Re: Ultramatic by Borg-Warner?

Posted by Steve203 On 2014/12/31 20:09:48
Here is a diagram of the trans that Studebaker co-developed with Borg-Warner's Detroit Gear division: two speed planetary gearset with torque converter lockout. Sounds familiar, eh?

From my reading, the DG transmission was very highly regarded in it's day.

Interesting how the timeline works out. The Studebaker "Automatic Drive" trans was introduced in 50.

Packard and Studebaker merge in October 54, with one of the expected synergies being using the Ultramatic in V8 Studebakers, rather than the B-W trans.

In January of 55, Nance is complaining about B-W pushing him to sell Packard's Ultramatic production capability, and buying B-W transmissions instead.

Later in 55, B-W announces to Studebaker there will be a large price increase for the DG transmission. For reasons of cost, Studebaker rejects both the DG and the Ultramatic and switches to the cheaper trans produced by B-W's Warner Gear division.

If it wasn't for the big price increase on the DG, I would figure B-W's offer was motivated as much by trying to retain the Studebaker account as it was by trying to gain the Packard account as both accounts were expected to hinge on availability of the Ultramatic.

The time line of Nance rejecting the offer and the price increase changes the scenario.

Was B-W artificially holding the price down on the DG to try and induce Packard to scrap the Ultramatic in it's favor?

Or, did B-W inflate the price increase on the DG to punish S-P for rejecting it's buyout offer for the Ultramatic?

Or, was B-W planning the price increase all along and hoping to leave S-P with no choice but accepting the increase by eliminating the Ultramatic?

I get the impression that Langworth is trying to make it sound like Nance made a mistake by passing on the B-W offer, but, as events played out, I would say that any paranoia Nance may have harbored about abandoning the company's fate to the whims of a subcontractor, again, was justified.

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