Studebaker Canada Ltd.
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Studebaker of Canada Ltd. was the name given to Studebaker Corporation's Canadian manufacturing arm.
While Studebaker produced cars in Canada prior to World War II, Studebaker's first modern automobile factory was established at Hamilton, Ontario in 1947, in an anti-aircraft gun plant purchased from the Canadian government. From its opening until December, 1963, the Hamilton plant manufactured automobiles as a satellite facility using engines produced in the United States. Studebaker half-ton pickup trucks were assembled at Hamilton, Ontario, from 1950 through 1955.
Studebaker of Canada and Packard Motor Company of Canada merged in 1954. Packard had ceased Canadian assembly operations in 1939, and the Canadian affiliate was a distribution and administrative organization. Although the 1957 and 1958 Packards were based on Studebaker models, none were assembled in Canada.
On October 28, 1962, Studebaker of Canada acquired the rights to import and market Mercedes-Benz and DKW automobiles in Canada. As in the United States, the Mercedes-Benz line was not sold by all Studebaker dealers as each dealer had to prove they had the resources to market a car in that price class. Studebaker of Canada ended its connection with Mercedes-Benz in 1965.
During the 1963 model year, Studebaker of Canada made some changes to its product mix. In mid-year the Canadian plant began assembly of the Daytona convertible and the Cruiser sedan, both imported to that point. The Studebaker Avanti was never built in Canada and the Canadian firm never offered the mid-1963 Standard series to Canadians. When the 1963 model year came to an end, the Studebaker Gran Turismo Hawk became an imported vehicle.
Following the closure of the South Bend, Indiana factory in late December, 1963, Studebaker shifted all of its production to Hamilton, where it was felt the company could be profitatble on production of around 20,000 units a year. Because of limited plant capacity, the decision was made to focus on the Daytona, Cruiser, Commander and Wagonaire, which were all Lark-type platform variants. Studebaker would not shift production of the Hawk and truck series to Canada, ending their availability. Also not included was the Studebaker Avanti, which was terminated; however the company did realize some revenue on the sale of the rights and tooling to the Avanti to local South Bend entrepreneurs who started up a small production line and restarted low-volume production under the name Avanti II .
For the remainder of the 1964 model year engines continued to be built in South Bend (until the expiration of union contracts at year end), but without casting capabilities in Hamilton, the company shifted to small block Chevrolet V8 and I6 engines for the 1965 model year. The engines were produced by McKinnon Industries, a GM subsidiary located in nearby St. Catharines.
[edit] Importer status
During this period, Studebaker of Canada also imported cars for Volkswagen of Canada, using its status as a Canadian manufacturer to take advantage of lower import duties than a Canadian importer. Studebaker was able to import Volkswagens from Germany and sell them to Volkswagen of Canada at a lower cost to Volkswagen and Studebaker was still able to make $150 on each car imported.
Studebaker of Canada also attempted to import Datsun cars to North America. It was felt a second vehicle for Studebaker dealers would help increase showroom traffic and sales. Studebaker of Canada president, Gordon Grundy, flew to Japan to meet with the heads of Nissan Motor Company, makers of the Datsun. All was going well when management in South Bend ordered Grundy to break off talks with Nissan and approach Toyota instead. Toyota refused to speak with Grundy has he had not approached them first and Nissan would not reopen discussions. The decision to change talks in mid-stream was the result a suggestion from a member of the head office's legal firm, who felt Toyota would be a better choice. In the end, Studebaker had no imported car for its dealers from either manufacturer.
[edit] Marketing and the end of production
Studebaker cars built in Canada were openly marketed there as Studebaker: Canada's Own Car!. In other markets, notably the United States, Studebaker promoted the Common Sense Car. Production of Studebaker cars in Canada increased in 1964 due to the American plant closure, but American sales collapsed. During 1965, even Canadian sales began to decline, both a sign the future was not rosy. Although the 1965 production of 19,435 cars met the announced goal, the reality was that the move to Canada was more a method of gradually phasing out production, rather than a real effort to remain in the auto business.
Grundy approached management in early 1966 seeking funds for a minor 1967 restyle and the associated tooling, but was advised that there would be no 1967 models. The last of the 8,947 1966 models built, and the final Studebaker car, a V8-powered Cruiser four-door sedan, rolled off the Hamilton assembly line on March 16, 1966. Now fully restored, it is on display at the Studebaker National Museum in South Bend, Indiana.
Also see Studebaker.
