Studebaker

In the mid-1950s, the Studebaker-Packard company had been losing money for a few years when they came up with the idea of abandoning the full-size car market in favor of building a new compact car. The Lark was ingeniously designed around the core bodyshell of the full-sized 1953–1958 Studebakers. By reducing the front and rear overhangs and shortening the wheelbase, the car could still seat six people comfortably and hold a surprising amount of luggage. Sales of the Lark were good for the 1959 and 1960 model year, thanks to the fact that Studebaker had obtained "dual" dealerships with dealers of the Big Three manufacturers. However, most of these dealers dropped the Studebakers under pressure from the Detroit manufacturers once they released their own compacts in 1960 and 1961. Those who did not drop Studebaker outright often put more effort into selling their other product lines.

In an effort to reverse the downward sales trend created when Detroit rolled out its own compacts in 1960 and 1961, the Lark received a striking yet cost-effective 1962 update. The body was lengthened and the interior modernized. Sales improved drastically and despite a 38 day strike, the company sold over 90,000 units, far more than had been sold in 1961.

In 1963, the third generation Lark was introduced. The hood, roofline and trunklid were flattened, resulting in the most mainstream looking Studebaker since 1946. The new look debuted along with the company's plan to phase out the Lark name entirely. The lowest-priced models were renamed Challenger, while the Commander name replaced the Regal trim level. However, sales kept decreasing and on December 9, 1963, the closure of the South Bend plant was announced. Production continued at Studebaker's Canadian plant in Hamilton, Ontario until March 1966.