Re: What SINGLE factor MOST contributed to the demise of Packard?

Posted by Owen_Dyneto On 2013/10/24 22:20:59

Steve, thanks for a very insightful and nicely articulated commentary; myself and I daresay most serious students of Packard's history would be in agreement with you on many of your points.

I did not intend to add to this thread, these "what ifs" seem to come and go like summer rain and for the most part nothing new is ever said; most folks have their own ideas on the topic and I suspect it's unlikely that anyone's arguments are likely to change someone else's position. A nice companion to your piece, as JW pointed out earlier, is Robert Neal's "History As It Should Have Been" in the current Packard Cormorant publication.

Had I commented earlier, I would have started by saying that in my opinion the SINGLE most significant event that set Packard on a new and divergent path was the introduction in 1937 of the 110. It's success drew the majority of their management's focus for the better part of the next 20 years and spawned a whole series of related down-the-line decisions away from their traditional values to volume for the sake of volume at the expense of their traditional customer base and reputation. Not that the 110 or it's later offspring were bad cars - quite the opposite - they were very good cars. But as the man who just bought a $4000+ 1937 Packard might have said to himself, a PACKARD for $795 - are you kidding me - next time I'll see what Cadillac has to offer.

There are those who say the 110 was essential to Packard surviving the depression; I doubt very much that that is true and it would be an interesting hypothesis to study. In the first case the depression, except for a little resurgence in 1938, was pretty much over. And yes, they sold 65,000 110s and 50,000 120s. The 120 WAS necessary in 1935 to Packard's survival but let me ask - if the 110 didn't exist, how many of those 110 sales would have gone to 120s (at a better profit per car)? and perhaps kept Packard's focus more upscale? If the management time, financial resources and planning/marketing efforts that was spent on the 110 would have been spent in the direction of maintaining and enhancing a more meaningful differentiation between the 120 and the senior cars, I suspect Packard's future would have been more glorious, yet in the end the day of the independents were numbered regardless. But Steve, you said it better!