8.75 vs 2.1

Posted by Steve203 On 2014/11/16 0:49:08

Spent most of this year trying to get a general view of what was happening with the independents in the mid 50s: two books on Kaiser, one on Hudson, the Ward book about Packard, side trips to Hall-Scott and Curtiss-Wright. Started the Foster book on AMC this evening.

I have heard that Pat Foster doesn't like Jim Nance. Really believe it now. In his book on Hudson, Langworth left the impression that the Packard board, and Nance in particular, were drowning in their own hubris. Foster goes even farther, saying that, after announcing the Nash/Hudson merger in early 54, Mason gave a presentation to the Packard board, but Nance talked the board into rejecting the proposal, because Mason was proposing Nance only be the VP of the Packard/Clipper division, reporting to Romney. I have not seen specific information elsewhere to either confirm or deny that reported presentation to the board.

The real howler is Foster's presentation of the "reciprocity" dispute. According to Foster, while Hudson closed Detroit production operations in fall 54, they held on to the body plant, in anticipation of orders from Packard for stampings and bodies. Again, according to Foster, in late 54 Romney heard via the grapevine that Packard had taken an option to buy the Murray body plant.

If Romney was expecting body business from Packard in late 54, he was delusional, as Packard had leased Conner in May and was spending $12M moving final assembly into Conner. According to Ward, Packard signed the lease on Conner the day before AMC announced Hudson in Detroit would be shut down, so Packard would not have known that the Hudson body plant would be available.

Then we get to the interesting nugget. Ward reports that Chrysler wanted $8.75M for Packard to buy Conner. I knew from previous reading that the Hudson stamping plant was bought by Cadillac in 56 and used until Poletown opened. Foster reports the price AMC received for the plant: $2.1M, a quarter of what Colbert wanted for Conner. Tex Colbert knew he had Packard in a vice, and exploited it.