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1905 REO Model B

Ransom Eli Olds was successful in selling his Curved Dash Oldsmobile, but when he resisted dropping it in favor of a more modern, expensive automobile he was forced out of his own company. Unable to use the Oldsmobile name, he started a new company using his initials. In August of 1904, Ransom E. Olds founded the Reo Company. The REO Company manufactured automobiles and trucks from 1905 through 1936. In 1907, it was one of the top four automobile manufacturers in the United States, based on sales. After 1908, the demise of the REO Company began due to competition from Ford and General Motors.

The Depression and a courageous effort to offer vehicles in multiple price ranges ultimately led to the downfall of the company. The company was under the direction of Richard H. Scott from 1915 through 1933. The company was profitable from 1915 through 1925, but after 1933, Ransom Olds came out of retirement to get the company back on track. He resigned a year later and in 1936 the REO Company ceased production of automobiles.

by Dan Vaughan

Runabout

The Olds Motor Works, founded by Ransom E. Olds, had been producing the popular curved-dash Oldsmobile for several years when, in 1904, Mr. Olds picked up and left to form the Reo Motor Car Company of Lansing, MI.

This is a 1905 Reo Model B Roadster, with a folding rear seat. It was purchased from the 2nd owner in 1952 after being stored since 1930. At the time, there was no interest to restore the car and it was stored again until 1995 when the present owner got the car running and showed it for the first time. It did not show well, so it was stored again until The Cadillac Shop performed a full restoration in 2005.

This Reo is powered by a single-cylinder, 5-horsepower engine coupled to a 2-speed manual transmission.

By 1907, the Reo, being known for its durability and steadily rising sales, made it the third-largest selling car in the United States - right behind Ford and Buick. In 1910, Reo raised the engine horsepower to 12 hp and the single-cylinder engine had seen its last day.