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Board index » All Posts (Steve203)




Re: Merger
#11
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Steve203
Quote:

58L8134 wrote:
Hi

Were it not for the addition of Jeep in 1970, the evergreen Hornet/Concord/Eagle platform and 'Franco-American' Motors episode, it likely AMC would have failed in the 1970's. To the extent it continued to until 1987 as independent is something of a miracle.

Steve


Yup, the Pacer and Matador coupe burned the last of their money. People freaked when gas topped 50 cents/gallon in 74 and snapped up anything with a 5, including massive numbers of Gremlins and Hornets. iirc AMC was about busted when Renault came on the scene in the late 70s. Renault made several infusions of cash and an all new line to build the Alliance, plus the Brampton plant that Chrysler is still using.

Of course I can't find the pic on line, but, within the last few months, Hemmings ran an article about Pacer based concepts that AMC looked at. One was a Pacer wagon, with the Eagle AWD powertrain, and a squared off, more purposeful front clip. Absolutely brilliant.

Posted on: 2017/1/24 21:10
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Re: Merger
#12
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Steve203
Quote:

fredinflorida wrote:
Gosh , Steve, that was 1975 so we were working on one of down periods for AMC. They teetered on bankruptcy many times. We studied several companies but AMC was our computer simulation.


So your scenario was from 75 going forward? They were running out of options by then, having spent so much on the Pacer and Matador coupe. With 20/20 hindsight there were things they could have done around 72 that would have had them in a better position in the late 70s, but at the time, those other options would have been as big a gamble as the Pacer was.

Posted on: 2017/1/23 17:49
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Re: Interesting connection
#13
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Steve203
Studebaker probably had little to say about selling Pierce as the creditors were baying for money. Erskine has also bought control of White Motor, which was sold off.

Posted on: 2017/1/23 2:11
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Re: Merger
#14
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Steve203
Quote:

fredinflorida wrote:
Your comment brought back my last course in my senior year of business school taught by the Dean of the Business School. The class was divided into groups of five each and we became the Board of Directors for American Motors Corporation. Our job was to run and hopefully save the company. Our decisions were fed into a computer model and implemented and we received the results, cash flow, sales figures, bank balances etc. We could see our results weekly.We were either going down the tubes or saving the company. We were competing against other groups for a grade so we didn"t discuss what we were doing. We closed some plants, increase advertising with dealers, cut cost, etc, pushed certain models. Any way my group saved the company and won the competition. Great learning experience.


I would have loved to take a turn at that game. When I was in grad school we played a soda pop company simulation.

What year of AMC history did you start with? What options did you have? In what simulated year did you save the company?

My alternate history of AMC starts in 54, with the merger with Studebaker, making the Studebaker V8 available to Nash and thus avoiding the $10M spent getting the Potter V8 in production. Then shuttering the Kenosha foundry and engine plant, consolidating those operations in South Bend, as assembly in South Bend is closed. Use the footprint in Kenosha freed up by removing the foundry and engine plant to build a body plant next to the assembly plant to eliminate trucking assembled bodies from Milwaukee.

Posted on: 2017/1/23 1:55
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Re: Merger
#15
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Steve203
Quote:

fredinflorida wrote:
Thanks. I would have never listened to those investment bankers that talked the Packard board into the deal with Studebaker. Truth be told they are the ones that came out of the deal smelling like a rose.


Rather like the tourist being shown around NYC. The guide points out a marina full of yachts belonging to stock brokers. "And where are their client's yachts?" asked the tourist.

The whole thing about Studebaker and Packard sharing a platform was delusional as the body would be too wide to fit through the paint booths and ovens in the South Bend body plant. The book about Harold Churchill talks about the closure of the Detroit assembly operations. They considered moving Packard production to South Bend, but it would have cost millions to rework the body plant. The Packardbaker was a relative bargain at $3.5M.

The entire idea of consolidating facilities was unrealistic because, by the time the merger was done, Packard had already committed to assembly at Conner and powertrain production in Utica.

But, Nance went into Packard with the ambition to do a big deal. Walter Grant was telling him Packard was "rapidly approaching bankruptcy". And Nash had already taken over the Hudson dealer network and customer base. The entire episode smells strongly of a determination to do a big deal, regardless of cost.

Posted on: 2017/1/23 1:45
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Re: PT Boat
#16
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Steve203
Packard 2500 start up and run on a test stand at Mystic Seaport.

https://www.youtube.com/watch?v=AW3rFfF565c

Posted on: 2016/11/13 18:47
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Re: PT Boat
#17
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Steve203
iirc, the prototype PT boats the USN tested used a variety of engines, including the Packard 2500 and the Hall-Scott Defender (around 2,000cuin V12) The Navy settled on the Packard engine, while the Defender was used in other high speed launches, including the Brit Fairmile series, so the Packard must have had compelling virtues.

Took this pic of the 2500 at the PPG. I noticed the engine is made very much like a Liberty, with separate cylinder barrels bolted to a common crankcase, while the valve gear, which was exposed on the Liberty, is enclosed on the 2500.

The thought crosses my mind that the Packard engines could have been converted to air cooling. The air cooled Continental V12s used in US tanks of the 50s and 60s are built the same way, separate cylinder barrels on a common crankcase, with the cylinder barrels carrying cooling fins, instead of the welded on water jackets.

The Brits used Liberty engines in their Cruiser class tanks, and had a lot of trouble with the Liberty powered Crusaders in North Africa. Can't help but wonder if an adaptation of the 2A-1500, particularly an air cooled version, would have given the Crusader more power and better reliability than the overstressed, overheating Liberty.

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Posted on: 2016/11/13 18:38
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Re: Packard plant update
#18
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Steve203
Call me too pessimistic, but I think this project will be a failure.

The largest handicap is Palazuelo lost $80M of financing last winter. He said at the time that he will press on, financing the project himself. The fact remains that their FB page that used to have rennovation updates every few weeks has not shown new work going on at the plant in months, only PR blurbs like the one linked to above.

Posted on: 2016/8/8 22:51
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Packard plant update
#19
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Steve203
Sounds like their plans so far involve the buildings on the north side of E Grand.

http://www.freep.com/story/money/business/2016/08/06/packard-plant-redevelopment-detroit/87913012/

Posted on: 2016/8/7 10:13
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Re: Packard built jet engine
#20
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Steve203
Quote:

kleroy wrote:
I never even knew that Packard built Jet engines! Just wanted to share, thanks!


Follow the link TroyT posted. Packard also produced prototype jet engines of it's own design, under a guaranteed profit contract from the government. When the government decided it did not need so many companies developing jets, the guaranteed profit contracts ended and Packard shut down the project as it had no interest itself in pursuing jets.

Posted on: 2016/7/17 23:38
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