Studebaker`s total number of cars and trucks sold increased from 92,434 in 1961 to 99,476 in 1962, however,
in 1963 there was a 17% decline in auto sales. This was partly due to the increased competition in the compact car
market. Chevrolet now had the Corvair, the Chevy II, and a new model, the Chevrolet Chevelle built on a 115 inch
wheel base. Also at the time, American Motors brought out updated versions of its Rambler Classic and Ambassador
models. Studebaker faced a big task to gain more share of the market with so many other auto builders putting their
products out to the public.
In December, 1963, Studebaker announced that it would be stopping automobile production in the United States.
Circumstances made it unfortunate for the company but it was too late to turn things around. The company divisions
that Egbert had brought in made combined earnings of around $11 million, but the automotive division lost nearly
Further to bad news for Studebaker, later in 1963, Egbert found out he had cancer which forced him into at least
two operations. In November 1963, the Board asked that he take an indefinite leave of absence. The man who was driven
to save the Studebaker car division would be stepping down.