Classic Car Wiki

Introduction to REO Motor Car Company

The REO Motor Car Company was an American automobile and truck manufacturer founded in the early 20th century. Named after its founder, Ransom Eli Olds (R.E.O.), the company played a major role in the development of early American motor vehicles. Although REO’s car production ceased by the 1930s, its trucks and commercial vehicles continued for decades, leaving a lasting legacy in transportation and manufacturing history.

Founding of REO (1904)

Ransom E. Olds, already famous for founding Oldsmobile in 1897, left the Olds Motor Works after a management dispute. In 1904, he established the REO Motor Car Company in Lansing, Michigan, using his initials for the brand name.

Initial Success

The company quickly became a major player in the American automobile market. By 1907, REO was producing thousands of vehicles annually and ranked among the top four U.S. automakers.

Early Automobiles (1905–1915)

REO gained a reputation for building reliable, high-quality automobiles. Their early models were simple yet robust, aimed at middle-class buyers.

Popular Models

• REO Model B and Model D – Among the earliest cars produced, known for mechanical simplicity.
• REO the Fifth – Launched in 1912, this model was named for being the fifth design iteration. It became one of REO’s most successful cars, known for its elegant body and dependability.

Engineering Innovations

Ransom Olds was a forward-thinking engineer. REO was among the first companies to use shaft drive and a steel frame chassis, which were considered advanced for their time.

Shift Toward Trucks (1920s–1930s)

By the 1920s, the passenger car market was becoming highly competitive. Companies like Ford and Chevrolet dominated with mass production, which REO couldn’t match. As a result, REO shifted its focus toward commercial trucks — a decision that would define the company’s future.

REO Speed Wagon

Introduced in 1915, the REO Speed Wagon was a light-duty commercial truck that became immensely popular. It is widely credited as the precursor to the modern pickup truck. Known for its durability and versatility, the Speed Wagon was used for deliveries, transport, and utility work across America.

The Speed Wagon name would later inspire the name of the rock band REO Speedwagon, which brought further pop culture attention to the brand in the 1970s and ’80s.

End of Passenger Car Production (1936)

In 1936, REO officially ceased production of passenger cars to concentrate entirely on trucks and commercial vehicles. While its cars were respected, they could not compete with the economies of scale achieved by the Big Three automakers.

Notable Final Models

• REO Royale – A luxury car introduced in 1931 with advanced engineering and Art Deco styling. It was REO’s attempt to re-enter the upscale market but was released during the Great Depression and failed to achieve significant sales.

Commercial Truck Success (1937–1950s)

Focusing exclusively on trucks, REO became a respected name in the commercial and military sectors. REO trucks were known for toughness and reliability, and were used in public works, delivery fleets, and military operations during World War II.

Military Contributions

During World War II, REO produced military transport vehicles and other essential equipment for the U.S. armed forces. Their production facilities played an important role in wartime logistics.

Post-War Decline and Mergers (1950s–1975)

The post-war era brought fierce competition and changing market demands. Although REO trucks remained well-regarded, the company struggled financially. In 1954, REO was sold to the White Motor Company, a larger manufacturer of trucks.

End of the REO Brand

Under White’s ownership, REO-branded products gradually faded. The final trucks bearing the REO name were produced in the 1960s. In 1975, the remnants of the REO division were sold off, effectively ending the REO name in manufacturing.

Legacy of REO

Though the REO brand disappeared decades ago, its impact remains significant. Ransom E. Olds is remembered as one of the pioneers of American automotive history, with contributions that shaped the industry’s early development.

REO Speed Wagon in Popular Culture

The name REO gained a second life through the success of the rock band REO Speedwagon, which named itself after the iconic truck. While unrelated to the company’s operations, the band helped preserve awareness of the REO name in popular culture.

Collector Interest

Surviving REO vehicles, particularly the Speed Wagons and Royale luxury cars, are highly prized by vintage car collectors. Restored examples can be found in museums and private collections across North America.

Conclusion

The REO Motor Car Company played a crucial role in the early 20th-century automotive boom. From reliable passenger cars to iconic commercial trucks like the Speed Wagon, REO demonstrated American engineering ingenuity and adaptability. Though the brand no longer exists, its legacy endures through its vehicles, its founder, and its influence on the history of transportation.