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REO Motor Car Company

From Alfawiki
REO Motor Car Company
IndustryAutomotive
Founded1905; 121 years ago (1905)
FounderRansom E. Olds
DefunctTemplate:End date and age
FateVehicle manufacturing division merged with Diamond T to form Diamond Reo Trucks, remainder transformed into Nucor
SuccessorDiamond Reo Trucks
Nucor
HeadquartersLansing, Michigan
ProductsCars, buses, trucks

The REO Motor Car Company (pronounced as a single word) was an automobile and truck manufacturer based in Lansing, Michigan, operating from 1905 until 1975. The firm also produced buses constructed on its truck chassis.

Founded by entrepreneur Ransom E. Olds, who had previously established several automotive enterprises including Oldsmobile in 1897, REO Motor Car Company was launched in 1905 following Olds' departure from Oldsmobile. Olds held a majority stake of 52% and served as president and general manager. His business approach involved creating affiliated companies such as National Coil Company, Michigan Screw Company, and Atlas Drop Forge Company to ensure a reliable supply chain for components and support manufacturing.

Originally planned to be named "R. E. Olds Motor Car Company," the company was renamed REO due to legal disputes initiated by his former company, Olds Motor Works (later known as Oldsmobile). The name REO is derived from Olds' initials. Meanwhile, Oldsmobile became part of General Motors Corporation along with Buick and Cadillac.

Throughout its history, the brand alternated between the stylizations REO and Reo in promotional materials and official documents; nevertheless, the pronunciation remained consistent as one word. Lansing is also home to the R. E. Olds Transportation Museum.

Early production

By 1907, REO achieved gross sales totaling $4.5 million, positioning it among the top four wealthiest automobile manufacturers in the United States. Despite enhancements in vehicle design implemented by Olds after 1908, the company’s market share diminished due to rising competition from newcomers such as Ford and General Motors.

In 1910, REO broadened its operations by launching a truck production division and establishing a manufacturing facility in St Catharines, Ontario, Canada. By 1912, Olds was promoting a touring automobile equipped with a engine and a wheelbase, priced at $1,055 excluding optional extras.

In 1915, Richard H. Scott was appointed general manager by Olds, who stepped down as president in 1923 but continued serving as chairman of the board. Under Scott’s management between 1915 and 1925, REO maintained profitability and introduced pioneering products such as the 1923 "Motor Pullman Car," an early form of recreational vehicle featuring integrated amenities.

REO earned significant market attention in 1912 when its vehicle completed the first automobile crossing of Canada during the Trans-Canada expedition, demonstrating the durability of its automobiles.

In 1925, Scott embarked on an ambitious plan to expand REO’s product lineup and compete across various price points. Unfortunately, this initiative faltered during the Great Depression, resulting in substantial financial losses. Olds briefly returned as CEO in 1933 but resigned the following year. By 1936, REO discontinued passenger car production to concentrate exclusively on trucks.

Annual truck sales figures reflected this transition: 5,101 units sold in 1935; decreasing to 4,227 in 1936; further declining to 2,929 in 1938 and only 853 by 1939.

Number of Motor Vehicles produced by REO

  • 1909 - 5728
  • 1910 - 6588
  • 1911 - 5728
  • 1912 - 6342
  • 1913 - 7647
  • 1914 - 12745
  • 1915 - 22247
  • 1916 - 27811
  • 1917 - 30246
  • 1918 - 20158
  • 1919 - 16483
  • 1920 - 32800
  • 1921 - 22342
  • 1922 - 23152
  • 1923 - 31880
  • 1924 - 28681
  • 1925 - 32650
  • 1926 - 34542

Reo Flying Cloud and Reo Royale

Among REO's most distinguished automobiles were the Reo Flying Cloud, introduced in 1927, and the 1931 Reo Royale 8.

The Flying Cloud marked the debut of Lockheed's hydraulic internal expanding brake system in an automobile and showcased design work by Fabio Segardi. Its name, symbolizing speed and agility, influenced future vehicle naming trends. The car featured a wheelbase of . The last REO model produced in 1936 was a version of the Flying Cloud.

In April 1927, REO unveiled the Wolverine line as a complement to the Flying Cloud. Equipped with a Continental engine and characterized by unique artillery wheels and radiator louvers, the Wolverine remained in production until 1928.

The 1931 Reo Royale introduced styling cues that pioneered streamlined automotive design within the American industry. The eight-cylinder variant was marketed through 1933 with incremental updates, while a more affordable six-cylinder version continued under the Royale name until 1935. Automotive historian Beverly Rae Kimes described the Royale as "the most fabulous Reo of all." Its Murray coachwork, crafted by Amos Northup, housed a straight-eight engine featuring advanced components such as a nine-bearing crankshaft and thermostatically controlled radiator shutters. Depending on the specific model and year, wheelbases varied between .

Beginning in 1933, REO offered its semi-automatic Self-Shifter transmission as an optional feature on the Royale; however, it was plagued by reliability issues and received unfavorable reviews from consumer reports. Prices ranged from $2,145 for the Model 8-31 to nearly $6,000 for custom coachbuilt editions, positioning the Royale as a high-end vehicle. The 8-35 and 8-52 variants have been recognized as classics by the Classic Car Club of America (CCCA).

After passenger cars

While REO experienced some recovery due to truck orders during World War II, the company struggled with instability after the war, culminating in bankruptcy reorganization. By 1954, facing continued difficulties, REO divested its vehicle manufacturing division—the company's core asset—to Bohn Aluminum and Brass Corporation based in Detroit. In 1957, this division became part of White Motor Corporation, which merged REO with Diamond T Trucks in 1967 to create Diamond Reo Trucks. Subsequently, Volvo acquired White Motor Corporation and presently holds ownership of the REO brand.

Following the sale of its vehicle manufacturing operations, REO's leadership began winding down remaining assets. However, shareholders opposed this move during a 1955 proxy contest, compelling REO to execute a reverse takeover of Nuclear Consultants, Inc., a small firm specializing in nuclear services. Renamed Nuclear Corporation of America, Inc., the company diversified into prefabricated housing and steel joist production but encountered failures leading to another bankruptcy by 1966. After reorganization, only the steel joist segment persisted; eventually, the company transitioned into recycled steel manufacturing and rebranded as Nucor, now recognized as a major steel producer.

Studebaker agreement

During the Second World War, REO manufactured roughly 20,000 Studebaker US6 trucks under a licensing agreement. These REO-produced models incorporated alterations like distinct door handles and enhanced engine power. In contrast to the Studebaker trucks deployed by the U.S. armed forces, REO's US6 vehicles were solely shipped to the Soviet Union.

Automobiles

  • Type A (1905–1908)
  • Type B (1905–1908)
  • Type C (1909–1910)
  • Type D (1909–1910)
  • Type G (1909–1910)
  • Type R & Thirty (1910–1911)
  • Type S (1910–1911)
  • Type K (1911)
  • Type H (1908–1914)
  • Type J (starting 1911)
  • 19 AS
  • 96-T
  • Comet
  • DC
  • Flying Cloud & Flying Cloud Mate
  • GB
  • Gold Comet
  • M-109
  • M-34
  • M-35 & M-35 A1
  • M-48
  • M-49
  • M-50
  • M-52
  • M-Series
  • M-246
  • R-5 "Reo the Fifth"
  • Royale & Royale Elite
  • Runabout
  • T-6 (1920–1926)

Trucks

  • 19 AS
  • AC
  • Apollo
  • Reo Junior BA
  • Comet
  • DA
  • DC
  • FA
  • GA
  • GB
  • Giant
  • Gold Comet
  • M35
  • Raider
  • Royale
  • Speed Wagon
  • Speed Delivery
  • Speed Tanker

Bus Models

  • REO Omnibus 12-passenger Sedan (1928)
  • REO Omnibus 12-passenger Post (1928)
  • REO Omnibus 18-passenger (1928)
  • REO Omnibus 20-passenger Sedan (1928)
  • REO Omnibus Typ A 22-passenger (1928)
  • REO Omnibus Typ B 22-passenger (1928)
  • REO Omnibus 28-passenger City (1928)
  • REO Omnibus 32-passenger Post (1934)
  • 96HTD
  • W series
  • Gold Comet

Customers

Cultural References

  • The rock band REO Speedwagon derived its name from the REO Speed Wagon light delivery truck, an early forerunner of contemporary pickup trucks.
  • The country group Diamond Rio took inspiration from REO’s successor company, Diamond Reo Trucks, with lead vocalist Marty Roe adopting the intentional misspelling to complement their Southwestern-country identity.
  • A REO vehicle is featured in James Thurber’s 1933 short story The Car We Had to Push, signifying its cultural prominence.
  • Performers in the Barnum & Bailey Circus operated a miniature replica of the 1906 Reo Model-A Light Touring Car, called the "Baby Reo".

See also

External links

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