The man behind Hudson

Roy Chapin was instrumental in the expansion of the American automobile industry.  

ROY Dikeman Chapin was one of those inexhaustible men who seem to wring 48 hours out of every 24 hour day.

His tragic death from pneumonia in 1936, at the age of 56, ended an utterly amazing and diverse career that spanned the automotive industry, highway development, politics and banking.

Born on February 23, 1880 in Lansing, Michigan, Chapin attended the University of Michigan where he studied business. In 1901 he accepted a position at Olds Motor Works but most of the work was initially menial that had little to do with his areas of expertise. For $35 a month his primary tasks were take publicity photographs, run errands, and file gears. Still, Ransom E. Olds was an excellent teacher and had an eye for recognizing untapped talents. Chapin was an eager and observant student.

During his five years with the company Chapin rose through the ranks, learned about automobile manufacturing, marketing, labour management, financing and distribution. In 1904 he became the company’s national sales manager.

A career changing event for Chapin took place in 1901 when Ransom Olds asked him to drive one of the new curved dash Oldsmobile cars to New York City for the second annual Auto Show. The grueling 820-mile trip took a full week to complete. Rutted, rocky and muddy roads, and in some rural areas a scarcity of gasoline, proved to be major obstacles to overcome.

Still, the trip which proved the mechanical prowess of the car brought much fame and recognition to the “Merry Oldsmobile” which was priced at $650. And this fueled a meteoritic rise in sales from 425 vehicles in 1901 to 2500 in 1902. By 1904, Oldsmobile was the largest manufacturers of automobiles in the United States.

The adventure made Chapin a subject of interest for journalists and provided networking opportunities with manufacturing pioneers. And this adventure also played a pivotal role in his work with the establishment and development of good roads associations that commenced in earnest in 1904. His crowning achievement in this endeavor was an association with Henry B. Joy of the Packard Motor Car Company that spearhead construction of the Lincoln Highway, the nation’s first coast to coast automobile highway.

One of Chapin’s greatest attributes was diplomacy and his ability to move fluidly between competing entities without recrimination or lasting animosity. When the Smith family, majority shareholders in the Olds Motor Works, and the companies’ founder, Ransom E. Olds reached an impasse about what direction to pursue, Chapin maintained a long an amicable friendship with both parties even after Olds left his namesake company and the Smith family promoted him to general manager.   

His diverse contacts in the automotive industry and in media, and skills honed during his tenure at Olds Motor Works were the foundation for his next automotive endeavor, the development of Thomas Detroit. But this as well as his work at Chalmers Detroit were merely a stepping-stone on his path to automotive tycoon.  

In 1909, with the partnership of former Olds Motor Works alumni George Dunham, Roscoe Jackson, and Howard Coffin, and with financing from department store magnate Joseph L. Hudson, Chapin launched his greatest automotive venture to date. The resultant Hudson Motor Company would quickly become an industry leader in technological development, and by 1929, one of the nation’s largest automobile manufacturers.  

Aside from taking an active role in the management, engineering development and marketing of Hudson, Chapin was also serving on the executive committee of the Lincoln Highway Association and writing feature articles about the importance of a nationwide system of all-weather roads and the how the automobile was enhancing American society for numerous publications including the Saturday Evening Post. And he traveled extensively to promote Hudson as well as the work of goods roads associations.

Chapin steered the Hudson company from its infancy, through the post WWI economic recession, and ensured that the company was an industry leader in the areas of production as well as technological development. He also was instrumental in the launch and development of the Hudson Super Six in 1916, and the Essex line that included the industry leading Essex Coach. Edsel Ford noted that the coach transformed the buying habits of the consumer from seasonal to all year round and credited this car for record winter sales throughout the industry.

Few things attest to Chapin’s remarkable ability to maintain long-term relationships with business associates than the one that he shared with the Ford family. With Edsel, he developed a close friendship as well as business relationship and with Henry, he earned a grudging respect. He also retained a friendship with Ransom E. Olds, and a working relationship with Charles Nash, Walter Chrysler, and other leaders in the auto industry.

A blemish on his record for integrity resulted from his association and managerial position with the controversial Guardian Group, a complicated investment vehicle consisting of banks, holding companies, and automotive finance entities established in the mid-1920s. He and others involved in this endeavor included men involved with the direct management of Oldsmobile, General Motors, Chrysler, Ford, Studebaker, and as well as leading Detroit and Chicago banks. There were also questionable political associations.

With the dramatic stock market collapse in October 1929, and economic contraction that commenced in earnest in 1931, the Guardian Group became intertwined with the collapse of banks and resultant of loans, stock dumping, and practices, pushed several automobile manufacturers into receivership or bankruptcy. In 1932, Chapin relinquished his management position at Guardian Group and accepted an offer from President Hoover to fill the vacated position of secretary of commerce. His almost unanimous approval for the position indicates the level of respect he still commanded despite an ongoing investigation of corruption in Guardian Group.  

With the election of President Franklin D. Roosevelt, Chapin returned to Detroit and resumed his managerial position at Hudson, a company on the very brink of collapse. The company’s slide had begun in 1931 as reflected in a loss of almost $2 million and a precipitous 85 percent slide in manufacturing. The red ink continued to flow through 1932 and in 1933. With losses of $4.4 million, suppliers threatening legal action, a bank loan of $8 million overdue, and Commercial Investment Trust hinting it might refuse to further finance Hudson’s new car sales the company was in a precarious position.  

Through Herculean efforts that involved restructuring, extensive international travel to facilitate diverse partnerships, and complicated negotiations with labor as well as banks, Chapin miraculously restored the company to solvency in 1935. This was also the year he resumed his position of spokesman for the auto industry, a position that included representation and lobbying in Washington D.C.

The Chapin story ended abruptly in February of 1936 with the death of an independent thinker of epic proportion. What a man of this vision, of this ambition could have accomplished for Hudson, as well as the nation is left to speculation.  

  Written by Jim Hinckley of jimhinckleysamerica.com

Essex – all about affordability

Originally for budget-minded buyers, designed to compete with Ford and Chevrolet, Essex found great success. This story continues from last week’s ‘Roscoe Jackson – consumed by ambition.’

THE introduction of Essex in 1919 as a separate company that was in essence a lower priced companion model to Hudson left American Motors sited.

Primarily, it was in excellent position to garner a larger share of the market as the economy recovered from the post war slump.

Though priced $US900 more than a Ford, the Essex sold briskly. Further fueling sales was the introduction of a closed sedan with a price of just $US1495. No other manufacturer was offering a closed car at this price.

Essex dealers were encouraged by Hudson to capitalize on the growing reputation for speed and endurance, the unique F head engine, and the familial association with Hudson.

Some ambitious dealers were so inspired by this message they staged speed and endurance tests in demonstrator models with customers on board!

For the abbreviated model year 21,879 cars were sold in 1919. With minor changes to styling, and slight improvements mechanically the Essex remained relatively unchanged until 1924 when the then legendary F-head four-cylinder engine was replaced with an all new L-head six-cylinder.

The Hudson built engine offered features unheard of in a mid-price automobile. Deeper oil trough to improve lubrication for the rear main bearing on steep grades. A fully balanced three bearing crankshaft. Aluminum pistons. Roller valve lifters. Automatic spark advance. A cast enbloc intake manifold. The styling was also all new.

It proved to be a winning combination as 74,523 vehicles were shipped to dealers in 1924. Meanwhile, the parent company, Hudson, was positioning itself for a mid-decade surge with all new models and the introduction of technologically advanced features.

In mid-June 1923, for the 1924 model year. Hudson a fully restyled car with an array of mechanical improvements from engine to suspension. More than 59,000 models sold. The stage was set for Hudson to become a dominant manufacturer.

For calendar year 1925, 269,474 Hudson and Essex automobiles rolled from the factory. This placed Hudson Motor Company in a solid third place position behind Chevrolet and Ford. But this was only the beginning.

With profits exceeding $14.5 million the company initiated aggressive expansion. An all new $3 million body plant was built. An additional $7 million was spent to modernize and expand production, improve the engine casting facility, and develop a training program for dealers and their mechanics. The line between Hudson and Essex was blurred in 1927, but the Essex continued to outsell its parent.

The year 1929 was pivotal for the company and for the world. The boom times of the 1920s were largely fueled by expansive corporate loans and the introduction of consumer financing programs such GMAC.

Still, in rural areas, the post war collapse in agricultural prices had devastated local economies and for most of the decade small town banks failures were a common event. The decline in agricultural prices also resulted in a marked decline in exports to countries such as Australia where wool prices had plummeted.

Through the closing years of the 1920s, Hudson continued to dominate motorsports. And this translated to sales. For 1929 the company set a new sales record with more than 300,00 Essex and Hudson units produced. This as also the year the company dropped the time honored Super Six and began promoting new models as the Greater Hudson.

Marketing touted 64 improvements as well as a long list of new standard options including electric gas and oil gauge, windshield wiper, electrolock anti-theft device.

Essex mirrored Hudson for 1929. Distributors were encouraged to stage well publicised demonstrations that highlighted braking and acceleration. With an improved engine, lower rear axle ratios and all new carburetion, the Essex was also promoted its fuel economy, 20.35 miles per US gallon. All of this marketing was enhanced with the setting of records and entry into racing as well as hill climbing events.

The stock market crash in October of 1929 heralded the dawn of a deteriorating economic climate. It would be two years before the full impact of the decline was made manifest.

In the meantime, Hudson introduced an all new line of vehicles for 1930 that had been on the drawing board since 1927, this included the stunning Model T and Model U powered by an all new in-line eight-cylinder engine. Even though Essex was not given such dramatic improvements, there were enough changes to the body as well as mechanics to warrant promotion of an all new model.

But the economic downturn, magnified by the growing environmental catastrophe that was a significant drought leading to the Dust Bowl and massive displacement of people in central farming states, was decimating sales throughout the industry.

For calendar year 1931, only 40,338 Essex automobiles rolled from the factory. Hudson fared even worse with only 17487 vehicles shipped to dealers.

But as bad it was for this company; Hudson was in a better position than many manufacturers. Studebaker, production, of all lines, was a mere 44,218 models. Ford, in 1929, produced 1,507,132 passenger cars. In 1931 production plummeted to 541,615 vehicles.

Unlike a number of manufacturers Hudson would survive the ravages of the Great Depression. They would continue to be an industry leader with innovation, and they would continue setting records for speed. They would even enjoy a short post WWII renaissance. But the company would never eclipse the sales successes of 1929.

 To read more by Jim Hinckley go to jimhinckleysamerica.com

A hallmark for low price, good quality

The Hudson Motor Car Company was the brainchild of four talented young engineers.

THEY stopped making cars in 1957, yet the make remains a legend, with a significant enduring fanbase.

For decades, their cars set speed records, featured advanced engineering, and provided customers with stylish durable transportation.

The brand enjoyed an enviable brand loyalty that proved crucial for survival during the Great Depression.

And for a new generation, this marque has been forever linked to Route 66 as result of achieving a starring roll the animated Cars movies.

It is, of course, Hudson.

Fortuitously the company was named for the primary investor, Joseph L. Hudson, owner of the largest department store in Detroit.

The Hudson Motor Car Company was the brainchild of Roscoe Jackson, Roy Chapin, Howard Coffin and George Dunham, talented young engineers that had launched their automotive careers at Olds. Dunham and Coffin further perfected their skills at companies such as Thomas-Detroit and Chalmers Detroit. Their goal was an ambitious one, build a durable and stylish automobile that could be sold for under $US1000.

Launched in 1909 against an ever-rising tide of automobile manufacturers, including Ford Motor Company that had recently introduced the Model T, Hudson Motor Car Company stunned the industry with its immediate success.

The Model Twenty was an instant hit with the consumer. Available only as a roadster the 20-hp, four-cylinder cars were marketed with a 50mph guarantee and a $900 price tag. The price included headlamps, dual side lamps, generator, three speed transmission, tool set and horn. They were available in but one-color scheme, dark maroon with black striping, black fenders, and the interior was dark blue leather. The options list included Bosch magneto, windshield, rumble seat and twenty-five-gallon fuel tank.

In 1910 4508 vehicles were produced. This was a new first year record for an automobile manufacturer. Production in 1911 increased to 6486 vehicles, and Hudson found itself in an enviable position, they had outgrown their production facilities within two years.

A new facility was built on a 22-acre parcel at Jefferson Avenue and Conner Avenue in Detroit diagonally across from the Chalmers Automobile Company factory and sales continued to climb.

Management was not content to rest on its laurels and in 1911 the Howard Coffin designed Model 33 was introduced. Buda was replaced by Continental who manufactured the revolutionary engine with balanced crankshaft to Hudson specifications.

The signature clutch with cork face in an oil filled unit that would be a Hudson standard for decades was introduced in the Model 33. The following year the company continued offering this model with limited mechanical changes, but the big news was that it was now available in seven body styles including the Mile A Minute Roadster.

The company had moved far beyond its original plan of offering cars for a $1000 price. For 1912 the most reasonable model was the three door Torpedo with a list price of $1600.

Then, in 1913, with introduction of the four-cylinder Model 37 and six-cylinder Model 54, the company was able to expand the list of available body types and offer a vehicle in the mid-price range or the luxury market. The base Model 37 coupe had a factory list price of $1400. At the opposite end of the spectrum was the Model 54 seven passenger limousine priced at $3750.

For 1914 the company began promoting themselves as the largest manufacturer of six-cylinder automobiles in the world, and discontinued production of four-cylinder models.

But the big news came in 1916 with the introduction of the astounding Series H Super Six with the first Hudson built engine, a car that would transform the company and the automobile industry. Even though it continued to be refined and improved, the Super Six would remain the company’s foundation into the early 1950s.

After a series of impressive wins on various tracks, the eagerly anticipated car drew immediate attention for its styling as well as mechanical prowess when it was officially introduced in January 1916 at the New York Auto Show. For the remainder of the year the company fueled media attention with an array a record setting races, and endurance runs.

One of the most astounding was a transcontinental drive from New York to San Francisco in five days, three hours and 31 minutes. Then (after an eight-hour break) the team returned to New York in just over six days. Incredibly, aside from issues with tires, both trips were completed without mechanical failure.

Before the end of the year drivers behind the wheel of a Hudson Super Six had shattered numerous records including the Pikes Peak Hill Climb and the stock chassis 24-hour record with an average speed of 74.9mph. This record stood until 1931 when it was eclipsed by a V16 powered Marmon.

Record setting wins translated into sales and fierce brand loyalty. Sales remained steady through the WWI years, and only dipped slightly during the post war recession. Exemplifying the durability and racing prowess of the Hudson was the 1919 Indianapolis 500. Ira Vail rolled across the line in eighth place with an average speed of 94.1mph. Denny Hickey finished with an average speed of 80.22mph. Ora Haibe started in 26th place and finished in 14th but the most astounding fact was that each of these contenders was driving a used Hudson. The newest one was a 1917 model.

As the price for a Hudson had continued to climb the company introduced the Essex as a lower priced companion car in 1919. The Essex had a sales price $700 less than the base model Hudson. Even though it was a bare bones vehicle that lacked some of the amenities Hudson owners had come to expect the car was a proven performer.

Under strict AAA supervision a stock 55-horsepower, four-cylinder Essex was tested at the Cincinnati Speedway in December 1919. In 50 hours, the car was driven 3037.4 miles for an average speed of 60.75mph.

In 1920 a brilliant promotional initiative was launched. The drivers and relief drivers of four Essex cars were sworn in as US post Office letter carriers. Then a bag of mail was loaded in each car, two on the west coast and two on the east coast. The average time for completion of the coast to coast run was an astonishing four days, twenty-one hours, and thirty-two minutes. Not surprising is the fact that by the beginning of 1921 the Essex was outselling its parent.  

But this was just the beginning.

Part two next week.

 To read more by Jim Hinckley go to jimhinckleysamerica.com