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Rather than making suppliers totally influenced by them, carmakers are more interested in having suppliers who are soundly financed and will probably have lots of customers in order to survive the days when auto creation is cut back. It is possible, of course, that in 1948 some suppliers could have been more attentive to Big Three customers than to Tucker.
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The persistent fear at supplier firms is a customer may not have the ability to pay the bills. In view of troubling rumors that were circulating about Tucker Corporation in early 1948 already, any potential suppliers would have been skittish about selling to the ongoing company except on a c.o.d, basis.
Tucker, however, reached the idea of buying creation parts in volume never. The probably Big Three response to Tucker is that the top auto managers noted his company and quickly dismissed it as a speculative venture that could not survive. The duty of following Tucker and confirming on his progress could have been designated to the market-research one who tracked competitors’ activities.
Far from conspiring to ruin Tucker, the best Three professionals were more concerned about competing with each other for the long ton. Another reason given for the Tucker failure is that the SEC leaked damaging information which had the effect of stifling sales of Tucker stock and dealerships. As a total result, Tucker fell much short of raising the quantity that could have been needed to get into production. 100 million is probably a good estimation. This was four times the total amount Tucker actually raised. Whatever the result SEC leaks may have had on Tucker’s venture, his failure to raise more capital can be easily explained by the ordinary behavior of the investment market.
The amazing thing is not that Tucker failed to finance his business. 26 million with him. With or without the SEC, the currency markets has an cleverness of its and puts beliefs on stocks after they have been sold. Though Tucker was able to milk thousands of small, trusting investors, he had not been likely to tap into shrewder ones who realized how speculative his entire venture had become. Price is the stock market’s way of expressing opinion about company values, and in Tucker’s case the share prices plummeted as facts started to surface, foreclosing any wish of increasing funds with new collateral offerings virtually.
Another misconception is that Tucker did have a groundbreaking car which foretold Detroit’s future. Newspaper articles recently extolled a few of the unusual features of the Tucker car: a pop-out windshield, a back engine, a Cyclops light in the guts which changed with the front wheels, a cushioned dash, and an aerodynamic body style.