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Reo Motor Company

REO Motor Car Company
Automobile Manufacturing
Industry Automotive
Founded 1905; 112 years ago (1905)
Founder Ransom E. Olds
Defunct 1975; 42 years ago (1975)
Headquarters Lansing, Michigan
Products Automobiles, buses, trucks

The REO Motor Car Company was a Lansing, Michigan-based company that produced automobiles and trucks from 1905 to 1975. At one point the company also manufactured buses on its truck platforms.

Ransom E. Olds was an entrepreneur who founded multiple companies in the automobile industry. In 1897 Olds founded the Olds Motor Vehicle Company (later, as Oldsmobile, to become a part of General Motors). In 1905 Olds left Oldsmobile and established a new company, REO Motor Car Company, in Lansing, Michigan. Olds had 52 percent of the stock and the titles of president and general manager. To ensure a reliable supply of parts, he organized a number of subsidiary firms like the National Coil Company, the Michigan Screw Company, and the Atlas Drop Forge Company.

Originally the company was to be called "R. E. Olds Motor Car Company," but the owner of Olds' previous company, then called Olds Motor Works, objected and threatened legal action on the grounds of likely confusion of names by consumers. Olds then changed the name to his initials. Olds Motor Works soon adopted the popular name of its vehicles, Oldsmobile (which, along with Buick and Cadillac, became a founding division of General Motors Corporation).

The company's name was spelled alternately in all capitals REO or with only an initial capital as Reo, and the company's own literature was inconsistent in this regard, with early advertising using all capitals and later advertising using the "Reo" capitalization. The pronunciation, however, was as a single word. Lansing is home to the R. E. Olds Transportation Museum.

By 1907, REO had gross sales of $4.5 million and the company was one of the four wealthiest automobile manufacturers in the U.S. After 1908 however, despite the introduction of improved cars designed by Olds, REO's share of the automobile market decreased due in part to competition from emerging companies like Ford and General Motors.


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