President, CEO & Chairman June 2008 Message

Disclaimer:
The Studebaker brand name is an American Icon that began in 1852 as the Studebaker brothers made wagons and later evolved into a world-class auto manufacturer around 1900. In 1966 the automaker known as Studebaker went out of business and closed its doors. After twenty years the tradename was considered abandoned so everything fell into public domain (Studebaker, Packard and Avanti). Packard and Avanti got picked up first, and in 2002 Tom Raines picked up the Studebaker brand name, thereby creating the modern day company known as Studebaker Motor Company Inc. I want to make it clear that today’s Studebaker Motor Company is not the same vehicle auto manufacturing company of the 1960’s. We are a totally new company. Tom Raines and I have registered our vehicle names with the SAE, the Department of Transportation and other government entities, applied for the trademark/tradename Studebaker (motor scooters, motorcycles, automobiles, pickups, after market parts, apparel, accessories, and more), I expect to enter the North American motor scooter market by summer of 2009 (as Studebaker), followed by gas or diesel-electric series hybrid vehicle market by fall of 2013 (as Studebaker). Any use of the Studebaker tradename, trademark or brand name without the explicit written consent of Ric Reed and Studebaker Motor Company Inc is strictly forbidden.

Why did I decide to get into the car business? And why the Studebaker brand name…

Sometime in the spring of 2005, my daughter Katie, who was about five years old at the time, was riding in the back seat of my car and said something quite profound to me. She said, “Daddy, what are you going to do to help save the world?” (interesting question, I thought, coming from a five year old). It seem Katie and mommy had watched a TV show about auto pollution, and Katie was having a hard time thinking about how the Ozone Layer was tearing and the sun was going to destroy all life unless her daddy did something to stop this. She also told me that when she grows up there would be no more air to breath unless I did something to solve that problem too, (guess she really puts a lot of stock in her daddy). What I did next was call Tom Raines, and the rest is history. 

Americans rediscover the need to visit the ideology of the electric car. Many reasons really, one deals with the negative effects of auto pollution and green house gases, another deals with high costs of getting from point A to point B, while another deals with depleting resources. Nevertheless, electric cars are making a comeback, starting with gas or diesel-electric hybrids, and Studebaker Motor Company wants to be a part of this cycle. We have design ideas on the drawing boards, and look forward to their development.

Mid January 2005 I was introduced to Tom Raines, who was (at that time) four years into the challenge of bringing back the Studebaker brand name. Apparently, Tom discovered the brand name was abandoned and in public domain, and was therefore available to anyone. Tom contacted the necessary government entities, applied for, and was given manufacturing and distribution rights for the brand name Studebaker, and all future vehicles, trucks, motorcycles, scooters, wagons, carriages, and many other things that would require vehicle identification numbers, and things that would not require vehicle identification numbers. Together, Tom and I filed for trademark and copyrights of the Studebaker brand name, and anything associated with vehicle, motorcycle and scooter manufacturing.

To our credit, members of the Studebaker family have contacted us and wish us well, give us approval and ask if they can work for us once things get further along. Also 2008 is the Forty First birthday of the Studebaker National Museum. It was in 1977 when the City of South Bend began displaying the Studebaker vehicle collection. Twenty-three years (1985) ago the Studebaker National Museum was incorporated. Tom and I have discussed the probability of donating one vehicle a year to the Studebaker National Museum, as to continue the brand name for historical value. We have also discussed the probability of Studebaker Motor Company co-sponsoring their annual golf tournament once things get settled. Along the same line, we have been in contact with some of various Studebaker auto and driving clubs and look forward to building relationships with these historic clubs.

Since Studebaker is a start-up company, which requires a lot of time and money, and we have yet to receive funding, I have not given up my day job as a commercial real estate broker in metro Denver. Mostly I sell business opportunities like motels, restaurants, truck stops, gas stations, convenience stores and liquor stores, see www.ricreedrealty.com.

My intentions are to continue visiting and learning first-hand from experienced car people who are in the industry now, or recently retired from the Detroit auto industry. This past year I attended the SEMA convention held in Las Vegas, Nevada (October 30-November 2) and was amazed at the number of display booths, attendees, and manufacturers from all over the globe, mostly US and China, but still, impressive representation from other countries.

Nearly everyone likes the idea that Studebaker is attempting a comeback. You’d think that only the older folks remember Studebaker, not so. I discovered members of younger generations know the Studebaker brand name. It’s really amazing! I met hundreds of grown men and women who shed tears when they saw my name badge ‘Studebaker Motor Company.’ These wonderful emotions mirror the emotions I witnessed from people in Detroit and all over southwest United States this last year (I took several road trips) (wearing my Studebaker shirt and spreading the word of Studebaker’s plan to come back). I wanted to see what people want. I found out… 

My former partner (Tom Raines) has the gift of gabbiness (so to speak) and arranged for me to meet with some very important people in the auto industry while I was at the SEMA show. I met with car designers, engineers, aluminum panel makers, parts manufacturers and distributors, an American race winner, vehicle manufacturers, acoustic specialists, engine manufacturers, carpet manufactures, and more. For sure, my Rolodex has definitely increased!

Because of relationships formed at SEMA, a few weeks after the show I traveled to Detroit and met with SuperForm USA, Tesla Motors, Mayflower/CVT, GVS Corp. I’m also developing a working relationship with Panoz Auto, whom I respect as a niche automaker. Many discussions of vehicle platforming, and other discussions pertaining to advantages and disadvantages of SMC’s versus aluminum skins for prospective gas-electric and diesel-electric hybrid concept-to-production cars. I've met, and continue to meet with engineering firms to discuss the relative feasibility and costs of concept design, engineering, prototyping, safety and crash testing, EPA certifications of the Studebaker Lark within a reasonable time period (plans of limited production in North America the first year or so). This will be a small, yet roomy gas or diesel-electric series hybrid sedan. I don’t know the base retail price yet, however, I’m in discussions with a newly formed green platform manufacturing company in Detroit, and should zero in on costs relatively soon.

If you haven’t read the Overview page yet, please do so, as it briefly explains my plans to make scooters in Step One, then progress to the Studebaker Lark in Steps Two and Three, followed by the Hawk, President and Champ in Steps Four and Five. If you have comments or ideas that Studebaker may benefit from, contact reed@studebakermotorcompany.com.
Cordially,

Ric W. Reed
President, CEO & Chairman
Studebaker Motor Company Inc
7155 Newton Street, suite 4, Westminster, Colorado 80030 
STUDEBAKER MOTOR COMPANY, "A Time Honored Name, A New Company for the Future"