Re: SP merger

Posted by Mahoning63 On 2015/3/7 8:09:23

Steve203 - here's a run-out of another S-P merger scenario that folds in your other want... merging with Hudson! Enjoy.

It's late 1953 and Nance is looking at his many conundrums and options:

- seller's market gone, Packard in trouble
- Mason will be King or no merger, Romney competition
- if Mason gets Hudson, AMC only gets stronger
- Barit has approached Nance white flag in hand
- Nance likes lowness of Hudsons and sees ugly Jet as potential Depression-proof small car
- Conner to be sold, Packard at risk
- 1955 is line in sand... must be a big product intro
- Panther style and proportions point to future, fiberglass unknown
- Studebaker sales OK but signs of trouble... Studebaker white flag 1-2 years behind Barit?


So Nance acts:

- buys Hudson on December 1, 1953
- Investors agreeable to "Big Plan", see Nance as man of action, Mason as man of words only (...Mason furious!)
- all hands focus on 55's on common Hudson body shell with Panther's basic styling and proportions
- Hudson floorpan and unibody assembly carried over, jigs modified where possible, all else new
- longer hood and rear overhang for Packard, shorter for Hudson
- 352 V8 for Packard, 320 V8 for Hudson. Big Six dropped. Wasp dropped.
- Jet gets smart looking 2 and 4-door wagon, helps proportions, investment kept minimal
- Studebaker kept on watch list

Which leads to:

- financially disastrous 1954, ugly across the board
- late launch of '55s, around February/March
- end of line for most EGB production facilities, sayonara Conner, bodies now Jefferson-built
- '55s are homerun, sales quickly take off, teething problems forgiven by enthusiastic public
- 1955 closes breakeven despite Jet, huge sigh of relief
- Nance orders '57 freshening of large cars (Panther's basic proportions were already similar to '57 GM C-bodies)
- Nance begins plans for all new large '59s
- Nance turns attention to Jet, targets major redesign for '57, longer/wider/lower bodies, OHV Six
- Nance watches Studebaker implode, waits for right moment
- Premature moment comes in early '55, Studebaker offers "merger of equals", Nance rejects, waits
- Final moment comes in late '55, Studebaker at bankruptcy's door, willing to do anything
- Nance doesn't want taint of bankruptcy on Studebaker, buys them before they go under, rock bottom $, no strings
- '57 Jet program quickly becomes Jet/Studebaker program
- Nance targets Jet production in Studebaker's best plants, w/Hudson unibody, upgraded Studebaker Six and V8s, all dependent on Union contract
- '57 Jet/Studebakers do OK then take off in '58/'59, blunting Rambler's potential
- '59 large Hudson/Packards do less well than expected but Nance's product diversification leads to overall success
- P-H-S becomes Big 4th with huge dealer network
- Nash, Ramlber or whatever they are called end up much the weaker for it all