High Cost of Quitting

The price of quitting the auto business came high for the hapless Studebaker Corp. Last week President Byers A. Burlingame reported that closing down its South Bend auto plant (TIME, Dec. 20) cost the company $64 million --for canceling contracts, writing off inventories, paying workers' severance and losses on plant and equipment. Result: after earning $489,500 in 1962, the company rode in with a $16.9 mil lion loss for 1963.

Studebaker, which now makes cars only in Hamilton, Ont., is also trying to sell off its South Bend truck plant.

In the U.S. it will still produce such diverse products as refrigerators, gar den tractors, oil additives, electric generators, also distribute Mercedes-Benz cars. Last year Studebaker's nonautomotive enterprises earned $11 million before taxes and, says Burlingame, will put the onetime carriage maker in the black this year.

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