Re: Would it have been easier to salvage Packard than Studebaker?

Posted by John Harley On 2011/1/3 21:04:12

Friends

Read the Kimes book,The Fall of the Packard Motor Car Company, and Master Motor Builders. After the war, 50% of Packard's business and 80% of their profits was non-auto, mostly defense. The figures are in black and white year to year in Mr. Neal's book. The non auto business subsidized the auto business.

"Engine Charlie" Wilson, Chairman of General Motors, became Eisenhower's Secretary of Defense. During his confirmation hearings he uttered the famous words " What's good for the country is good for General Motors and what's good for General Motors is good for the country"

You can guess what happened next. Packard soon lost their defense business to General Motors for 'security reasons" This was after PMCC had kept their defense billing under the cost plus 3% rate during WWII and almost immediately after building the Utica jet engine plant. Is your blood boiling yet?


At some point in the early 60's the Studebaker board decided that there were easier ways to make money than manufacturing cars, just as Everett Loban Cord and others did before. They got into other businesses

Regards


John Harley