Studebaker-Worthington, Inc. - 1970's dated Automotive Stock Certificate

Automotive Stock. Modern female figure vignette seated with a globe to one side. Available in Blue, Red, Green, Brown or Orange. Please specify color.

Studebaker-Worthington, a diversified American manufacturer, was formed in 1967 through the merger of Studebaker, Wagner Electric, and Worthington Corporation. In 1979, McGraw-Edison acquired the company. Founded in 1852, Studebaker initially began as a wagon manufacturer before entering the automobile business in the early 1900s. However, since the early 1950s, sales had been steadily declining, leading to a lack of funds for developing new models.

In December 1963, Randolph H. Guthrie, the chairman of Studebaker, announced the closure of the company’s automobile factory in South Bend, Indiana, where it had produced cars for 50 years. Despite this, Studebaker would continue to manufacture cars in Hamilton, Ontario. In 1965, auto sales were slightly less than $45 million.

On March 4, 1966, Studebaker announced the termination of automobile production after producing less than 9,000 1966 models. The decision was attributed to “heavy and irreversible losses” in the automobile division.

Despite the automobile sales decline, Studebaker’s business results for 1966 were impressive. Total sales, excluding automobile sales, amounted to $172 million. Automobile sales for 1965 had been slightly less than $45 million. Notably, the company’s net income for 1966 was $16.4 million, significantly higher than the previous year. This profitability, coupled with tax loss carry-forwards, made Studebaker an attractive target for a takeover.

To further strengthen its position, Studebaker divested some unprofitable businesses. Among the remaining divisions, Clarke Floor Machines, Gravely Tractor, Schaefer Chemical Compounds (later to become STP Corporation), and Onan emerged as the most profitable.