Announcement

Collapse
No announcement yet.

Meeting at CeRap- regarding SASCO

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Meeting at CeRap- regarding SASCO

    We all know the situation RE: SASCO. We are now, at best, 6 months from it's closing, and who-knows-how-much inventory being lost forever. I'm guessing Dennis will close it down sooner if he can find a quick exit ramp.

    I have spent a lot of time and energy trying to think of a solution. My mind simply cannot grasp the concept of brand new parts, made 40 and 50 years ago by a long-gone manufacturer for a brand of cars I happen to love, being lost forever- tossed in a landfill, or melted down to make parts that won't help one Studebaker continue on. Obviously, there needs to be a way to save them- all.

    I have spent most of my life making business decisions. I have put together difficult, complicated deals and made them happen. But this one has me stumped! I have done lots of figuring, from lots of angles; I have some ideas, but have yet to find the combination that's workable. This situation is like the proverbial onion- many, many layers: The inventory, the owners, the banks, the logistics, the ticking clock- and the parts users (present and future), the hobbyists, the fans, the prices (current and future), warehousing... then add the folks- like myself- searching for a solution, including those currently in negotiations... that's a huge onion.

    I'm proposing a meeting of a group of concerned/interested parties at Cedar Rapids. Looking at the schedule it looks like maybe Wed. night after the STF dinner and the drags, maybe 8PM. I'm suggesting a discussion of ideas geared toward saving the inventory. An in-person discussion eliminates the crackpots and snipers looking to salve their boredom by stirring up trouble behind the safety of a computer. Most of us here recognize the gravity of the situation, and likely have some ideas; and typing on a public forum is just not a good method to work through something like this.

    Being realistic, a meeting like this may or may not accomplish anything. Still, we have to try anything we can... at least I do. This is one of those very few times in life that calls for throwing everything at it there is- if it doesn't pan out, I have to know I tried my best. The meeting is open to anyone who is interested in a frank, honest discussion, with egos checked at the door. Complainers and nitpickers need not attend- thinkers and knowledgeable folks are preferred. I would hope to see and hear from those knowledgeable and involved with the situation and history; maybe an open dialogue would spark the beginnings of a plan.

    My cards on the table: I have been a car lover all my 48 years, especially collector cars. I have only been involved with Studebakers for about 6 years, but they have become my favorite. What I have to offer is the willingness to roll up my sleeves and give all I can to make a solution happen. What I don't have is the capital to fund a solution. I am lessening my involvement in the used car business, and am willing to consider a plan to take on the management of some sort of situation. I have a full-time job with the USPS, so I don't need this venture to put food on the table; but it has to be structured so it doesn't cost me. I've got 10 acres at my home, plus another 34 next door, plus another 26 at another location 9 miles from my home; so there's room for a building in several places. I am just as happy to help someone else formulate their own plan. My singular goal is to save everything from being lost- or at least as much as is possible.

    What do you think? If you would make an effort to attend, no strings attatched, let me know here, or e-mail me at bams50@msn.com . If you think I'm nuts, let me know that too. At this point, I don't know! But one thing I do know is, some AMC guys I know would give most anything for a chance like we have here, instead of what happened, which was Chrysler scrapping everything without mercy when they bought AMC.

    I'm trying to make a workable plan, including rearranging my life to do so. If you weren't going to CeRap, try to make it. Let's get together and see what we can come up wi

  • #2
    Bob you can count myself and Ian Mackellar from Australia to be there, time is short and still how many people know what is really going behind closed doors with Dennis, bank, and who ever?...Bob

    Bob Peterson / C & B Studebakers

    Castro Valley, CA

    Candbstudebakers
    Castro Valley,
    California


    Comment


    • #3
      GREAT IDEA, Bob! Believe me, I would be there if I could. We DO need to try to find an answer, and there have already been some good suggestions from guys on the forum, allbeit mixed in with some other "stuff" as you say.

      But a layoff earlier this year resulted in a new job from which I can't get time off as yet, so I have a suggestion as there may well be others in my shoes: if there is a speaker phone in the room where you will have the meeting, we could set up a conference line for a limited number to call in on. 8PM in Iowa is not a bad time for those in other parts of the country to dial in. I think I have the name of a conferencing service that is free or minimal charge, or we could use Skype at no charge.

      Just a thought to keep in mind, in the hope that you get this together.

      Thanks again for working for the future of the Studebaker Tradition
      Gene Nagle

      Escondido, CA
      Originally from Rochester, NY (and I DO know where Parish is!)



      Gene Nagle
      1963 Hawk R1
      Gene Nagle
      1963 Hawk R1
      1985 Avanti

      Comment


      • #4
        To paraphrase the old comedian George Gobel..."sometimes I feel like a brown shoe at a formal wedding"...I have chimed in with some opinions on this situation but have to admit that I have no resources to contribute. However, I will do all I can to give positive support and encouragement to any of you capable and willing to actively seek a solution. I ask that others in my position do the same and commit to refrain from negative nit picking of whatever results from the effort.

        This situation is a serious matter and fraught with many pitfalls and potential problems. Equally, it is a tremendous opportunity to accomplish a task that few in our hobby could dream. Good luck and I wish everybody the best!

        John Clary
        Greer, SC

        Life... is what happens as you are making plans.
        SDC member since 1975
        John Clary
        Greer, SC

        SDC member since 1975

        Comment


        • #5
          I have urged the SDC board on a couple of occasions to get involved in the SASCO situation in some manner, for the same reasons that Bams has outlined. However, Ed Reynolds has asked the board to delay doing anything until he knows whether or not he can make a deal with Dennis Lambert for the parts. Given Ed's obvious conflict-of-interest situeation, that's fair enough. And I would view SI's purchase of the whole inventory to be a great solution. But if they can't make a deal and the clock keeps ticking away, what then?

          No one on the board opposed "getting involved", but SDC is not in the parts-vending business, and would never commit that level of resources to anything, no matter how deserving. SDC also has no local representative in SB that could arrange to "save" the parts. I think Champ64's description of the situation in another thread is fairly accurate -- the bottom line is that the two parties may be too far apart on the money.

          One possibility that I proposed to the board was to provide low-interest loans to vendors willing to buy parts of the inventory. Again, no one on the board objected, but the legalities would have to be investigated. Meanwhile, the clock continues to tick.

          BTW, the general membership meeting with the board is scheduled for Tuesday, 14 June -- so the proposed meeting will be AFTER the board's meeting with the membership. The board can vote on things by email, but it is often a lot slower than the kind of decision-making that can occur in a once-a-year, face-to-face meeting. Maybe it would be worthwhile for those with strong opinions to bring up the SASCO situation at the general membership meeting, if for no other reason than to remind the board that they, represenating all club members, have a big stake in the future of our parts supply. At least we would all know the situation -- we do spend a lot of time reviewing the same info.

          Hopefully, the situation will be resolved by that time and we can all celebrate the continued availability of Stude parts.

          Skip Lackie
          Board member, Atlantic Zone

          (Edited to revise 4th paragraph)
          Skip Lackie

          Comment


          • #6
            The problem has been dissected fairly well over the last 60-90 days. I suggest that the agenda of any such gathering be [u]solution focused</u>. Come armed with as many ideas, facts and tangible plans as possible.
            I suggest that someone from the Cedar Rapids host committee select a noninterested 3rd party to act as a facilitator for this meeting. This person will be charged with keeping the discussion focused and on track. If our goal is a viable solution to the SASCO parts future, we can't afford to waste time dredging up the villians and demons from the past. Move forward. If the problem is ultimately found to be insurmountable, we will know that the effort was made.

            I'll be there with my 2 cents. (literally!)



            Pat Casey
            55 Commander
            58 Transtar
            62 GT Hawk
            66 Cruiser
            SDC Member since 1988

            Comment


            • #7
              Well, I have more time than money so maybe I'll make the trip. I do continue to play the Powerball lottery for an opportunity to buy SASCO, but so far the lottery people haven't been accommodating.



              ---------------------------------------------------------------------------------------------------
              Tom - Mulberry, FL

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

              1964 Studebaker Commander 170-1V, 3-speed w/OD (Cost to Date: $623.67)

              Tom - Bradenton, FL

              1964 Studebaker Daytona - 289 4V, 4-Speed (Cost To Date: $2514.10)
              1964 Studebaker Commander - 170 1V, 3-Speed w/OD

              Comment


              • #8
                I'm sure that I personally have less than the total amount of knowledge on what may be going on with Dennis and interested parties, and there are those on the forum that may just know nearly all of it.

                That said, my first thought is that is Dennis willing to participate in this meeting and/or have a representative so that his parameters are known during the discussion. Seems like a lot of posts in different threads get summed up with something like "it depends on what Dennis wants to or can do. I think it would be productive if he were able to voice these criteria in real time.

                I have no doubt that there are some of you guys that are friends of his and have an absolutely accurate idea of what his desires and capabilities are, but it could sure save time in "getting back to you" and also create an environment in which raw ideas could be talked about and critiqued.

                '50 Champion, 1 family owner

                Comment


                • #9
                  If SDC were to get involved it would have to be on a non-profit basis and that would be in a conflict with many of our loyal vendors (SASCO included) who support the club, some of whom have a great track record in business, too. Please have a meeting and bang together a proposal, should the for-profit participants fail to save the inventory. Governments (and even governing bodies of great non-profit clubs) have a genuine roll to play. Most mega projects would never have been accomplished if we waited for a private, for-profit, white knight. I'd dump in my small $ contribution to a non-profit, but only if the white knights don't get there in time. Good luck and God speed.
                  Dave Warren (Perry Mason by day, Perry Como by night)

                  Comment


                  • #10
                    quote:Originally posted by BobGlasscock
                    That said, my first thought is that is Dennis willing to participate in this meeting...
                    Excellent point. Without Dennis, it would be rather meaningless.

                    Some here (in prior threads) have already jumped to some pretty big and wrong conclusions about "the facts", and have come up with ideas that have no bearing on what is actually happening or what Dennis wants to have happen (it IS his business you know). I'm not sure that even at this point we have all the facts.

                    I would guess he would appreciate some ideas from a group such as this, but developing an action plan without him present is probably a waste of time.



                    Dick Steinkamp
                    Bellingham, WA

                    Dick Steinkamp
                    Bellingham, WA

                    Comment


                    • #11
                      quote:Originally posted by Dick Steinkamp

                      quote:Originally posted by BobGlasscock
                      That said, my first thought is that is Dennis willing to participate in this meeting...
                      Excellent point. Without Dennis, it would be rather meaningless.
                      I disagree. This is not about Dennis- it's about saving the inventory.

                      It has been suggested I call Dennis and talk to him about any plan to do the above. Good advice, except for one problem: I have no plan to offer. The purpose of the meeting as I see it is to begin discussing ways to formulate a plan to present to Dennis. If I don't have that, I have no business wasting his time. Hell, there may not be any viable solution; no sense wasting his, or my, time if that's the case. This would be nothing more than a think tank.

                      As I said, Dennis would be welcome, but I don't think his presence is necessary, and maybe not prudent. As I understand it his position (input) has been made crystal-clear: He's losing his lease Dec. 31, and has zero interest in moving the inventory and continuing in business; and a large portion of the inventory could end up scrapped. If you have information different than that, let me know and I'll call and verify it. But I haven't seen or heard one statement anywhere that varies from that thus far- maybe I'm wrong. In the meantime, this might be at least a little better than sitting on my hands; that's not my style.

                      It should be noted that Skip mentions one of my main concerns: In no way do I want to get in the way of negotiations being conducted by Ed Reynolds, or any other party. I'm merely suggesting discussing some sort of Plan B in the event the negotiations of the others falls through. Again, my only motivation here is to not end up seeing pictures on the Forum of an excavator with thumb loading big trucks with NOS-parts-turned-debris.

                      I invite Ed, or other possible unknown suitors, to e-mail me if you feel a meeting of this type might in some way jeopardize your negotiations. Naturally, that would be taken under advisement.


                      Robert (Bob) Andrews- on the IoMT (Island of Misfit Toys)
                      Parish, central NY 13131






                      Comment


                      • #12
                        Let me see if I understand this correctly.

                        I am not a banker . But I think I know how a bank operates.

                        IF ..I repeat IF ...the facts have been presented correctly ,

                        a financial institution has provided a large business loan
                        to a vendor of rare automotive parts. This Vendor has been
                        succesfully selling the rare stock for over 40 years.

                        IF .. I repeat IF..the facts have been presented correctly ,

                        the successful vendor ...has business lease problems ...and has
                        to relocate to another business location ...A common business problem.

                        IF ...I repeat IF...the facts have been presented correctly ,

                        the successful vendor is nearing retirement age ...and does not
                        have the desire to continue. Who cannot understand that ? Or find
                        fault with this decision ?

                        That said.

                        IF ...I repeat IF ...the facts have been presented correctly ...

                        The ''Bank/Lender'' is the OWNER OF THE INVENTORY.Not the Vendor.

                        The Bank cares not if the business owner decides to firesale the
                        inventory , sell the inventory to another vendor , or throw everything into the garbage. The Bank wants the PRINCIPAL funding repaid in FULL. These people are not fools...they will extract the gold teeth in your mouth ...not to mention your house, cars , and anything they can sell of yours. And they will.

                        IF ...I repeat IF ..the facts have been correctly presented.....

                        the Bank/Lender will monitoring this drama as it unfolds ....and they will be taking steps to protect their investment.

                        What's my solution you ask ?

                        It's simple. It's called HOBSON's Choice.

                        HOBSON's CHOICE is also called NO CHOICE.[}]

                        The SASCO inventory must remain in South Bend , in a new location ,with current or new management.

                        That's my 2 cents ...IF ..and I repeat IF ..the facts have been correctly presented....[B)]







                        Comment


                        • #13
                          Sounds exactly like the facts as we Know them, except I have not heard of this "must remain in South Bend" issue before! [:0]

                          I don't think the Bank cares where their stuff is, as long as they know!

                          Given the City's History of not caring about Studebaker artifacts, that would be the LAST place a Studebaker Parts Business Operator would want to be! [xx(]

                          StudeRich
                          StudeRich
                          Second Generation Stude Driver,
                          Proud '54 Starliner Owner

                          Comment


                          • #14
                            Bob is looking at the same problem I have. December 31st is too late. And considering the drop dead date, September 30 may be too late. The parts have scrap value and the bank could simply cut it's losses. If the business is incorporated, none of Dennis' personal property would be endangered unless it was used as collateral. This stuff is too important to leave it to two guys playing financial chicken. JMO.

                            ---------------------------------------------------------------------------------------------------
                            Tom - Mulberry, FL

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

                            1964 Studebaker Commander 170-1V, 3-speed w/OD (Cost to Date: $623.67)

                            Tom - Bradenton, FL

                            1964 Studebaker Daytona - 289 4V, 4-Speed (Cost To Date: $2514.10)
                            1964 Studebaker Commander - 170 1V, 3-Speed w/OD

                            Comment


                            • #15
                              quote:Originally posted by Canadoug


                              What's my solution you ask ?

                              It's simple. It's called HOBSON's Choice.

                              HOBSON's CHOICE is also called NO CHOICE.[}]

                              The SASCO inventory must remain in South Bend , in a new location ,with current or new management.

                              I think that would be a good alternative for the bank...but not the ONLY choice.

                              Why South Bend only? The bank would not allow the inventory to leave SB?

                              Why current or new management (actually having two alternatives eliminate the Hobson's Choice argument)? What if it was split up between 2 or more parties? 10 parties...20 parties? If the bank recovered the loan amount, why would it care how many parties ended up with a portion of the inventory?







                              Dick Steinkamp
                              Bellingham, WA

                              Dick Steinkamp
                              Bellingham, WA

                              Comment

                              Working...
                              X