Re: Clippers at the Motor Muster.

Posted by 58L8134 On 2015/6/28 14:40:41

Hi

This just in, found in the carriage of an dusty IBM Tele-Type machine, Dated August 28, 1956.

Studebaker-Packard and Ford Ink Agreement Beneficial to All Participants

Detroit - Aug 28 (AP) After months of at-times intense negotiations, principles of Studebaker-Packard Corporation announced the annulment of their October 1,1954 merger agreement, clearing the way for purchase of the Packard-Clipper Division assets by Ford Motor Company. S-P President James Nance, with Studebaker Acting-President Harold Churchill and Ford Motor Company President Henry Ford II at his side, revealed the terms of their agreement. Dignitaries from both corporations were in attendance.

With the corporate "divorce" of Packard-Clipper Division from what will again be Studebaker Corporation, the latter will receive $35 million in exchange for all Packard Motor Car Corporation assets in place prior to the merger, leases affected since that time, plus Studebaker's Chippewa Avenue South Bend plant as well as their remaining Department of Defense Ordinance Contracts currently in affect. Approval by the Pentagon is expected this week.

Although called a "highly unorthodox" action by business analysts, this has precedent with Studebaker two decades ago when Pierce-Arrow Corporation was bought by a Buffalo investment group from the company, then in receivership. The current deal gives Acting-President Churchill badly needed operating capital after four calendar years of significant losses. Mr. Churchill expressed optimism for the future, saying "This welcome agreement gives up breathing room to maintain operations while developing a new dimension in motoring which we believe the American people need and will heartily embrace." Mr. Churchill wouldn't reveal further details though pressed by reporters.

Mr. Ford, who seemed pleased by the agreement, issued this statement: "With our acquisition of the Packard and Clipper Division, we are now positioned to give our customers a choice of fully-competitive cars to meet their every automotive need and aspiration. Packard joins our Lincolns and Continentals to give our fine car customers more diverse choices fully covering that important segment. One need look no further than our Lincoln, Packard and Continental dealer for the finest luxury automobiles available today" With that, Mr. Ford left to attend to other pressing business, company officials answered reporter's questions thereafter.

Mr. James Nance will continue as president of the Packard-Clipper Division of Ford Motor Company. A visibly please Mr. Nance said that now with the backing of Ford, he expects the rough patch experienced by Packard to have been bridged. When the all-new Packards and Clippers currently under development come to market, the public will be astounded by their elegant styling, advanced features and superior quality. He stated the overall objective is to return Packard to leadership of the high quality luxury car field, a position it held in the pre-war years.

Approval by Studebaker-Packard stockholders of the Packard-Clipper Division sale came swiftly a week ago when continued rumors of a complete corporate shutdown leaked to the financial media, and were confirmed by highly placed sources. Although a small group of stockholders threatened to challenge the vote, that challenge is expected to have no affect.

Both President Eisenhower and Democratic Candidate Adlai Stevenson voiced approval for the agreement, each noting that continued employment numbers should experience no adverse affects in either Detroit or South Bend, something that was feared before the announcement.

There you have it, the lost Associated Press Tele-Type News Belief.

Steve