The Studebaker Company Business Analysis

The Studebaker Company was a wagon manufacturer in the late 1800s, but turned into an automotive empire in the first half of the twentieth century. When faced with troubles in the 1950s Studebaker proved its might with great performance and amazing style. The Studebaker company struggled in the 1960s and eventually the company was shut down in 1966. In 1852, On the corner of Michigan and Jefferson Streets In South Bend, IN (“History” 1), brothers Henry and Clement Studebaker opened a small wagon company. They started their business with $68 and two forges. In their first year of production they managed to build two wagons. In 1858, their third brother, John Mohler, moved back from California, where he made wheelbarrows for miners during the gold rush, to join the business. He brought with him an investment of $8,000. The company continued to make wagons, and eventually became the largest wagon manufacturer in the world. (“Studebaker” 1) In 1902, the Studebaker made their first automobile, an electric car (Foster 16), with a top speed of 13 miles per hour and a range of 40 miles between charges (Foster 20), the second of which sold to none other than Thomas Edison (“History” 1). Studebaker began the switch in 1909, when

The “bullet nose” design was created by Bob Bourke. His superiors told him to make the car “look like zee airplane” (Foster 67). Again, in 1951, Studebaker brought a change to the company introducing its new V8. Studebaker merged with another automobile manufacturer, Packard, in 1954. This relationship lasted until 1958, when the Packard name was dropped permanently because it was said to bring a bad reputation to the Studebaker company. Sales dropped while the company was partnered with Packard. To bring back sales, Studebaker released the new Lark. Sales once again increased, but only for a short time. (“History”