Evening Star Newspaper, July 12, 1925, Page 7

7\@w- a One-Profit Car THE SUNDAY STAR. WASHINGTON, D. C, JULY 12, 1925—PART 1. in the Quality Field Studebaker has achieved one-profit manufacture in the ¢ iality field. This marks a new era in the automobile industry. Studebaker’s achievement eliminates un- necessary profits running up to $500 on a single car. It banishes double overhead. It results in quantity production of quality cars. It vitally affects pricing by establishing a new criterion of value in the fine-car field. WENTY-FIVE years ago practically all “manufacturers” of automobiles were nothing more than assemblers. They purchased motors, bodies, tops, axles, etc., from parts makers who were the manufacturers in reality. Some few makers maintained shops in which they machined cast- ings and forgings purchased outside. On this basis it was easy to become an auto- mobile “manufacturer,” and more than five hun- dred makes of automobiles have had their day in the American market and disappeared. They are represented only by “orphan cars” with practically no resale value in the hands of the public, Notwithstanding this writing on the wall many manufacturers still assemble their prod- uct, piling profit upon profit for the ultimate purchaser to pay. Each profit which a maker pays to a body builder or parts supplier enters into his costs just as though he had spent the money for steel or plate glass or upholstery. Although it represents no value he not only passes it on to the purchaser but figures his own profit on top of it. Less than a dozen concerns selling automo- biles today can with truth be designated as manufacturers, and less than one-half dozen build their cars completely. All the others buy big important parts of their cars, such as bodies, engines, axles, etc., from other manufacturers. * ok K ok The Ford is a one-profit car and reigns su- preme in its field. In the fine car field Studebaker —and Stude- baker alone — now offers the American public one-profit values. During the past seven years, when demand for automobiles exceeded supply, Studebaker has been plowing earnings back into plants and machinery until we are now able to make this announcement. Foundries, stamping mills, machine shops, are now complete. As finallinks in the chain of one- profit production, the enormous Studebaker body plants have been operating for months at peak capacity. Resources totaling one hundred million dollars are concentrated on the produc- tion of this one-profit car. No other individual manufacturer in the world ‘(except Ford) possesses such facilities for the complete manufacture of automobiles. That is why Studebaker is able to put finer steel, finer wood, finer upholstery, better work- manship, hundreds of thousands of miles of re- serve transportation, into eyery car—yet keep down the price to you. This sound manufacturing principle not only holds down price, but it insures a better car re- gardless of price. The car is not a patchwork, but a unit. The body, for instance, is an integral part of the car, built to conform to a chassis freely designed and engineered for maximum efficiency. Last year at the New York and Chicago auto- mobile shows four well-known automobile manufacturers exhibited coaches mounted with Why Studebaker is the “one-profit” car There are more than 60 makes of passenger cars built in the United States, but very few are manufactured complete in the plants of the producers who sell them. Only 42 build all their own motors—and one of the 42 is Studebaker. Of the 42 which claim to make their own motors many merely machine and assemble the parts made by others. Only 14 of the 42 make the iron castings, stampings and forgings which go into their motors— and one of the 14 is Studebaker. Only 5 make all their own bodies and one of the 5 is Studebaker. Only 3 make all their own springs, steering gear, differentials, gear sets, and clutches—and one of the 3 is Studebaker. Only 2 make all their own motors, bodies, clutches, springs, axles, gear sets, differentials and steering gear. One of these 2 is Studebaker and the other is Ford. * s e . Studebaker has achieved one-profit manufacture without ex- pensive financing, mergers, holding companies, or other agen- cies which create overhead. Studebaker has no bonded debt and no bank loans. The tremendous plants which permit such efficient manufacture of fine cars are the result of 73 years of sound conservative business. The 14,000 stockholders who own this corporation have been content with reasonable re- turns, and earnings have built the solid foundation described on this page. e N N R IO the same body—a body made from the identical dies, jigs and fixtures. Certainly these manu- facturers must have sacrificed engineering ad- vantages in chassis construction to accommo- date this “standardized” coach body built by an outside supplier. And remember that no outside supplier is able to build bodies a whit cheaper than Studebaker with its vast modern plants and tremendous volume. Contrast this with Studebaker, where the en- tire car is designed and built as a unit — and engitieered complete. This construction means (1) longer life—(2) greater comfort in riding— (3) greater freedom from repair expense — (4) greater resale value. Longer life because— all vital units are especially designed to operate in harmony — one with the other. Thus preventing unnecessary wear and tear. Greater riding comfort because — springs and chassis are scientifically designed to function most efficiently with the body also designed and built by Studebaker. Greater freedom from repair expense because— strains and stresses of each moving part are accurately determined before the car is built. Greater resale value because—the tremendous re- serve mileage, the rugged dependability and amazin\g stamina that are built into every Studebaker car cannot be exhausted in years of service. With the advent of this one-profit-one-overhead plan of motor car manufacture, it is folly today to buy a car by the same comparisons you used yesterday. Today you must measure all cars with this ‘“one-profit” Studebaker. ¥ Ok %k X One-fourth of all American passenger cars built today belong in the fine car field—a total of 57 different makes selling above one thousand dollars. In keeping with its history, Studebaker stands defi- nitely to the manufacture of high grade motor cars only. Nothing about a Studebaker is cheap. Studebaker will not compromise on quality in materials or workman- ship. Our plants can produce 160,000 automobiles in a year and there are more than 160,000 purchasers of auto- mobiles each year who demand quality. Studebaker caters to such persons so successfully that of all fine cars sold one in eightis a Studebaker. There are 21 Studebaker body styles available on three different chassis. The Standard Six Models, 113-inch wheelbase, 50 h.p. engine, $1125 to $1650 f.o.b. factory. The Special Six Models, 120-inch wheelbase, 65 h.p. engine, $1450 to $2120 f.0.b. factory. And the Big Six Models, 127-inch wheelbase, 75 h.p. engine, $1875 to $2650 f.o.b. factory. Whether you buy the highest priced or the lowest priced Studebaker you always receive high quality ma- terials, sound engineering design, integrity in workman- ship and the utmost value for the money. And you may buy your Studebaker today with the assurance that’it will not be arbitrarily stigmatized by any act of ours as a “last year’s model.” Instead of spectacular annual announcements of “new yearly models,” Studebaker has adopted the policy of keeping its cars up-to-date in body styles and chassis design every day in the year. Therefore, buy your Stude- baker now! The STUDEBAKER CORPORATION 9f AMERICA