Following the General Motors model, REO's management team expanded the automotive line with the additions of the Flying Cloud and Wolverine series vehicles. Company profits were utilized for model expansion, and when the market bubble burst in 1929, the company suffered. In 1933, Ransom returned to the company to retain leadership.
REO entered into a sales agreement with Mack Truck in 1934 to offer the lighter REO line in selected Mack dealerships. The deal was intended to broaden REO's exposure, and thus increase sales. In January of 1936, REO went so far as to produce a Mack Jr. light-truck line. Sadly, both of these programs failed to generate sales success. Other company programs, including a concept delivery van, a Flying Cloud transit bus line, and a new four-cylinder small car, were all stillborn. Finally with the demise of full-sized automobile platform production, the company was forced to declare bankruptcy in 1938.
A reorganized REO Motors emerged in 1940 as a result of government intervention. During this reorganization period, REO's styling studios were busy preparing a new Moreload Speedwagon vehicle. Though interest in the new Speed Wagon was high, the civilian market would have to wait, as 100 percent of the company's production was turned over to the government during World War II.
An REO Speedwagon fire truck...
An REO Speedwagon fire truck at the Jack Daniel's distillery in Lynchburg, Tennessee.
War And Forward Progress
The REO Motors company played an important role in supplying the allied forces with 29,000 vehicles for the war effort. Financial stability returned, and the military contracts provided funding for civilian market research, along with upgraded styling.
REO went forward with the introduction of '47 models, which focused on heavier-duty platforms. The Model 30 and Model 31 broke the conventional truck styling mold with a radical new look, and REO Motors went after new business with the government. The result was a new contract for an Army icon, the construction of 17,132 Eager Beaver 2 1/2-ton M34 6x6 trucks.
Diesels Appear
REO Motors offered diesels for the first time in 1953, with the inline 401ci Cummins JBS-600 and the Buda 6 DTS-486 each developing 150 hp. A new Class 8 cabover tractor appeared the same year. Several versions of the chassis were introduced throughout the '50s. A tandem dual-rear-axle truck appeared in 1956 with an optional 175hp 401ci Cummins JT-6B engine. The diesel-powered B and BL conventional series appeared in June of 1957. Three 4x2, four 6x4, three off-highway, and six tractor platforms were produced. A variety of front-axle positions were offered to suit government standards. Nine Cummins engines were available, delivering 175 to 335 hp.
Merger And Demise
Bohn Aluminum and Brass purchased REO Motors in January 1955. This relationship was short-lived, however, as it sold the assets to White Motor in 1957. The new REO division was watered down, as White dealers began selling REO and Autocar trucks and parts side by side. White's main interest was in REO's Comet line of gasoline engines, which were utilized in White trucks.
White also swallowed up Diamond T in 1958 and moved production to Lansing in 1960. This move created a Lansing division for REO and Diamond T. Both marques were produced until 1966, when the brands were combined to form Diamond-REO. DP