Saturday, April 23, 2016

Where Did Great American Cars Go? Into the Bellies of the Big 3 Auto Makers

People LOVE classic & antique car shows!  
     Hardly anyone can figure out how such beautifully designed machines--engineering marvels of future-looking optimism--got wiped out within merely one human generation.  Especially when you consider that post-WWII America "took" all of the British Empire's trading ports, had a hugely increased Gross Domestic Product (largest in the world), and possessed a muscled-up economy/manufacturing capacity.
     Well, the answer is simple.
     It's the same reason why a hugely profitable company (such as Dolce & Gabanna or Verizon) avoids paying taxes or decides to layoff base-level employees, rather than improve society.  
     
     At the dawn of the automotive industry, the Big Three emerged as "bosses" of the playing field: Ford (who invented the assembly line), General Motors, and Chrysler.  Their flaws were seen early on.  GM is notorious for Rockefeller-like (monied hands in every policy-makers' pockets) corruption.  (GM president, Charles Wilson, simultaneously served as US Secretary of Defense, famously saying, "What's good for the country is good for General Motors and vice versa").  Henry Ford was a power-hungry egotist (learn about his Company Town) who's ONLY good car design was the Model T (the rest came from his browbeaten son, Edsel, until Edsel's death in 1943).  Extremely/publicly anti-Semitic, Ford seemed to regret his push into motorization, as evident by his fanatical creation of Greenfield Village, MI, an entirely historic replication of 18th century Americana.  Chrysler was so shoddy that its first foray into modernism, the Airflow, was a dud because of badly-made machinery inside its ground-breakingly beautiful facade.  
     Basically, those 3 pushed all other kids off the playground, until only they stood alone: ignorant and priggishly arrogant. Without competition, they downgraded their offerings, while increasing their prices.  With government contracts for taxis, military and police/fire vehicles, they were undeservedly assured a steady income.  That "income" essentially came from the taxpayers, who were being price-gouged for inferior cars that needed ever-costlier / frequent repairs, while the crappy cars polluted more smog and gas-guzzled (another cost for owners).
     Their dim-witted descendants drove the 3 companies down from lofty potential.  Unless you consider that perhaps the Big Three never intended to improve consumers' lives.  Maybe they only wanted to improve oil producers' lives, or the profit margins of spare parts suppliers.  Yet all along, they waved American flags at their dealership and told customers to "buy American"... even though their profits went overseas (just like their manufacturing plants.  See Detroit nowadays). Gullible and uneducated Americans (which hasn't changed much) believed them.  Until automakers like Volkswagen  and Nissan came along and provided greatly efficient, high-performing vehicles that municipalities and drivers clamored for!
     Imagine how far America might've gone if the real wizards of innovation had been allowed to produce what their genius created!  (Especially if Tesla's "free energy" had been used to power them).  
     Actually, electric cars were the frontrunner of the infantile auto industry.  In fact, the first NYC taxicab company was Samuel's Electric Carriage & Wagon Co. (1897).  



Quieter, non-pollutive, and less messy... they were great.  By 1899, they operated 100 such cabs, and by 1900, they operated 1,000.  I'm sure that ConEdison loved their electric bill!  



     But, it didn't make the oil/gasoline (Rockefeller fortune) happy.  Nor did it thrill big auto makers using gas engines.  Not surprisingly, a mysterious 1907 fire burned down the largest garage for NYC electric taxis.  At the same time, the Financial Panic of 1907 wiped out the company.  (The Panic was also used by Rockefeller's friend, JPMorgan, to takeover Tennessee Coal, Iron & Railroad Co., despite the new anti-trust laws.  Morgan merged it with his US Steel Corp, which he'd recently bought from weakling Andrew Carnegie.  Rockefeller's father-in-law, Senator Aldrich, used the Panic to institute the still privately-run Federal Reserve upon our nation... which Morgan helped design).  
     For some inexplicable reason--despite electric cars' superiority--gasoline cars dominated afterward.  For a century, consumers paid more and more for always-rising oil / gasoline prices.  Possibilities for electric cars remained "shelved" / locked away (like in the 1980 film "The Formula") until only recently.




     Recently, Charles Sorrel wrote about Sweden's eHighway for trucks.  One 60-ton truck running on electricity saves $83,000 for every 124,000 miles driven, and its efficiency is twice that of a gasoline engine.  What a shame its technology was stifled due to the greed of oil cartels.  Equally unfortunate was President Nixon's secret deal with Saudis, giving them boundless entry into American ownership, in exchange for their oil.  Greed is what killed our great cars, too.

     Great pioneering American companies like Duesneberg and Packard made the BEST cars in the country!  Perfectly styled, perfectly engineered, perfectly crafted--with years of dependable continuity.  Far above Lincoln and Cadillac (which--even today--are below par... yet they linger on the "luxury" market without something better replacing them).  They were (and still are) adored by buyers!  Yet, they're gone.  Nothing about them was implemented into further vehicles (Packard had the best chassis in the industry); yet the whole artistry was discarded.  Instead of using those good ideas, the Big 3 increasingly shared components with lesser car divisions.  (That kept "parts contracts" flush with cash, and maintained profits from "service/repair centers").

DUESENBERG
     When was the last time you heard of foreign dignitaries or royalty wanting to own an American luxury car?  (Cadillac?  Lincoln?  Haha!)  Built entirely by hand, Duesenbergs were touted as "the World's Finest Motorcars", bought by movie stars, kings, sultans, mobsters, dukes, robber-barons, and emperors around the globe.  Howard Hughes drove them.  




     Unlike Caddy or Linc, a Duesy had won the French Grand Prix of 1921.  It raced admirably in the Indianapolis 500 (as early as 1914!)  That's more like Porsche or Bugatti!  Yet, it was still a luxury coupe/sedan/limousine maker!  




     The Dusenberg brothers were world-class engineers (also of aviation & marine engines), but poor businessmen.  They were the first to introduce Single Overhead Camshafts, 4-valve cylinders, Superchargers, and 4-wheel hydraulic brakes.  (They could've made a fortune on the brakes, if they had got a patent).  In 1926, Cord Motors bought Duesenberg--which had horsepower at that time of 265 and top speed of 119mph!    They also invented dashboard indicator lights.  All the coachwork was custom-designed for each customer (even better than a Maybach).  


     World War II signaled the end of Duesenberg, as its parent company's finances fell apart.  Nobody sought to salvage the strength of engineering, innovation, care, handiwork or passion.

CORD
The Cord Corporation became the parent company for Duesenberg and Auburn.  Noted for innovative technology and streamlined design, its philosophy was different than the Big Three.  Cord invented Front-wheel drive, recessed  (hidden) headlights, independent suspension, and electric shifting/semi-automatic transmission.  



In the late 1930s, amidst allegations of financial fraud (you'll see this pattern continue), the company collapsed.  Consumer enthusiasm had cooled, and its dealer base had withdrawn.  With it, went the future of Auburn cars.  However, its owner, E.L. Cord continued to earn millions in other ventures.

PACKARD
Every car lover knows Packards!  Whether a two-door convertible or a touring car, they were excellence on wheels.  Founded in 1899, they pioneered and accelerated through the first World War, 1920s, and Great Depression.  They zoomed through the 1930s.  They bucked up and kept going during World War II.







     Post-war Packard was mismanaged into oblivion, by a company president, named George Christopher... who had previously worked for General Motors.  Hmmm.
     [We know that the Big Three bullies bulldozed any competition that made them look bad.  Critics had favored the 1941 Packard Clipper more than the Lincoln Zephyr [owned by Ford], which they insultingly called a "Ford and a half".  With huge ad campaigns & product placement, GM was trying to push Cadillacs upon Americans as the nation's premier luxury car... yet it paled in comparison to Duesenberg or Packard.  Caddy's $3,100 Sixty Special was inferior to Packard's more sumptuously trimmed Super Clipper, for the same price.]
     So, when auto makers finally resumed car production in 1946 (production halted during the war as they strictly made weapons--and the Big 3 ingratiated themselves with the political machine), Christopher insisted that Packard make only mid-priced cars.  Thus, as consumers clamored for new  (and luxury) cars, Packard lost out because it was merely selling mid-level models.  Each sale was far less than it could've been.  Without high-end cars, Packard missed higher profit margins.  Christopher was quoted, referring to luxury Packards as "that goddamn senior stuff".  Doesn't seem like the right fit for Packard's vision/mission statement, does it?
     I have no idea why Packard ever hired a guy from GM?  Even in that era, GM's Buick-Oldsmobile-Pontiac division was unflatteringly called a mere "bucket mill".  Perhaps, just as banks or Monsanto send "former employees" into government roles--to manipulate things in their favor--then rehire them (like a spy), the Big Three did the same?  
     Thus, in 1946, Packard built almost as many Cadillacs that GM did.  Except they were the cheaper models, so Packard made half the profits that GM did.  It really seems like GM snuck in a "Trojan horse" to guide Packard into making a wrong turn.  Car buyers COULDN'T buy high-end Packards--even if they wanted to.  Many went to GM, instead.
      Even by 1948, Christopher still confined Packard production to the medium-price field... allowing the Big Three to gobble up the high-profit field.  Hence, high-end Packard production dwindled from 20% to 11%, trailing Cadillac by tens of thousands.  The public was being starved of Packards.  Finally, they fired Christopher.  A later president, James Nance, said, "he handed the luxury car market to Cadillac on a silver platter."  Hmmm.
     In 1954, Packard combined with STUDEBAKER (another auto maker with upstanding roots).  Within months, Studebaker's president died.  Then, Packard saw how much Studebaker lied about its bad financial condition!  In 1956, Packard's president resigned in frustration.  At that point, the two companies were mismanaged into oblivion, and the prestigious Packard name died.  

TUCKER




     Have you heard of the record-breaking "new" car of 1948: the Tucker?  Probably not, which--considering all it pioneered for the auto industry--is startling... but typically not surprising.  Preston Tucker designed race cars.  His famous "Tucker Turret" was used by the U.S. military on vehicles and planes in WWII.  Key elements of the "Tucker Tiger" combat truck went into the creation of the first Jeep (an astronomically powerful & tough all-terain vehicle that helped win the war).  Seeing opportunities for better cars in post-war America, Tucker desired a safer one, with never-before-seen innovative features and sleek modern design.  He called it the "Tucker Torpedo", but soon chose the more peaceful-sounding, "Tucker '48".
     A 1946 Science Illustrated article shows his futuristic car: hydraulic drive system, 3 headlights, the center one turned with the steering wheel (BMW only re-introduced that 3 years ago), seatbelts, a horizontal taillight bar, a padded dashboard, independent springless suspension, a roll bar within the roof, a chassis that protected against side-impact, a laminated windshield designed to pop out during an accident, and a helicopter-worthy engine... in the back (like Porsche).  NONE of those things--which we see in cars today--had been envisioned for cars, back then.    



     Tucker's genius and desire to offer a great vehicle obviously ruffled the fat feathers of auto companies that preferred to sell crap at high prices.  Howard Hughes--suffering bullying from the Big Three Movie Studios and from PanAm--gave Tucker some engineering tips.
     Tucker hired famous stylist, Alex Tremulis, who'd designed for some of the best/most gorgeous cars: Auburn, Cord and Duesenberg.  (See?  HERE was someone who WAS using the ideas of the lost great car companies).  




     A great salesman, Tucker pitched a media campaign that drew a frenzy of consumer anticipation.  He established dealer connections around the world!  From the War Assets Administration, he obtained the largest factory in the world, the 475-acre Dodge Chicago Aircraft Engine Plant.  His car engine wouldn't need a camshaft or transmission.  (I'm sure that worried the "established" parts suppliers for such industry-standard items).  He intended to use self-sealing tubeless tires.  (Uh-oh, there's another big industry--with service center across the nation--that he pissed off).  He was thinking long term and brining a tremendous new product to fix a consumer need.
     What was his mistake?  He hired Hanson Brown, a former Vice President of General Motors, and Tucker's VP of manufacturing was Lee Treese, formerly of Ford (Fix Or Repair Daily).  Simultaneously, an anonymous smear campaign started on his not-yet-sold cars.  The previously helpful WAA rejected his bids for steel mills.  The Securities & Exchange Commission--that ignores/condones financial fraud nowadays--hindered Tucker.  Tucker never took federal money (unlike the Big 3 in the 1970s and 2000s), but was still put under an SEC investigation.  Tucker's own Board Chairman (son to the patent lawyer for the Wright Brothers) brought in the SEC, accusing Tucker of fraud in 1949.  On the same day, the Tucker factory was forcibly closed.  Meanwhile, federal agencies (pushed by some unseen force) brought Tucker to court battles and accused him of never intending to produce cars.  ??!!  They told the public that he was a scam artist.  [What a way to be "railroaded"!]  Meanwhile, the media smear campaign made wildly-false statements about the Tucker car.  (It reminds me of the media smear campaign in the 1939 film, "Mr. Smith Goes to Washington" or the false irrationalities spewed by modern-day media--which were joked about on the 2012 TV show, "The Newsroom".)
     [It's similar to the 2004 film "The Aviator" about Howard Hughes, where his fearful 1940s-era competitors create false legal charges and a media smear campaign.  Except, Hughes was fabulously wealthy and withstood the onslaught and continued his efforts after his innocence was proved].
     Only 37 Tucker cars had been built in the vast factory.  Hundreds of unpaid-but-loyal employees returned and finished 13 more--from spare parts--for a total of 50.  How patriotic?  
Thankfully, by early 1950, the trial turned in Tucker's favor; the (finally educated) jury acquitted him of all charges.  By then, the Tucker Corporation was dead.  As the  1988 movie, "Tucker: The Man & His Dream" said, "He made the cars too good."  
     Tucker Corporation assets were sold at auction in Chicago.  Ford bought the building that had housed the Tucker Corporation.  Peter Dun, of Dun & Bradstreet, bought the rights to the "Tucker" name, succinctly blocking Preston Tucker from naming any other car after himself.
     Interestingly, Otto Kerner, the US Attorney who investigated Tucker for fraud became the first Federal appellate judge to be jailed--for stock fraud.  Kerner was convicted on 17 counts of bribery, conspiracy, and perjury!
Sadly, Tucker died at age 53, in 1956.
    If you reread all the amazing features in his cars, you'll realize how many decades passed before his ideas were implemented somewhere.  They were probably only dusted off and used when Asian-made cars finally threatened the Big Three.  But never before that, due to their arrogant uncaring greed.

HUDSON     
1956 also marked the downfall of that upstanding brand.



(It's the first car driven by actor Morgan Freeman in "Driving Miss Daisy").  



(until his boss is peer pressured to buy Cadillacs, which lose luster and become more ugly as years in the movie go on).  
     The 2016 Pixar film "Cars" showed how Hudsons were capable of being race cars.  Doc Hudson was based the 1952 model below.



     In 1939, Hudson was the first car company to hire a female designer!  Its other firsts for the auto industry included: dual brakes, balanced crankshaft, straight-six engine, and a durable/smooth cork clutch system.  By 1957, the company president, George Romney, realized "the only way to compete with the Big Three was to focus on smaller-sized cars."  The decision to retire the brand name was so swift that it caught trade magazines "off guard", who were already showing photographs of next year's model.

     What a shame that victorious post-war American companies couldn't work as a team to build up our country.  Instead, the greedy ones collaborated to ruin the good start-ups and the innovative smaller producers.  As the government (and citizens) idly sat and watched it happen, the greedy companies set about cheapening America: hence "They don't build 'em like they used to."  
     Industry observers of 1949 reported that the future of the car business belonged to the 3 giants.  (What happened to anti-trust legality?)  Henry Ford II dumped tens of thousands of vehicles into the market--at discount prices--to wrestle GM for the title of #1.  GM responded by doing the same.  Such schoolboy maneuvers!  (Exactly as I described earlier).  No concern for quality, consumer satisfaction, mechanical improvement, or betterment of society.
Independent auto-makers couldn't afford the unit costs, tool amortization, or "suddenly-necessary" TV advertising, to fend off the Big 3.    
     The American public was left with chrome-overloaded gas guzzlers that needed repairs repeatedly.  The American public was left with car models that actually degraded in appearance, as years bore on.  










     It wasn't about craftsmanship, great design, inspiring the public, or bettering society.  It was solely about making the most money... and "to hell" with everything else.

     Even efficient "design giant", Mercedes-Benz, couldn't fix "corruptly stubborn" Chrysler.  Buying them in 1998, Mercedes couldn't change them and "spit them back out".  World opinion soured further in 2008, when the Big 3 got $25 billion "federal bailout (taxpayer) money" in 2008--while taxpayers lost jobs/savings/homes.  At the time, the media/citizens/certain politicians were in an uproar:
"There is a delicious irony in seeing private luxury jets flying into Washington, D.C. ($20,000 each roundtrip ride), and people coming off of them with tin cups in their hand, saying that they're going to be trimming down and streamlining their businesses," Rep. Gary Ackerman, D-New York, told the CEOs of Ford, Chrysler and General Motors at a hearing of the House Financial Services Committee.  "It's almost like seeing a guy show up at the soup kitchen in high hat and tuxedo. It kind of makes you a little bit suspicious.  Couldn't you all have downgraded to first class or jet-pooled or something to get here?  It would have at least sent a message."
     Consumers are happy to drive foreign cars that are better-made and look better.  Many foreign companies give things like skylights, navigation, heated seats as "standard equipment", where the Big Three overcharge for those "luxury" amenities--often bundling each into "packages" of other unwanted stuff.  The American consumer is aware of 30 years of statistics that many foreign cars outperform, with less maintenance and more miles-per-gallon.  Ah, if only the big bullies hadn't been allowed to be the only ones left standing.  If only the lofty standards/vision of the "lost"  auto companies had been allowed to contribute to civilization.

This relates to a previous blog entry of mine:
http://halfwindsorfullthrottle.blogspot.com/2014/07/changed-values.html

1 comment:

  1. Thank you very much! I enjoy sharing my thoughts/research/experiences, and I'm glad you enjoyed the way I tell it. Thank you for telling your friends, and I hope you'll keep reading :)

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