Wanna Buy A Car Company Online? - Packard, whole company on sale by eBay - Brief Article

Automotive Industries, Oct, 2000 by Don Sherman

When Roy Gullickson of Phoenix, Ariz., had automotive merchandise he wished to sell, he turned to eBay Motors (www.ebaymotors.com), like thousands of other vendors do each day. But this wasn't your typical one-owner, low-mileage Chevy or Dodge sedan being put on the block -- or screen. Rather, Gullickson placed the Packard Motor Car Co., kit and caboodle, up for bids.

For a five-day period, spanning Labor Day 2000 weekend, anyone with sufficient means could be the new owner of one of the most prestigious luxury car names in American history. The Packard brand was active from 1899 through 1958, and its sales eclipsed both Cadillac and Lincoln during 20 out of the 21 model years from 1925 through 1949.

What Gullickson offered for sale were the entire assets of an enterprise he's been nurturing since 1994, when he purchased all rights to the famous Packard brand (except for watercraft) from Ohio-based Packard-Bayliff Coach. His bill of sale, administered by eBay affiliate Kruse International, listed trademark registrations for two Packard trade logos; one V-12-powered running prototype; one styling buck made of foam, fiberglass and steel; 400 engineering drawings; 40 pieces of styling artwork; various archives, including letters from nearly 100 prospective customers and 7,300 other individuals expressing an avid interest in Packard automobiles; and an extensive set of tools, dies, molds, fixtures and patterns.

Gullickson, a 64-year-old mechanical engineer formerly in charge of development at White Motor Corp. (now Volvo's U.S. truck division), wasn't exactly pursuing liquidation. "I resorted to eBay as a potential source of investors," he says. "My services are available if the new owner wishes me to continue with the effort."

If sufficient backing arrives, Gullickson's Great New Packard lineup could eventually consist of sedan, coupe and convertible models, each powered by a 7.0L to 8.0L V-12 engine driving all four wheels.

Alas, the eBay Packard offering prompted only 10 bids from five bidders. The top offer of $275,100 -- a figure below Gullickson's (unspecified) reserve -- arrived in the popular "spike" fashion during the last five minutes of the auction period. However, Kruse International is continuing negotiations with interested parties off-line. If you're interested in owning Packard, contact Jeff Doner at 800-968-4444 or visit the firm's Web site at www.kruseinternational.com.

How challenging is it to sell a vintage brand, albeit one with plenty of prestige? Martyn Straw, president of Interbrand Corp., a consultancy that tracks the fortunes of the world's most prominent brand names, believes that Packard will be a very tough sell.

"I see two problems in attaching any significant worth to this name," notes Straw. "Brand equity comes from the earnings that can be anticipated in the future and the security attached to those earnings. Unless legitimate and realistic business plans are part of the sale, I consider the Packard brand essentially worthless."

The second problem is that it's difficult to associate any brand name that expired in the 1950s with modern technology, Straw adds.

In other words, a modern Packard would appeal to very few customers and such a product wouldn't likely generate significant revenue for its owner. Whomever ends up with the Packard brand might find value in selling T-shirts at Hershey -- or perhaps scale-model rights to the Franklin Mint.