Roy Abernethy

September 29, 1906 (age 70)

Abernethy, whose first jobs were caring for coal mine mules and laying track with a railroad section gang, was a master salesman who had a lifelong fascination with automobiles. He began his career in the automobile industry in 1925, working as an apprentice mechanic (a "grease monkey") for 18 cents per hour at Burke Packard in Pittsburgh. He became a salesman for Packard in 1926. Abernethy's career at Packard progressed rapidly. At one time or another, he held every sales position in the Packard organization. He moved from retail sales to district manager in 1932. In 1943, Packard transferred Abernethy to Kansas City, Missouri, as regional manager. Two years later, he was back in Pittsburgh as zone manager for Packard dealerships. He became a Packard vice-president and eastern regional manager in 1948. Abernethy left Packard management to open his own dealership in Hartford, Connecticut, later in 1948. He sold more than $1 million worth of automobiles in a single year. His outstanding success as a dealer brought him back into Packard management in 1950, as general manager for Packard New York and, later that year, as assistant general sales manager for Packard Motor Car Company. In 1953, Abernethy joined Willys Motors in Toledo, Ohio, as vice-president and sales manager. He was recruited by George Romney to join the newly formed American Motors Company (AMC) in October 1954. American Motors had been formed by a merger of the Hudson Motor Company and the Nash-Kelvinator Corporation in May 1954. Abernethy's position as vice-president of Nash-Kelvinator sales was to rebuild the "floundering, apathetic, overlapping dealer organization so that it would contribute to, rather than detract from, AMC's sales strength. " After the merger, AMC was beset by sales complacency and poor management, a debt of $65 million, and diminished public confidence reflected in shrinking automobile sales. The Nash Rambler, a compact car that was more economical to run and maintain, was AMC's hope for improving market share, but it stood in competition not only with other Detroit models but also with AMC's full-sized Nash and Hudson models. In the automobile industry, the manufacturer sells to franchised dealers who in turn sell to the public. Abernethy's task at AMC was twofold. First, he had to streamline an inefficient and costly dealer system while building outlets for service, parts, and accessories. Second, he had to sell the concept of a compact car to AMC dealers, who were in habit of selling cars that were bigger, heavier, and more powerful with each new model. Abernethy, who rallied to a challenge, was eager to go to work for AMC. He believed, as did Romney, that AMC could outflank Detroit's "Big Three"--General Motors, Ford, and Chrysler--by taking advantage of middle-class America's move to the suburbs and its abandonment of downtown business centers. AMC proposed to win back market share by providing automobile customers with an efficient alternative to "gas-guzzling dinosaurs. " Beginning in 1955, Abernethy set about reorganizing Nash sales. He drew up a checklist to measure dealer effectiveness and traveled at least 50, 000 miles each year, visiting dealerships, working out management and sales problems, and redeploying his sales staff. A large, gregarious, hard-driving salesman, Abernethy was known to be fair-minded and to balance private ambition with consideration for dealers, whom he came to know as colleagues. He established a Dealer Advisory Board that sent dealers to regularly scheduled meetings with AMC executives where they could advise and make recommendations that directly affected manufacturing. He kept open communications, taking calls directly and responding personally to dealers' concerns. He believed that in the automobile industry, success depended as much on teamwork and a strong dealer organization as it did on a strong product line. In 1955, Abernethy was promoted to vice-president of automotive distribution and marketing for the Nash and Hudson divisions of AMC. In December 1960, Abernethy was promoted to executive vice-president in charge of both automotive and Kelvinator appliance distribution and marketing. Less than a year later, he became AMC's executive vice-president and general manager. Abernethy succeeded George Romney as president and chief operations officer, and subsequently as chief executive officer of American Motors in 1962. By 1963, the compact Rambler had led AMC to an average market share of 6. 6 percent, representing 426, 346 compact cars sold in that year and bringing the company out of debt; however, Americans' love affair with "muscle cars" eventually made the Rambler seem dowdy and pedestrian. Against Ford's new line of sportier, sexier "pony cars, " like the Mustang and Pinto, AMC's compact cars began losing market share. By 1966, despite larger engines and sportier lines and names, AMC's compact cars accounted for 9 percent of the company's sales. AMC's sales accounted for only 3. 1 percent of total market share. Although Abernethy continued to build his sales network and promote his product, AMC could not compete with either compact cars or standard-sized models. By midyear, AMC's market share fell to 2. 8 percent. In January 1967, AMC's board of directors requested Abernethy's resignation. He complied with the same grace and candor that had marked his earlier successes. He acknowledged that after a lifetime of selling cars, industry changes and pressures from the major automobile manufacturers came faster than AMC could accommodate. His commitment to a smaller, more efficient automobile anticipated later energy and environmental concerns, but at the time they could not compete with American dream cars. Following his retirement, Abernethy continued to serve on the AMC board of directors and as president of the Automobile Manufacturers Association. A heart attack six months after leaving AMC forced his resignation from both positions later in 1967, and he and his wife moved to Tequesta, Florida, where he died.

Roy Abernethy

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automobile industry executive

Background

Roy Abernethy was born in West Monterey, near Pittsburgh, Pennsylvania, United States, the seventh and youngest child of Thomas R. Abernethy, a coal miner, and Susanah A. Nichols.

Education

Abernethy attended a one-room grammar school and graduated from East Brady High School in 1924.

Later in life, while working as a mechanic, Abernethy took night courses in bridge and highway engineering at Carnegie Institute of Technology.

Career

Abernethy, whose first jobs were caring for coal mine mules and laying track with a railroad section gang, was a master salesman who had a lifelong fascination with automobiles. He began his career in the automobile industry in 1925, working as an apprentice mechanic (a "grease monkey") for 18 cents per hour at Burke Packard in Pittsburgh. He became a salesman for Packard in 1926.

Abernethy's career at Packard progressed rapidly. At one time or another, he held every sales position in the Packard organization. He moved from retail sales to district manager in 1932. In 1943, Packard transferred Abernethy to Kansas City, Missouri, as regional manager. Two years later, he was back in Pittsburgh as zone manager for Packard dealerships. He became a Packard vice-president and eastern regional manager in 1948. Abernethy left Packard management to open his own dealership in Hartford, Connecticut, later in 1948. He sold more than $1 million worth of automobiles in a single year. His outstanding success as a dealer brought him back into Packard management in 1950, as general manager for Packard New York and, later that year, as assistant general sales manager for Packard Motor Car Company.

In 1953, Abernethy joined Willys Motors in Toledo, Ohio, as vice-president and sales manager. He was recruited by George Romney to join the newly formed American Motors Company (AMC) in October 1954. American Motors had been formed by a merger of the Hudson Motor Company and the Nash-Kelvinator Corporation in May 1954. Abernethy's position as vice-president of Nash-Kelvinator sales was to rebuild the "floundering, apathetic, overlapping dealer organization so that it would contribute to, rather than detract from, AMC's sales strength. " After the merger, AMC was beset by sales complacency and poor management, a debt of $65 million, and diminished public confidence reflected in shrinking automobile sales. The Nash Rambler, a compact car that was more economical to run and maintain, was AMC's hope for improving market share, but it stood in competition not only with other Detroit models but also with AMC's full-sized Nash and Hudson models. In the automobile industry, the manufacturer sells to franchised dealers who in turn sell to the public. Abernethy's task at AMC was twofold. First, he had to streamline an inefficient and costly dealer system while building outlets for service, parts, and accessories. Second, he had to sell the concept of a compact car to AMC dealers, who were in habit of selling cars that were bigger, heavier, and more powerful with each new model. Abernethy, who rallied to a challenge, was eager to go to work for AMC. He believed, as did Romney, that AMC could outflank Detroit's "Big Three"--General Motors, Ford, and Chrysler--by taking advantage of middle-class America's move to the suburbs and its abandonment of downtown business centers. AMC proposed to win back market share by providing automobile customers with an efficient alternative to "gas-guzzling dinosaurs. "

Beginning in 1955, Abernethy set about reorganizing Nash sales. He drew up a checklist to measure dealer effectiveness and traveled at least 50, 000 miles each year, visiting dealerships, working out management and sales problems, and redeploying his sales staff. A large, gregarious, hard-driving salesman, Abernethy was known to be fair-minded and to balance private ambition with consideration for dealers, whom he came to know as colleagues. He established a Dealer Advisory Board that sent dealers to regularly scheduled meetings with AMC executives where they could advise and make recommendations that directly affected manufacturing. He kept open communications, taking calls directly and responding personally to dealers' concerns. He believed that in the automobile industry, success depended as much on teamwork and a strong dealer organization as it did on a strong product line.

In 1955, Abernethy was promoted to vice-president of automotive distribution and marketing for the Nash and Hudson divisions of AMC.

In December 1960, Abernethy was promoted to executive vice-president in charge of both automotive and Kelvinator appliance distribution and marketing. Less than a year later, he became AMC's executive vice-president and general manager.

Abernethy succeeded George Romney as president and chief operations officer, and subsequently as chief executive officer of American Motors in 1962. By 1963, the compact Rambler had led AMC to an average market share of 6. 6 percent, representing 426, 346 compact cars sold in that year and bringing the company out of debt; however, Americans' love affair with "muscle cars" eventually made the Rambler seem dowdy and pedestrian. Against Ford's new line of sportier, sexier "pony cars, " like the Mustang and Pinto, AMC's compact cars began losing market share. By 1966, despite larger engines and sportier lines and names, AMC's compact cars accounted for 9 percent of the company's sales. AMC's sales accounted for only 3. 1 percent of total market share. Although Abernethy continued to build his sales network and promote his product, AMC could not compete with either compact cars or standard-sized models. By midyear, AMC's market share fell to 2. 8 percent. In January 1967, AMC's board of directors requested Abernethy's resignation. He complied with the same grace and candor that had marked his earlier successes. He acknowledged that after a lifetime of selling cars, industry changes and pressures from the major automobile manufacturers came faster than AMC could accommodate. His commitment to a smaller, more efficient automobile anticipated later energy and environmental concerns, but at the time they could not compete with American dream cars.

Following his retirement, Abernethy continued to serve on the AMC board of directors and as president of the Automobile Manufacturers Association. A heart attack six months after leaving AMC forced his resignation from both positions later in 1967, and he and his wife moved to Tequesta, Florida, where he died.

Achievements

Abernethy dedicated career with Packard Motor Car Company and Willys-Overland. He had valuable qualities that led him to top management and leadership at American Motors Corporation. He expanded the Dealer Advisory Board by creating a Dealer's Council that met regularly with AMC's senior executives, bringing automobile sales, manufacturing, and market know-how to an open forum in order to strengthen the connection between the consumer and the manufacturer. Abernethy's planning provided AMC with the sales structure to turn a $26 million profit in 1958 after losing $12 million in 1957. In 1971, Abernethy received the "Distinguished Service" citation from the Automotive Hall of Fame.

Personality

Abernethy was remembered as heading the automaker "in the stormy post-Romney '60s" and as "big, gregarious. .. first, last and always a salesman. "

Connections

Abernethy married Florence Ruth Nunally in October 1932; they had two children.

Father:: Thomas R. Abernethy
Mother:: Susanah A. (Nichols) Abernethy
Spouse:: Florence Ruth (Nunally) Abernethy

References

American Motors Corporation: The Rise and Fall of America's Last Independent Automaker

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Roy Abernethy

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The Automotive Hall of Fame Distinguished Service citation