REO Motor Car Company

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The REO Motor Car Company (pronounced /ˈriːoʊ/, not as individual letters) was a business located in Lansing, Michigan. It made cars and trucks from 1905 to 1975. At one time, the company also built buses using its truck designs.

The REO Motor Car Company (pronounced /ˈriːoʊ/, not as individual letters) was a business located in Lansing, Michigan. It made cars and trucks from 1905 to 1975. At one time, the company also built buses using its truck designs.

Ransom E. Olds was a business owner who started several companies in the automobile industry. In 1897, he founded Oldsmobile. In 1905, he left Oldsmobile and created a new company called REO Motor Car Company in Lansing, Michigan. Olds owned 52% of the company and held the titles of president and general manager. To ensure a steady supply of parts, he started several other companies, such as the National Coil Company, the Michigan Screw Company, and the Atlas Drop Forge Company.

At first, the company was named "R. E. Olds Motor Car Company." However, the owner of Olds’ previous company, known as Olds Motor Works, disagreed and threatened legal action because of possible confusion between the names. To avoid this, Olds changed the name to his initials, REO. Later, Olds Motor Works became widely known as Oldsmobile, which, along with Buick and Cadillac, became part of General Motors Corporation.

The company’s name was sometimes written in all capital letters as REO or with only the first letter capitalized as Reo. The company’s own materials showed different styles over time, with early ads using all capitals and later ads using "Reo." The name was always pronounced as one word. Lansing, Michigan, is home to the R. E. Olds Transportation Museum.

Early production

In 1907, REO's sales reached $4.5 million, and the company was among the four wealthiest automobile makers in the United States. After 1908, however, REO's share of the automobile market decreased despite the introduction of improved cars designed by Olds. This decline was partly due to competition from new companies like Ford and General Motors.

In 1910, REO added a truck-manufacturing division and opened a Canadian plant in St. Catharines, Ontario. Two years later, Olds claimed he had built the best car possible. This car, called a tourer, could seat two, four, or five people. It had a 30–35 horsepower engine, a 112-inch wheelbase, and 32-inch wheels. The car cost $1,055, not including the top, windshield, or gas tank, which added $100. A self-starter cost an additional $25.

In 1915, Olds gave up the title of general manager to his protégé, Richard H. Scott. Eight years later, Olds ended his presidency but remained chairman of the board.

In 1912, an REO special touring car completed a 4,176-mile trip across Canada, from Halifax, Nova Scotia, to Vancouver, British Columbia. The car, driven by mechanic/driver Fonce V. (Jack) Haney and journalist Thomas W. Wilby, made the first automobile journey across Canada. The trip included a short drive into northeastern Washington State when Canadian roads were difficult to travel.

From 1915 to 1925, under Scott's leadership, REO stayed profitable. In 1923, the company sold an early recreational vehicle called the "Motor Pullman Car." Designed by J. H. Brown, a newspaper editor from Battle Creek, Michigan, the car had a drop-down sleeping area, a built-in gas cooking range, and a refrigerator.

In 1925, Scott started an expansion program to help REO compete by offering cars in different price ranges. This plan failed, and the Great Depression caused major losses. In 1933, Olds returned from retirement to take control of REO but resigned in 1934. In 1936, REO stopped making cars and focused only on trucks. In 1935, REO sold 5,101 units, and in 1936, it sold 4,227 trucks. In 1938, REO sold 2,929 units, and in 1939, it sold 853 trucks.

Number of Motor Vehicles Produced by REO:
• 1905 – 12–15 Vehicles per day
• 1909 – 5,728 Vehicles
• 1910 – 6,588 Vehicles
• 1911 – 5,728 Vehicles
• 1912 – 6,342 Vehicles
• 1913 – 7,647 Vehicles
• 1914 – 12,745 Vehicles
• 1915 – 22,247 Vehicles
• 1916 – 27,811 Vehicles
• 1917 – 30,246 Vehicles
• 1918 – 20,158 Vehicles
• 1919 – 16,483 Vehicles
• 1920 – 32,800 Vehicles
• 1921 – 22,342 Vehicles
• 1922 – 23,152 Vehicles
• 1923 – 31,880 Vehicles
• 1924 – 28,681 Vehicles
• 1925 – 32,650 Vehicles
• 1926 – 34,542 Vehicles

Reo Flying Cloud and Reo Royale

REO's two most well-known cars were the Reo Flying Cloud, introduced in 1927, and the Reo Royale 8, introduced in 1931.

The Flying Cloud was the first car to use Lockheed's new type of brake system and had styling designed by Fabio Segardi. Ned Jordan changed how advertising was written with his famous "Somewhere West of Laramie" ads for the Jordan Playboy. The Flying Cloud's name inspired ideas about speed and lightness and influenced how cars would be named in the future. It had a 115-inch (2,900 mm) wheelbase. The last REO model made in 1936 was also a Flying Cloud.

In April 1927, Reo introduced the Wolverine brand of cars as a companion model to the Flying Cloud. The Wolverine had a Continental engine, artillery wheels, and a different design for its radiator louvers compared to the Flying Cloud. It was produced until 1928.

The 1931 Reo Royale was a groundbreaking design that introduced features that set the stage for more streamlined car designs in the United States. The 8-cylinder model was sold until 1933 with small updates. The name was later used for a less expensive 6-cylinder model until 1935. Beverly Rae Kimes, editor of the Standard Catalog of American Cars, called the Royale "the most fabulous Reo of all." The Royale had coachwork designed by Murray, led by Amos Northup, and included a 125 hp (93 kW) straight-eight engine with a nine-bearing crankshaft, one-shot lubrication, and radiator shutters that automatically adjusted temperature. The Royale had factory wheelbases of 131 inches (3,300 mm) (Model 8-31) and 135 inches (3,400 mm) (Model 8-35). A 1932 custom version had a 152-inch (3,900 mm) wheelbase (Model 8-52). In 1931, three Dietrich coachbuilt bodies were made on 148-inch (3,800 mm) wheelbases. Starting in 1933, the Royale also offered REO's semi-automatic transmission, the Self-Shifter. This system was unreliable, and Consumers Union Reports warned buyers to avoid it. The Model 8-31 cost $2,145. The Model 8-35 cost $2,745 for the sedan and $3,000 for the convertible coupe. Coachbuilt cars were priced near $6,000. A convertible Victoria was listed at $3,195, but only one is known to have been made. The 8-35 and 8-52 models are considered full CCCA classics.

  • REO runabout 1906
  • 1917 Model M Touring
  • 1919 REO Touring
  • REO Fire Truck
  • 1934 REO Bus
  • 1939 REO Speed Wagon Truck
  • REO bus in Norway
  • Cottage Grove Dump Truck, Lane County, Oregon
  • Badge from a REO Speed Wagon Fire Truck
  • An REO Speed Wagon, from a 1917 advertisement
  • REO Speed Wagon Fire Truck at Jack Daniel's Distillery, Lynchburg, Tennessee
  • Reo Flying Cloud 4.7-litre
  • 1931 Reo Royale Victoria Eight
  • Car emblem for a Reo Flying Cloud (1930 model)
  • REO truck filled with citrus fruit, Kfar Saba, Mandatory Palestine, 1932

After passenger cars

During World War II, increased truck orders helped the company recover slightly, but it remained unstable after the war, leading to a bankruptcy reorganization. In 1954, the company was still struggling and sold its vehicle manufacturing operations—the company’s main asset—to the Bohn Aluminum and Brass Corporation in Detroit. Three years later, in 1957, Reo’s vehicle manufacturing became part of White Motor Corporation. In 1967, White merged Reo with Diamond T Trucks to create Diamond Reo Trucks. Later, Volvo acquired White, and now owns the rights to the REO brand name.

After selling its vehicle manufacturing business to Bohn in 1954, the company began selling off its remaining assets. However, in September 1955, a group of shareholders challenged this liquidation in a legal dispute and forced Reo to take over a small nuclear services company named Nuclear Consultants, Inc. in a reverse takeover. The new company, called Nuclear Corporation of America, Inc., expanded into other industries such as prefabricated housing and steel joist manufacturing, in addition to nuclear services. Most of these businesses failed, and by 1966, the company was bankrupt again. After reorganizing, only the successful steel-joist business remained. The company later began producing recycled steel and eventually changed its name to Nucor.

Studebaker agreement

Most Studebaker US6 trucks were made by Studebaker. However, during World War II, REO made some of these trucks under a special agreement with Studebaker. The REO trucks had differences, such as new door handles and a stronger engine. It is believed that REO made about 20,000 of these trucks. Unlike the original Studebaker trucks, which were also used by the United States, the REO trucks were only sent to the Soviet Union for use.

Products

  • W 2 (1924)
  • 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

In popular culture

The 1971 movie Big Jake included REO motor cars.

  • The band REO Speedwagon chose their name from the REO Speed Wagon light delivery truck, a type of early pickup truck.
  • The band Diamond Rio took their name from REO's later company, Diamond Reo Trucks. The band spelled "Reo" incorrectly as "Rio," but the lead singer, Marty Roe, decided to keep the name, saying it had a country-Southwestern style.
  • A REO car is mentioned in a funny 1933 short story titled The Car We Had to Push by James Thurber. The story describes Thurber’s family car, which only started when pushed for a long distance. After many unusual events, the car was damaged by a trolley.
  • The Barnum & Bailey Circus displayed sideshow performers, Tiny Tim and Tom Thumb, driving a smaller version of the 1906 Reo Model-A Light Touring Car, called the "Baby Reo."

Advertisements

  • A 1906 REO advertisement
  • A 1912 REO advertisement by R. M. Owens & Co.
  • A 1919 REO Motor Car Company advertisement from The Syracuse Herald, June 8, 1919
  • A 1953 REO advertisement on the back cover of the October 1953 issue of Popular Mechanics
  • A 1929 REO advertisement displayed at Yanase dealerships in Japan

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