Studebaker Canada

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End of the line

On August 18, 1948, surrounded by more than 400 employees and a battery of reporters, the first vehicle, a blue Champion four-door sedan, rolled off the Studebaker assembly line. The company was located in the former Otis-Fenson military weapons factory off Burlington Street East, which was built in 1941. The Indiana-based Studebaker was looking for a Canadian site and settled on Hamilton because of its steel industry. The company was known for making automotive innovations and building solid distinctive cars. 1950 was its best year but the descent was quick. By 1954, Studebaker was in the red and merging with Packard, another falling car manufacturer. In 1963, the company moved its entire car operations to Hamilton. The Canadian car side had always been a money-maker and Studebaker was looking to curtail disastrous losses. That took the plant from a single to double shift - 48 to 96 cars daily. The last car to roll off the line was a turquoise Lark Cruiser on March 17, 1966. Studebaker officially shut down the next day. It was terrible news for the 700 workers who had formed a true family at the company, known for its employee parties and day trips. It was a huge blow to the city, too. Studebaker was Hamilton's 10th largest employer at the time.

The old Studebaker plant was later re-acquired by Otis Elevators, which used the building until 1987. It was scheduled for demolition in 2012 to make way for a new industrial estate.

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On this day in 1933, American automaker Studebaker, then heavily in debt, goes into receivership. The company’s president, Albert Erskine, resigned and later that year committed suicide. Studebaker eventually rebounded from its financial troubles, only to shut down the assembly line and transition out of the automobile business in 1966.

1933
March 18
Studebaker goes bankrupt

On this day in 1933, American automaker Studebaker, then heavily in debt, goes into receivership. The company’s president, Albert Erskine, resigned and later that year committed suicide. Studebaker eventually rebounded from its financial troubles, only to shut down the assembly line and transition out of the automobile business in 1966.

The origins of the Studebaker Corporation date back to 1852, when brothers Henry and Clement Studebaker opened a blacksmith shop in South Bend, Indiana. Studebaker eventually became a leading manufacturer of horse-drawn wagons and supplied wagons to the U.S. Army during the Civil War. Around the turn of the century, the company entered America’s burgeoning auto industry, launching an electric car in 1902 and a gas-powered vehicle two years later that was marketed under the name Studebaker-Garford. After partnering with other automakers, Studebaker began selling gas-powered cars under its own name in 1913, while continuing to make wagons until 1920.

Albert Erskine (1871–1933) assumed the top job at Studebaker in 1915. Under his leadership, the company acquired luxury automaker Pierce-Arrow in the late 1920s and launched the affordably priced but short-lived Erskine and Rockne lines (the latter named for the famous University of Notre Dame football coach: Before his death in a plane crash in 1931, Studebaker paid Rockne to give talks at auto conventions and dealership events). During the early 1930s, Studebaker was hit hard by the Great Depression and in March 1933 it was forced into bankruptcy. (In April 2009, Chrysler became the first major American automaker since Studebaker to declare bankruptcy.) Erskine, who was saddled with personal debt and health problems, killed himself on July 1, 1933.

New management got the company back on track, dropping the Rockne brand in July 1933 and selling Pierce-Arrow, among other consolidation moves. In January 1935, the new Studebaker Corporation was incorporated. In the late 1930s, the French-born industrial designer Raymond Loewy began working for Studebaker: There, he created iconic and popular models including the bullet-nosed 1953 Starliner and Starlight coupes and the 1963 Avanti sports coupe.

By the mid-1950s, Studebaker, which didn’t have the resources of its Big Three competitors, had merged with automaker Packard and was again facing financial troubles. By the late 1950s, the Packard brand was dropped. In December 1963, Studebaker shuttered its South Bend plant, ending the production of its cars and trucks in America. The company’s Hamilton, Ontario, facilities remained in operation until March 1966, when Studebaker shut its doors for the final time after 114 years in business.