Jeep at Any Price

Russians used them to whip artillery to the Stalingrad front to crush Nazi tank attacks. British used them to scout, fight and pursue Rommel 2,000 miles. U.S. troops had one waiting for President Roosevelt at Casablanca. Everywhere the tough, square, squat jeeps are bouncing the backsides of the United Nations. Potentates and savages ride jeeps; soldiers regard them fondly, pat their rugged sides. But the fondest pats of all come from Willys-Overland Motors, Inc., foster parent of the jeep. To Willys the jeep is a plug-ugly duckling who laid a golden egg.

Back in 1933, Willys nose-dived into receivership. In 1939 tall, round-faced, 200-lb. Joseph Washington Frazer came to Willys as president and general manager. To Joe Frazer the auto business was old stuff. At 20 he left Yale to take a mechanic's job with Packard Motor Car Co. at 16-c- an hour. He wanted to be in a business "where everything moved." One of the fastest movers was Joe Frazer. He left Packard for General Motors, switched to Chevrolet, left to form the Pierce Arrow Finance Co., settled down for a long stay with Chrysler Corp. But Joe Frazer had always hankered to run his own auto company, build his own car.

At Willys he borrowed fresh capital, rebuilt his dealer organization. In 1939, Willys lost $1,862,232, in 1940 another $873,115. Then, when Army Quartermaster Corps cast about for a midget reconnaissance car, Joe Frazer saw his chance to cash in on Willys' small-car making. By sweating his engineers and production men Joe Frazer soon had the joy of seeing the Willys car became the Army standard jeep.

Cropper for Frazer. The jeep helped tug Willys into the profit column in '41 for the first time in four years. With 70% of its dollar volume in jeeps in '42, Willys totted up $1,265,399 in net profits, boosted its net to $1,347,949 for the fiscal six months ending last March 31.

With an eye on the postwar world (and the jeep-conscious soldiers who will buy cars) Joe Frazer had tried--by splashy ads--to make Willys and jeep synonymous. For the first time on his jeep joy ride, Joe Frazer came a cropper. The Federal Trade Commission issued a complaint against Willys. (The complainant was not revealed, but the complaint alleged that the jeep idea was originated by the American Bantam Car Co.) Willys was charged with misrepresentation in claiming that it created and perfected the jeep, in cooperation with the Quartermaster Corps.

Facts of Jeepery. Neither Willys nor Bantam created and developed the jeep by themselves. Bulk of this honor should rightfully go to the Army. Interested in developing a small car to replace motorcycles for reconnaissance, the Army purchased an Austin car to experiment with in 1933, continued experiments with a Bantam. Having determined that it wanted a 1,300-lb. car, the Army sent specifications to 135 manufacturers. Bantam and Willys were the only two who answered, and Bantam received an order for 70 vehicles. The cars were promising but too light, so the Army increased the weight to about 2,200 lb., asked Bantam. Willys and Ford Motor Co. to build 1.500 each of the new cars. The Willys design was selected and the company was given a fat order for 16,000. To assure two sources of supply, Willys was instructed to turn its design over to Ford for manufacture. Bantam dropped out.

Joe Frazer and Willys have gone on advertising, unabashed by the FTC order, which they answered last week. They denied that they had violated any FTC provisions in advertising, stated that the Willys ads had been submitted to the Army before publication and insisted that Willys "in cooperation . . . with the Quartermaster Corps originated the design for the jeep and did not copy it from . . . any other manufacturer." Hearings by FTC will be held later. But Joe Frazer and Willys regard the matter as academic--the Willys-designed jeep is the only one being produced in the U.S. today.

This file is automatically generated by a robot program, so reader's discretion is required.