ow of 4,515 cars in 1958 as the company tried to keep pace with Ford, General Motors, and Chrysler. South Bend executives bought the ailing Packard Motor Car Company in 1955 for its high-end luxury automobile to go along with the entry-level Studebaker, but the purchase of Packard was a money pit for Studebaker, and the once-proud marque was dropped in 1958.
In 1959 Studebaker introduced the Lark, a smaller and more economical car than most others of the day, and a year before the Big Three would bring out the Corvair, Valiant, and Falcon compacts. The Lark was a great success and gave the company some hope. It continued to build its larger Hawks, and introduced the trend-setting Avanti, but sales still continued to slide.
Hamilton-produced cars were virtually identical to those built in South Bend, using six- and eight-cylinder engines imported from the U.S. There were some variations in interior materials and trim, as well as paint colours. As at other U.S.-based auto companies, top-level models such as convertibles were assembled and imported from the U.S. Hamilton did not build any Packards or Avantis, and few Hawks. Truck production in Hamilton was terminated in 1955.
Studebaker was applauded in 1960 for its contribution to the economy after producing cars in Canada for 50 years.
“The retail value of Studebaker products from the Hamilton plant alone amounts to a 12-year total of $25,000,000, but statistics tell little by themselves of what the automotive industry has meant to Canada,” noted a newspaper article in October 1960.
But despite the success of the Lark, and the innovative Avanti, South Bend could not produce enough cars to remain viable, and Studebaker’s U.S. assembly lines were halted at the end of 1963.
“Studebaker made a lot of money in 1959 with the Lark,” said Stu Chapman, Studebaker’s former advertising manager for Canada in an interview in 1979. “Then they diversified, buying STP, Trans International Airlines, and a few other companies. Their first loyalty was to the stockholders so there was a tremendous diversification. In hindsight, if they had put that money back into the car the company might have been saved. By 1962 the operation was doomed.”
The Hamilton plant was going strong in the early 1960s, putting out Commander and Daytona sedans and station wagons. In 1964 over 17,000 cars were built, and output increased to over 18,500 in 1965.
But in March 1966, with only 2,045 cars built that year, Studebaker Canada ceased operations, and 900 employees had to find new jobs. The last car produced, a turquoise Lark Cruiser four-door sedan, rolled off the line on the morning of March 17.
Hamilton did not have engine or foundry facilities, and when the final Studebaker engines were shipped from South Bend late in 1964, management in Hamilton had to find something to power their cars.
Former Studebaker of Canada president Gordon Grundy worked with General Motors to supply engines for his cars, but the costs of the 194-cubic inch (3.17-litre) six and 283-cubic inch (4.63-litre) V8 from the GM engine facility in nearby St. Catharines were greater than expected, which did not help the bottom line for the Canadian operation.
Today the Studebaker has a large and devoted following, and owners of the Hamilton-built cars are especially proud of their Studes produced by this feisty independent, which in its last years could not compete with the larger domestic automakers or with the influx of foreign autos.