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Nitram
05-23-2008, 07:51 PM
1962 Time magazine article.

Shelling out some big buck to diversify? Maybe should have put it back into the auto division to keep afloat.

http://www.time.com/time/magazine/article/0,9171,827902,00.html?promoid=googlep


http://farm1.static.flickr.com/158/360197307_8639ee4a46_m.jpg[/img=left]
[i]~Nitram~
57 Transtar
Lancaster, PA

Guido
05-23-2008, 07:56 PM
Studebaker needed to take advantage of the available tax credits and was under pressure from the board to diversify away from automotive production. I seem to recall that Egbert did this deal on his own, which did not sit well with the board. This was a stock deal, so no money exchanged hands.

The irony is that Studebaker sold it back to Kirk Kerkorian, who today as he approaches 90 is still making overtures to car manufacturers.

http://thumb14.webshots.net/t/63/663/9/36/86/2567936860097493054TXiheL_th.jpgGuido Salvage - "Where rust is beautiful" and real Studebaker horsepower lives

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

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

bondobilly
05-23-2008, 10:29 PM
I have a large framed poster of a DC-8 painted In TIA livery and at the bottom of the poster is the wording

Trans International Airlines
Subsidery of
Studebaker Motor Corporation

Avantidon
05-27-2008, 08:27 AM
When Sherwood Egbert was hired as President of Studebaker, he was given a mandate by the BoD to diversify the Corporation. This directive was the direct result of Chuchill's failure to do so. One of those acquisitions was TIA a contract carrier mostly for the Federal Govt. I flew home from SE Asia on a TIA plane via the Phillipines and Japan to CA. The 1963 Annual Report of the Corporation touts this purchase. While I agree that the $$$$ spent on this purchase should have gone to Capital Equipment for the Auto Division, that was not the direction nor the intent of the BoD which was clearly intent on shutting down the Auto Division. The best Egbert could do was to paint the entire plant which he did do. Also theUnion strike of 1961 did not help the division's survival.

See you in the future as I write about our past

Nitram
05-27-2008, 08:35 PM
quote:Originally posted by Avantidon

When Sherwood Egbert was hired as President of Studebaker, he was given a mandate by the BoD to diversify the Corporation. One of those acquisitions was TIA a contract carrier mostly for the Federal Govt. While I agree that the $$$$ spent on this purchase should have gone to Capital Equipment for the Auto Division, that was not the direction nor the intent of the BoD which was clearly intent on shutting down the Auto Division.

You are saying something here I never knew or heard anyone mention before. I've never heard about the Board of Directors [u]wanting</u> to close out the auto division. If this is the case, then why are there so many people today who still speculate, question and argue as to why the company went out of business? If it was the BoDs' intent to shut down the auto division then it would be a no brainer as to why they went out of business. I'm not arguing against you it's just that I never heard this point of view before.
I still find it very fascinating that Studebaker, as huge as they were, came to an end.
I've also heard countless perspectives, arguements, ideas suggestions etc. as to what brought about Studes demise, but not this one; Interesting I must say. [?]
.


http://farm1.static.flickr.com/158/360197307_8639ee4a46_m.jpg[/img=left]
[i]~Nitram~
57 Transtar
Lancaster, PA

Avantidon
05-27-2008, 08:41 PM
Look me up in the Keystone Roster if you are a KRC member and give me a call and we can have a very long and interesting conversation. I can share alot with you about the company and the family especially the first 100 years in Penna.

See you in the future as I write about our past

Swifster
05-27-2008, 08:53 PM
quote:Originally posted by Nitram

If this is the case, then why are there so many people today who still speculate, question and argue as to why the company went out of business? If it was the BoDs' intent to shut down the auto division then it would be a no brainer as to why they went out of business.

The company never went out of business. What's left is currently a leasing subsiderary of a Long Island Bank.

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Tom - Mulberry, FL

1964 Studebaker Daytona - 289 4V, 4-Speed (Cost To Date: $2125.60)

http://i74.photobucket.com/albums/i280/Swifster/rollingpi.gif http://i74.photobucket.com/albums/i280/Swifster/The%20Daytona%20File/Avatar%20Size/01-01-05TheStartingPoint.jpg http://i74.photobucket.com/albums/i280/Swifster/The%20Daytona%20File/Avatar%20Size/07-17-07FrontClipRemoved.jpg http://i74.photobucket.com/albums/i280/Swifster/The%20Daytona%20File/Avatar%20Size/04-11-08CoolingFan.jpg