The Federal Motor Truck Company was a conservative corporation marketing mid-priced vehicles to conservative consumers. Federal’s mission “To build trucks that would do a truck’s work” was not enough to ensure success. Demand for the plain-looking Federal trucks bottomed out in 1932 while their main competitor, Diamond T was doing brisk business selling smart-looking trucks despite the Great Depression. As Federal hovered near bankruptcy, they wisely invested in streamline styling for the coming year.
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