Description

  • In the early 1930s, Studebaker products spanned the entire price range form lowest to highest.
  • The Great Depression impacted sales and profits dramatically.
  • This 1933 Studebaker was built when Studebaker went into receivership.
  • By 1935 the company was out of the receiver’s hands.

Story

Story

The advent of the Great Depression in 1929 resulted in an alarming drop in Studebaker sales and profits in 1930.  Apart from the unfortunate Depression, Studebaker stood in a powerful competitive position in the early 1930s. Acquisition of Pierce-Arrow in 1928, and production of the Rockne starting in late 1931, gave the Studebaker Company a lineup of products spanning the entire price range from lowest (Rockne from $585) to highest (Pierce-Arrow truck up to $7,000).

For 1933, four Studebaker models were presented; the President, the Speedway President, the Commander and the Studebaker Six.  This car is a Studebaker Six, model 56 and new features included downdraft carburetion, automatic choke, and vacuum-boosted power brakes.  Slightly more than 6,500 model 56s were built and as sales continued to dwindle, Studebaker found itself in serious trouble.  Liabilities exceeded assets by $15 million and Studebaker management sought a solution by merging with the White Motor Company of Cleveland, Ohio, which had substantial reserves.  White’s bankers opposed the deal and, in March 1933, Studebaker went into receivership.  The Studebaker Corporation was taken over by Harold Vance and Paul Hoffman and by March 1935, the company was out of the receiver’s hands.

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