebaker Corporation is a great and classic example of that as is the FORMER Bethlehem Steel which made the exact same mistakes Studebaker did. Wondering out loud Wgat would have happened had he given that dividend payment to the employees instead of The Stockholders? Could it have changed the fate of the company? I guess we will never know. As to Ford's move, the results will be known in the future. At least they thought of the employee first and I am a Ford stockholder in it for the long run or short run.

See you in the future as I write about our past

Guido
03-06-2008, 11:46 AM
quote:Originally posted by lstude
Do they still do receiverships? I haven't heard that term lately.
Yes they do, but typically it is involuntarily forced upon a business by creditors. A receiver is a person appointed by the bankruptcy court to manage the affairs of the bankrupt party and to conserve assets for the creditors.

http://thumb14.webshots.net/t/62/562/2/21/69/2353221690097493054hwathP_th.jpghttp://thumb14.webshots.net/t/60/460/3/91/1/2433391010097493054nAMBKh_th.jpghttp://thumb14.webshots.net/t/24/565/2/49/65/2603249650097493054XvpTUI_th.jpghttp://thumb14.webshots.net/t/64/564/6/89/77/2752689770097493054skXzAT_th.jpghttp://thumb14.webshots.net/t/22/22/0/2/68/2589002680097493054ftBuBw_th.jpghttp://thumb14.webshots.net/t/28/28/8/30/30/2075830300097493054aSSlFv_th.jpghttp://thumb14.webshots.net/t/24/565/5/22/8/2609522080097493054ZNRJeA_th.jpghttp://thumb14.webshots.net/t/69/169/4/66/56/2729466560097493054oBZsXT_th.jpg
Guido Salvage - "Where rust is beautiful"

Studebaker horse drawn doctor’s buggy; Studebaker horse drawn “Izzer” buggy; 1946 M-16 fire truck; 1948 M-16 grain truck; 1949 2R17A fire truck; 1950 2R5 pickup; 1952 2R17A grain truck; 1952 Packard 200 4 door; 1955 E-38 grain truck; 1957 3E-40 flatbed; 1961 6E-28 grain truck; 1962 7E-13D 4x4 rack truck; 1962 7E-7 Champ pickup; 1962 GT Hawk 4 speed; 1963 8E-28 flatbed; 1964 Avanti R2 4 speed; 1964 Cruiser and various other "treasures" (including a 1959 IH B-120 4 wheel drive, a 1970 Dodge W-200 Power Wagon and numerous Oliver and Cockshutt tractors).

See pictures here: http://community.webshots.com/user/GuidoSalvage

Hiding and preserving Studebakers in Richmond, Goochland & Louisa, Va.

Guido
03-06-2008, 11:46 AM
quote:Originally posted by lstude
Do they still do receiverships? I haven't heard that term lately.
Yes they do, but typically it is involuntarily forced upon a business by creditors. A receiver is a person appointed by the bankruptcy court to manage the affairs of the bankrupt party and to conserve assets for the creditors.

http://thumb14.webshots.net/t/62/562/2/21/69/2353221690097493054hwathP_th.jpghttp://thumb14.webshots.net/t/60/460/3/91/1/2433391010097493054nAMBKh_th.jpghttp://thumb14.webshots.net/t/24/565/2/49/65/2603249650097493054XvpTUI_th.jpghttp://thumb14.webshots.net/t/64/564/6/89/77/2752689770097493054skXzAT_th.jpghttp://thumb14.webshots.net/t/22/22/0/2/68/2589002680097493054ftBuBw_th.jpghttp://thumb14.webshots.net/t/28/28/8/30/30/2075830300097493054aSSlFv_th.jpghttp://thumb14.webshots.net/t/24/565/5/22/8/2609522080097493054ZNRJeA_th.jpghttp://thumb14.webshots.net/t/69/169/4/66/56/2729466560097493054oBZsXT_th.jpg
Guido Salvage - "Where rust is beautiful"

Studebaker horse drawn doctor’s buggy; Studebaker horse drawn “Izzer” buggy; 1946 M-16 fire truck; 1948 M-16 grain truck; 1949 2R17A fire truck; 1950 2R5 pickup; 1952 2R17A grain truck; 1952 Packard 200 4 door; 1955 E-38 grain truck; 1957 3E-40 flatbed; 1961 6E-28 grain truck; 1962 7E-13D 4x4 rack truck; 1962 7E-7 Champ pickup; 1962 GT Hawk 4 speed; 1963 8E-28 flatbed; 1964 Avanti R2 4 speed; 1964 Cruiser and various other "treasures" (including a 1959 IH B-120 4 wheel drive, a 1970 Dodge W-200 Power Wagon and numerous Oliver and Cockshutt tractors).

See pictures here: http://community.webshots.com/user/GuidoSalvage

Hiding and preserving Studebakers in Richmond, Goochland & Louisa, Va.

8E45E
03-06-2008, 01:46 PM
quote:Originally posted by lstude
Even if Ford goes down, Alan Mulally will be paid well or get a golden parachute!



Will that be before, or after he writes a book about his 'life and times' over at Ford???[:0][B)][:p]:D

Craig

8E45E
03-06-2008, 01:46 PM
quote:Originally posted by lstude
Even if Ford goes down, Alan Mulally will be paid well or get a golden parachute!



Will that be before, or after he writes a book about his 'life and times' over at Ford???[:0][B)][:p]:D

Craig