Minutes of March 11, 1963 meeting of Studebaker department heads.
Mr. Detzler inquired as to when the R-3 engine would be available. He said Sales has a few orders and would like an indication of delivery dates.
Mr. Hardig reported that Mr. Granatelli expects to finish one engine for Mr. Egbert by the end of March. Another six are in production and it is expected that basic production delivery of these engines will be scheduled for the latter part of April. Costs are being developed, and before selling prices are set, top management will determine the amount which the Corporation will absorb.
Minutes of April 22, 1963 meeting of Studebaker department heads.
R3 Engine Pricing
Mr. Detzler wanted to know what the status of this is and when we are going to get the prices. We don’t have many orders for these engines, but they are old and the customers are crying for them. Dr. Lamberti indicated that we would be happy if we didn’t sell one engine. Right now, Mr. Granatelli says it will be in June sometime. He has given Mr. Egbert the date of June 20. He’s running his Novis in the 500. It won’t take him very long after the end of May because he has a lot of stuff in process, and he has almost enough material for the whole 100 engines. He has one engine ready that he will put into a car we sent out there.
Pricing-wise, our suggestion is that we should cover manufacturing costs. Mr. Egbert has all the papers for the pricing for all the ranges, along with the comments of Sales and PR. Their price suggestions vary all the way from $500 to $1,000. Sales recommended $500-$600, and Messrs. Dredge and Granatelli said we could live with about $900. The price includes the whole kit. Our manufacturing costs run about $1,400. Dr. Lamberti suggested that Mr. Rickus write a memo to Mr. Egbert summarizing these points, showing competition prices, PR opinion, manufacturing costs, etc.
Mr. Dredge strongly recommends that we have some engines pretty soon. We talked ourselves out of one blowoff, but he doesn’t think we can talk ourselves out of two.