Small cars such as American Bantam never made it openhanded in prewar America , but that did n’t stop people from pushing them . Among the more gumptious proponents was Roy S. Evans , who took over the moribund American Austin Car Company in 1935 with Hope of follow where Sir Herbert Austin had fail .
Evans ' hopes were tempered by the Depression , which still seemed endless , and Austin ’s formidable debts : $ 75,000 in back taxis and sake , plus a $ 150,000 property mortgage to the Pullman Standard Company . But the Union courtyard manage American Austin ’s bankruptcy experience Evans might salvage things , and give him the place for only $ 5000 immediate payment – a mere 1/2000th of its appraised value . Evans secured a $ 250,000 loan from the Reconstruction Finance Corporation , then hired the necessary endowment to serve him create a new machine called American Bantam .
Like American Austin , the Bantam was style by the esthetic Alexis de Sakhnoffsky , who conjured a newfangled front with a smooth hood and rounded wicket , plus retread buffer and rearward deck . His bill was only $ 300 , and Evans was able to revise the entire line for a mere $ 7,000 .
Indy race - railcar builder Harry Miller was hired to improve mechanicals , but want of fund confine him to a redesigned manifold . Butler ’s own engineers replaced the Austin ’s expensive roller bearing with garish babbitt bearings , and summate full - pressure lubrication , a new three - speed transmission , Hotchkiss final drive , and Ross cam - and - lever steering . They also devised a heavier frame . Engine size was unchanged , but three chief heading were used instead of two after 1939 . Wheel diameter shrank from 18 to 16 in for 1937 and to 15 inches for 1938 .
The debut 1936 Bantam line comprised a roadster and five coupe in the $ 295-$385 range . Two roadsters and three coupes were listed for ' 37 at passably high prices ( $ 385-$492 ) . Several new models arrived for 1938 , including a Speedster with pretty " Duesenberg slam " side panels , and the novel Boulevard Delivery with a rearward half - roof . For 1939 came a chic Riviera convertible , design by the untried Alex Tremulis , who later recall that it could cruise at 75 - 80 miles per hour and average out 42.5 mpg – a rather refutable claim .
Bantam production continued into 1941 , but not even the dynamic Evans could convince Americans of the value in his petite parcel . Output was about 2000 units in 1938 , just 1229 the undermentioned year , under 1000 in 1940 - 41 , then none .
The firm found irregular salvation by succeed a contract bridge to project what became the World War II Army Jeep . Bantam ramp up the first prototype , but the army was pertain about its ability to produce Jeeps in the quantities needed . Ford and Willys were supplied with Bantam ’s design and call for to present their own versions . Bantam have contract bridge for only 2,643 unit , while Ford and Willys build more than 600,000 during the war . Bantam did get a contract to build two - wheel Jeeptrailers . The company produced utility laggard until 1956 .
