The Rearview Mirror: How a Merger Saved an Automaker’s Reputation


The Rearview Mirror: How a Merger Saved an Automaker’s Reputation
Henry J. Kaiser

Lots of feel that Henry J. Kaiser unsuccessful as an automaker, offered that his Kaiser- and Frazer-branded cars and trucks scarcely lasted 8 several years. But this 7 days in 1953, a year just before his eponymous autos ceased manufacturing, Henry J. Kaiser buys ailing automaker Willys-Overland for $63.4 million.

It was the biggest automobile merger to day, while some wondered why he bothered — and with very good rationale. But the buy would show to be a wise one particular, and would build Kaiser as a prosperous car manufacturer — many thanks to the Jeep.

Environment War II to the rescue

Willys-Overland hadn’t generally been the basket case it turned by the time of its acquisition by Kaiser. In actuality, for a time in the 1920s, it ranked 2nd only to Ford in income. But administration issues located it declaring personal bankruptcy in 1933, and exiting 4 years later. Even though the firm made a lot more than 60,000 automobiles and netted a financial gain of $473,000 in 1937, the journey into bankruptcy didn’t instill purchaser confidence, and the company’s fortunes declined the moment more. 

It’s only underneath the stewardship of product sales supervisor Joseph Frazer the firm did not are unsuccessful at the time far more. Even though motor vehicle profits remained meager, Frazer had gained a U.S. Army contract to establish the Jeep, leading to a revenue in 1941 of $809,258, and a backlog of $42.5 million in defense orders. Willys-Overland profited alongside with the war, as dollar quantity grew from $21 million in 1941 to $213 million in 1944.

A postwar industry brings new problems

A 1944 Jeep Willys MB

At war’s stop, you may have anticipated Willys to resume vehicle production. But the business lacked the ability to establish its have bodies. With nothing else to market, Willys-Overland gussied up the armed forces Jeep MB and launched it as the 1945 Jeep Common.

The company continued to current market variants of the Jeep, the first getting the Willys Jeep station wagon in 1947. Made by Brooks Stevens, its slab-sided look resulted from its require for body panels that could be created in a plant that stamped sheetmetal for property appliances. It was adopted by the Jeepster in 1948. Following a lot more than a few many years with no new motor vehicle generation, customers have been getting something, and Willys thrived.

Nevertheless, it would not be right up until January 1952, a 10 years following the last Willys automobile was constructed that the automaker introduced a new vehicle: the Aero Willys. Smaller sized than any auto crafted by Typical Motors, Ford or Chrysler, the Aero Willys competed towards the Nash Rambler, Hudson Jet and Kaiser’s Henry J — compact autos making an attempt to discover success in a marketplace that only rewarded huge autos.

Willys autos were being under no circumstances all that well-liked, but Kaiser did not obtain Willys for its vehicles.

Willys managed to sell extra than 41,000 units, and factors appeared to be going nicely. But its times have been numbered — and Henry Kaiser preferred Willys-Overland Motors. 

A Kaiser never retrenches

Liberty Ship company Henry Kaiser experienced entered the vehicle company in 1946, partnering with Joseph Frazer, who remaining Willys-Overland to commence the new brand, identified as Kaiser-Frazer.

In the beginning, the vehicles sold well, a fresh new style and design in a market flooded with modestly up to date prewar types. But the Big A few had been prepared with all-new lines for 1949, although Kaiser-Frazer’s designs had been tiny adjusted.

Being an car field veteran, Joseph Frazer advised paring back again manufacturing in mild of the impending flood of new types. Henry Kaiser told him, “a Kaiser by no means retrenches,” and planned to construct 200,000 units. They offered close to 60,000. There were being so lots of still left more than, finally some 1950 products have been specified new serial figures and offered as 1951s. By that position Frazer was long gone and the nameplate dropped. In its spot came the Henry J, a compact vehicle being marketed at a time when compact auto income were being as meager as their size. It flopped, but its engine came from Willys,­ which Kaiser made the decision to buy.

1957 Jeep FC-170, one of Willys’ industrial autos

Some questioned why, presented the Jeep’s enchantment was relatively small at that time, but the Jeep experienced no level of competition for its four-wheel-drive autos. And the Aero Willys was still a relatively new design. 

But Kaiser was in a spot.

He experienced by no means failed at just about anything he experienced tackled in his existence. But so much, the automobile enterprise was proving to be an exception. Kaiser-Frazer hadn’t turned a income considering the fact that 1948, and a scent of demise permeated the brand. Willys-Overland gave him a new product or service line to offer. He nabbed it for $63.4 million.

Although arrive saw it as throwing very good income right after poor, it proved to be a smart decision for Kaiser.

Wills-Overland was renamed Willys Motors, although its automobiles, alongside with Kaiser’s Kaiser line, were being on their final legs. Hunting to salvage his automotive empire, Kaiser begins a marketing and advertising marketing campaign to capitalize on the public’s fascination with the Jeep. Inside two several years, Jeep product sales volume tops $160 million, and Kaiser realizes a $5 million revenue. 

Cars and trucks are yet another issue. Both equally the Kaiser and Aero Willys are axed, although the latter would continue on to be crafted with styling revisions in Argentina via 1970. 

Jeep continues to expand

1963 Jeep Gladiator

Willys Motors is renamed Kaiser Jeep Corp. in 1963. The following calendar year, Kaiser buys Studebaker’s protection business, one that dates to the Civil War, as Jeep’s products line proceeds to mature with the arrival of the Wagoneer. By the time Kaiser dies in 1967, Jeep has production services in 33 nations around the world. 

Two many years later on, Kaiser Industries agrees to provide Kaiser Jeep Corp. to American Motors Company. The deal concludes in 1970, when AMC renames it Jeep Corp., creating it as a subsidiary of AMC. Kaiser’s military division is spun off as AM Typical. 

AMC considerably expands the Jeep’s appeal and level of popularity. But much like Kaiser Jeep, AMC’s vehicle strains start out falling in popularity, even as their Jeeps keep on being lucrative. By the 1980s, AMC merges with French automaker Renault, which also fails to revive AMC’s profitability. In 1987, Renault sells AMC to Chrysler Corp. CEO Lee Iacocca admitted that the only cause he purchased AMC was to acquire Jeep. It would be a really intelligent go, as the brand’s attractiveness boomed with consumers’ want for SUVs. 

It would be the jewel in the crown of Chrysler Corp. upon its merger with Mercedes-Benz to grow to be DaimlerChrysler, and Chrysler’s later acquisition as a portion of Fiat Chrysler Automobiles. These days, it’s component of Stellantis, and amid the greatest providing of the company’s 15 brands around the world.


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