Re: SP merger

Posted by Steve203 On 2015/3/8 18:59:31

<i>And he would have been watching Studebaker the whole time, knowing the size of their existing owner base, dealership base and volume potential.</i>

That is what Nance was doing. The Ward book talks about Nance ordering study after study of potential merger partners. He kept coming back to Studebaker, for the reasons you cite. Like the move to Conner, Studebaker "looked good on paper"

Take a look at Jet sales. iirc, Hudson only sold 21,000 Jets in the model's first year. Far more Aeros and Henry Js were sold in their first years. Second year Jet sales were something like 17,000. In comparison, in 54 Nash sold 36,000 Ramblers. The Jet was a dead duck. Barit knew it.

Studebaker could have done a cut down Champion to sell as a bottom end Hudson, but Studebaker volume was far below breakeven, too far for selling 20,000 compacts/yr as Hudsons to get them into the black.

Jefferson was in poor material condition. Roy Chapin told Langworth nothing had been spent on maintenance in 10 years, maybe 20 years. Best thing for Jefferson is close assembly immediately, then close the engine plant in a couple years as the Hudson engines are phased out, just as AMC did.

As for Hudson customers accepting a Clipper based Hornet, Hudson's clientle was already rejecting the step down by 53, so I would say there was little to lose. Even if the Clipper based Hudsons were rejected the way the Nash based Hudsons were, Packard still would gain the body plant, sevice parts business and dealers.