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Re: 2nd Round: How the Luxury Market Dominance was Lost
#11
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JWL
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Steve, I think your description is well thought out and written. I would like to re-propose a question I posted earlier: Why did Packard name the restyled 1941 cars "Clipper"?

Was it because they were still making the old style cars and needed to have separate names for the two lines? Were they trying to capture some modern tag for the new style cars? Packard was such a well know and respected name, why take away from this with a new name?

I also think it may have been better for Packard to call the new junior cars introduced in 1935 with some other names other than 120/Six, maybe "Clipper by Packard" would have been a good choice?

Maybe I have answered my own question, but I (and I think others here) would be interested in your opinion.

Happy New Year.

Posted on: 2008/12/31 14:30
We move toward
And make happen
What occupies our mind... (W. Scherer)
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Re: 2nd Round: How the Luxury Market Dominance was Lost
#12
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58L8134
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Hi JW

Thanks for reading my diatribe, glad to have your response.

Since the 120 and 160 models continued in production, it made good sense to establish the Clipper as a separate series; for the public, an easy way to identify the new car.

The Clipper name was used initially to identify the car as a model series, much as Buick used Roadmaster or Chrysler did with New Yorker. So the Clipper was consistent with industry practice. The use of a model name such as Clipper would not detract from the Packard name itself. In the case of the '41 Clipper, the name also identified a specific body design.

Where the confusion develops is immediately for 1942, all series chassis from Six to 180 received bodies with the Clipper styling, diluting the identity of a Clipper with unique style of it's own as a separate model series. The status of the Clipper body design is then analogous to the GM Torpedo C body, a design to be used by various series within each make. This move likely was made in recognition of the great appeal of the new design and a tacit admission the sales appeal of the old body had run its course.

The Clipper name was evocative of the old romantic sailing ships off to exotic foreign lands. In the forties the Clipper name was also on trans-oceanic airlines of the day.

In order to insure the success of the new 120 in '35, the name Packard had to go on it. The financial success of those cars was so critical to the survival for the company no chances could be taken with the market appeal of the car. The Packard name alone sold many cars for them the first few years.

Whether Packard should have used a different make name on succeeding middle-priced cars is tough to answer. Trying to establish another make might have worked, Ford proved it was possible with the Mercury. Close association with Packard would be key to its success in any cases. A new make name as a product of Packard Motorcar Company, brought to market in the postwar years, could have established a volume medium priced car and allowed Packard to move back into the luxury market exclusively.

Thanks again for your interest and comments

Steve

Posted on: 2009/1/1 20:19
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Re: 2nd Round: How the Luxury Market Dominance was Lost
#13
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Packard53
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The only reason that Caddy and Buick were able to stay around during the early 30's of the Great Depression was
CHEVY. Also to some extent Pontiac and Oldsmobile carried GM though the depression.

If it wouldn't have been for the profit GM was making from Chevy through the first part of the great depression Buick would have been gone for sure. GM was going to keep Caddy afloat during those hard times, no matter how much it cost them.


John F. Shireman

Posted on: 2009/1/1 22:48
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Re: 2nd Round: How the Luxury Market Dominance was Lost
#14
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JWL
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Steve, thanks for your thoughts and words. Well put.

Posted on: 2009/1/2 11:31
We move toward
And make happen
What occupies our mind... (W. Scherer)
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Re: 2nd Round: How the Luxury Market Dominance was Lost
#15
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Packard53
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Another reason that helped GM get through the depression that is often overlooked. The DuPont's had a great deal of
money invested in GM stock.

This investment by the DuPont's in GM stock enabled Durant to take control of GM for a second time. When Durant started his wild spending again and running GM into the ground, I think that Sloan was brought in by the Dupont's to get the ship upright again.

John F. Shireman

Posted on: 2009/1/2 20:37
REMEMBERING BRAD BERRY MY PACKARD TEACHER
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Re: 2nd Round: How the Luxury Market Dominance was Lost
#16
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Caribbean
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is it not too late for the government to bailout Packard? everybody else is getting a bailout and the new administration is looking to create new jobs programs?

Posted on: 2009/1/2 20:52
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Re: 2nd Round: How the Luxury Market Dominance was Lost
#17
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HH56
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Maybe not a bad idea. I think East Grand might take all the money allotted for the entire country to get back in shape, but believe GM has one or two factories for sale cheap that might work.

Posted on: 2009/1/2 20:59
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Re: 2nd Round: How the Luxury Market Dominance was Lost
#18
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Rusty O\'Toole
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One thing I am not clear on. When I read a discussion of this kind, it appears that Cadillac beat Packard by cleverly offering cheaper mass produced cars and easy financing to outsell Packard. While Packard foolishly offered cheaper mass produced cars which only cheapened their name and drove away customers.

I don't quite see why using the exact same strategy was brilliant and successful for Cadillac and foolish and destructive for Packard.

One place where Cadillac had the advantage was in advertising and promotion. Somehow over the years Cadillac managed to make theirs the number one name in prestige cars in spite of the fact that they usually had the cheesiest cars and cheesiest customers.

It seems Cadillac concentrated their ads on making Cadillac owners feel special then depended on them to sell their friends. I have heard that this was their strategy, from someone who got it from a Cadillac insider in the early fifties.

Compare Cadillac and Packard ads from the forties and fifties and see which comes across as the prestige leader.

Posted on: 2010/2/15 13:02
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Re: 2nd Round: How the Luxury Market Dominance was Lost
#19
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Owen_Dyneto
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Rusty, not to overlook the one HUGE advantage Cadillac had, they didn't have to make a profit (and quite often didn't) to survive.

Posted on: 2010/2/15 13:09
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Re: 2nd Round: How the Luxury Market Dominance was Lost
#20
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58L8134
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Hi Rusty

"One thing I am not clear on. When I read a discussion of this kind, it appears that Cadillac beat Packard by cleverly offering cheaper mass produced cars and easy financing to outsell Packard. While Packard foolishly offered cheaper mass produced cars which only cheapened their name and drove away customers.

I don't quite see why using the exact same strategy was brilliant and successful for Cadillac and foolish and destructive for Packard
."

On the surface, it looks like the same approach, and while it is similar in many ways, the degree to which each went downmarket differs. Check my posting above to see which market Cadillac exploited and Packard ignored until it was too late.

Steve

Posted on: 2010/2/15 20:01
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