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Falling Market Share

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  • Falling Market Share

    It is a dreary rainy day here, so I decided to try to clean the basement. Not making much progress, as I keep getting sidetracked everytime I dig something out. Case in point, I found a copy of the notice to Studebaker shareholders on the advantages of the merger with Packard, dated July 9, 1954. One interesing fact documented is the falling market share of the company:

    Year................Studebaker............Packard...........Combined
    1947..................3.2%.....................1.5%..............4.7%
    1948..................4.0%.....................2.5%..............6.5%
    1949..................4.4%.....................2.1%..............6.5%
    1950..................4.0%.....................1.1%..............5.1%
    1951..................4.2%.....................1.4%..............5.6%
    1952..................3.7%.....................1.4%..............5.1%
    1953..................2.9%.....................1.3%..............4.2%
    1954..................1.4%.....................0.9%..............2.3%

    As can be seen, the combined company had a lower market share than just Packard alone had in '48. The combined companies saw their share drop by nearly 2/3rds in just five years. Really makes you see how fast things fell apart for both Studebaker and Packard.

    The full report to shareholders trys to paint an optimistic picture. It talks of using the Mt.Vernon plant in California to produce Packards, starting auto production in New Jersey, and Packard producing all automatic transmissons.

    I also dug up my box of old Automotive News from the '50s and '60s, so I will try to post some other interesting (well, interesting to ME at least) items as I come across them.
    Eric DeRosa


    \'63 R2 Lark
    \'60 Lark Convertible

  • #2
    Should I sell my Studebaker stock?

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    • #3
      Don't sell! It will soon be worth as much as a Fortune 500 stock.
      sigpic
      Lark Parker --Just an innocent possum strolling down life's highway.

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      • #4
        Hi

        A further irony seen in the percentages is that both companies were fielding either a car newly restyled only three years prior or an only one year old complete renewal. While current styling was a factor in sales, powertrain and pricing were just as important.

        For the Packard straight eight, however refined and reliable it was, was perceived as old-fashion and out-of-date compared to the new ohv V-8's. For Studebaker, a sedan series lacking the appeal of the coupes and hardtops and pricing beyond it's expected market, conspired to derail what should have been a runaway success.

        Merger was a vain hope to turn around the myriad problems that both companies had developed just as the market became even more fiercely competitive than before.

        Steve

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        • #5
          Very interesting, Eric. Please keep feeding us info as it becomes available. I taught college and high school marketing and find this useful for future reference.
          1957 Studebaker Champion 2 door. Staten Island, New York.

          "Education is not the learning of facts, but the training of the mind to think." -Albert Einstein

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          • #6
            "Don't sell! It will soon be worth as much as a Fortune 500 stock."

            That may be true, Dale, and my Confederate paper money is already worth more than US dollars!
            Barry'd in Studes

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