South Bend Speedster

Cocky, independent automaker Studebaker Corp. — which was in receivership in 1933-35 — last week had something it could really crow about: its 1942 munitions out put will hit $215,000,000, twelve times its total World War I arms production and double its biggest peacetime year. Main reason: the company's remarkable ability in mass-producing intricate, 8,000-part, 1,200-h.p. Wright Cyclone engines for giant four-engined U.S. bombers. Studebaker turns them out in huge, sparkling, air-conditioned factories at South Bend, Ind., had speeded the job with time-killing machines like the 1 75-foot monster which finishes a cylinder head in 49 seconds v. 300 hours the old way. The go-year-old onetime wagonmakers also produce thousands of pug-nosed military trucks, auto & truck parts, plus some hush-hush military goods.

Proud of its production, Studebaker is also proud of something else: its profit margins on Government contracts are paper-thin. In 1923 the company earned 10% on sales, in 1941 about 2%, this year less than 1%.