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Re: What SINGLE factor MOST contributed to the demise of Packard?
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Home away from home
 
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Rusty, thanks for clarifying. My basic assumption has been incorrect.
Posted on: 2013/10/16 21:18
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The story of ZIS-110, ZIS-115, ZIL-111 & Chaika GAZ-13 on www.guscha.de
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Re: What SINGLE factor MOST contributed to the demise of Packard?
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Would argue that BMW and M-B are better than Toyota and that's why people buy them. They handle better, certain elements of their interiors are of higher quality and they have a personality that Toyota lacks. Their consistency of purpose centers on engineering and appearance whereas Toyota's centers on reliability and value. Lexus is probably a better example of how the Germans win mainly because of reputation and status. The only Lexus vehicles that sell well are the FWD Camry-based ones. The RWD IS sport sedan sold 22,000 units through Sept while the BMW 3-Series sold 78,000 and M-B C-Class sold 67,000. Toyota and Lexus are seen as FWD goody two-shoes brands. With that label comes both opportunities and contraints.
Packard lost its consistency of purpose the day Alvan Macualley decided to make the 110. The problems the company faced post-war have a direct link to his decision.
Posted on: 2013/10/18 7:25
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Re: What SINGLE factor MOST contributed to the demise of Packard?
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Mercedes has always been sold at a premium here in the US, above and beyond the costs of getting the product from Germany to the US (before they opened plants here). They also leave their cheap, small models at home and only sell the upper tier cars here.
I believe a big factor driving their mystique here and their sales they are currently enjoying is the fact that the two leading American Luxury brands of the last 40 years, Cadillac and Lincoln a) cheapened their products to the extent they start $600-ing you to death after the warranty is up, like their other sister brands and: b) Cadillac and Lincoln let customers into the fold who weren't really qualified luxury car buyers, by using the parent company's finance arm (GMAC, Ford Credit) to make the astounding numbers they have racked up since WWII. They sold their soul to make big numbers and in the end alienated the customers who really could afford a fine car. Those buyers now look at Mercedes, and to the same extent Lexus as having the exclusivity they want to keep company with. I am starting to see ghetto Mercedes and Lexus (and Bimmers)', so I wonder where to next for the ruling class?
Posted on: 2013/10/18 11:37
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Re: What SINGLE factor MOST contributed to the demise of Packard?
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There's more competence and entrepreneurialism on the hustling street corners of the ghetto than in the Boardrooms and CEO offices of American Capitalism Inc so if the ruling class is changing its address from Country Club Lane to 15th Street more power to America. One day these kids might redirect their energies and play a major role in digging us out of the mess that generations of well-bred private sector idiots created.
I've been taxied through Berlin in a Mercedes E-Class and it was a darn good car, just as competent as the stuff we see here. I've also been in a Crown Vic cabbie in NY and it was the same disgusting piece of cr@p that my great uncles drove. I also helped engineer (but had no authority to really fix) the 2000s Town Car. It was piece of cr@p with a suit. Mercedes and BMW have earned every penny they have taken in. Cadillac, Lincoln and Imperial deserve their current states... fair, poor and poof. As for Packard, they were the canary in the coal mine that warned of the wholly deficient post-war breeding techniques that America had adopted to grow its business leaders.
Posted on: 2013/10/18 12:12
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Re: What SINGLE factor MOST contributed to the demise of Packard?
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Forum Ambassador
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Quote:
There's more competence and entrepreneurialism on the hustling street corners of the ghetto than in the Boardrooms and CEO offices of American Capitalism Inc so if the ruling class is changing its address from Country Club Lane to 15th Street more power to America. One day these kids might redirect their energies and play a major role in digging us out of the mess that generations of well-bred private sector idiots created. Oh I agree. The situation I was referring to is the typical Detroit/Highland Park/Taylortucky situation where you have a $55,000 car parked in front of a $32,000 house. Our ruling class does not appreciate that.
Posted on: 2013/10/18 12:26
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Re: What SINGLE factor MOST contributed to the demise of Packard?
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There fixed it for you lol. You are arguing basically the same thing I said, in a different way. Packard SHOULD HAVE kept their reputation by building fine cars, and made money with a good quality but lower priced car, in the medium price class. Not a "tin lizzie" but covering the upper medium and high price market from Olds 98 and Buick territory through the Cadillac and Lincoln price range. They could also have used the support of a Studebaker range selling in the Ford - Chev - Pontiac price brackets. I disagree about the 110. It would not hurt Packard unless it was somehow inferior in quality in other words a lemon. If it held up Packard's name for quality and reliability, the fact that it had a 6 cylinder engine and sold for less money would not hurt. PROVIDED they also had good senior Packards as a flag ship brand. Mercedes has built millions of diesel powered 4 cylinder taxicabs, yet they are still looked on as a quality product because of their senior cars. The same parable applies to Packard.
Posted on: 2013/10/18 12:39
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Re: What SINGLE factor MOST contributed to the demise of Packard?
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Wish I could say I rode in Packard taxicab (they did make them) and it was a darn good car, better than a DeSoto or Checker. Wish I could also say that the popularity of Packard cabs proved its staying power in the most severe conditions, and convinced a lot of buyers that Packard was the car to buy in spite of its higher price, because you got quality and long service for your money. If I could say that it would help dispel the myth that selling mass produced cars to Methodists killed Packard, and if they had only stuck to hand making a few hundred bespoke 12 cylinder limousines a year for millionaires they would still be in business.
Posted on: 2013/10/18 12:59
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Re: What SINGLE factor MOST contributed to the demise of Packard?
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Home away from home
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I have seen a DeSoto salesman's manual from the late 30s in which they give good arguments for buying a DeSoto over other makes.
They point out that DeSoto has a lot more interior room than the comparable Packard, and sells for less money. The end of the sales pitch takes on an almost plaintive tone, as they wonder why so many people buy Packards when DeSoto has so much more to offer - except the Packard name and the Packard grille. Prestige does mean a lot to some people and they will pay for what they perceive as a quality product. The prestige of the high priced Packards rubbed off on the lower priced models and helped sell them. What I am driving at is that building cheaper cars did not kill Packard's reputation but not building more expensive models did. If they had butted heads more successfully with Cadillac in the fifties they not only could have sold a lot of expensive high profit cars, the prestige would have helped sell the cheaper cars. That, plus they fell behind in styling and in not having a V8 engine. They were not backward in any other feature, they had their own automatic trans, power steering, power brakes, air conditioning etc. It was only in the V8 and in styling changes where they dragged their heels. Unfortunately at the time, V8 engines and up to the minute styling were what the buying public demanded.
Posted on: 2013/10/18 13:12
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Re: What SINGLE factor MOST contributed to the demise of Packard?
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Quote:
"...has always been sold at a premium here in the US, above and beyond the costs ..." To sell above the costs is the idea behind selling. To sell always above and beyond the costs contradicts the fundamental principles of market economy. Quote: ...They also leave their cheap, small models at home and only sell the upper tier cars here... I have certain difficulties to use the words "Mercedes" and "cheap" together within one sentence. "At home" means in Germany but in Germany Mercedes is always on top of the price list in every market segment. Quote: "... I believe a big factor driving their mystique here and their sales they are currently enjoying is the fact that the two leading American Luxury brands of the last 40 years, Cadillac and Lincoln ..." Company XYZ isn't successful because of Cadillac, Lincoln or someone else. First and foremost a company is sucessful because of their distinguished accomplishments (products, quality, delivery reliability, art of engineering, price structure, ...). [picture source: National Geographic Magazine Advertisement] Attach file:  (120.33 KB)
Posted on: 2013/10/18 14:02
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The story of ZIS-110, ZIS-115, ZIL-111 & Chaika GAZ-13 on www.guscha.de
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