Studebaker Canada - Importer Status

Importer Status

During this period, Studebaker of Canada also imported cars for Volkswagen of Canada, using its status as a Canadian manufacturer to take advantage of lower import duties than a Canadian importer. Studebaker was able to import Volkswagens from Germany and sell them to Volkswagen of Canada at a lower cost to Volkswagen and Studebaker was still able to make $150 on each car imported.

Studebaker of Canada also attempted to import Datsun cars to North America. It was felt a second vehicle for Studebaker dealers would help increase showroom traffic and sales, and that one of Datsun's larger models could serve as a Studebaker-badged replacement for its own aging design. Studebaker of Canada president, Gordon Grundy, flew to Japan to meet with the heads of Nissan, makers of the Datsun. All was going well when management in South Bend ordered Grundy to break off talks with Nissan and approach Toyota instead. Toyota refused to speak with Grundy as he had not approached them first, and Nissan would not reopen discussions. The decision to change talks in mid-stream was the result of a suggestion from a member of the head office's legal firm (reputedly Richard Nixon), who felt Toyota would be a better choice. In the end, Studebaker had no imported car for its dealers from either manufacturer.