The American REO Motor Car Company was founded in 1904 in Lansing, Michigan, by Ransom Eli Olds, who seven years before had created the Olds Motor Vehicle, subsequently Oldsmobile, from which he retired in 1904 to establish the new company.
REO production began with two models, powered by a 1-cylinder and a 2-cylinder engine. The single cylinder model delivered a power output of 8 hp and could reach a top speed of 45 km/h. The engine was mounted transversely under the seats, and a fake bonnet had purely aesthetic purposes. The model sold for 685 dollars. Bigger and faster, the 2-cylinder model boasted a top speed of over 60 km/h and had room for 5 occupants. Both models were simple, affordable, efficient and fuel sparing.
Production of these two models went on for more than 5 years, aside from an unsuccessful attempt to launch a four-cylinder car (1906). 1911 saw the first signs of a renewal process that would soon lead to the introduction of new models. The first to be unveiled was the REO the Fifth, a four-cylinder vehicle with 3700 cc displacement, camshaft with valve overlap, 4-speed gearbox.
This was followed by a six-cylinder model, which continued to be sold until 1920 and was redesigned in 1921 to create the 5-litre Model T. Thanks to its attractive appearance, good performance and affordable price (1500 dollars), this model was highly successful. 1927 saw the advent of the popular Wolverine and the Flying Cloud, both models equipped with a six-cylinder engine. The Flying Cloud featured hydraulic brakes on all four wheels (an innovative development for the REO) and had a 4-speed gearbox with facilitated gear changes. In this case too, the models were sturdy and reliable, so much so that they were adopted by the Police.
In the Thirties, the company focused on high-end models and in all likelihood it was this decision, together with the onset of the Great Depression, that led to the bankruptcy of the company. A new version of the Flying Cloud, unveiled in 1931, in fact, had an eight-cylinder Continental engine, and was soon followed by the launch of the pretentious Custom Royale, also available with automatic transmission. Both models did not sell well and REO tried to remedy the situation by marketing a simplified and impoverished version of the Flying Cloud, but it was too late, and in 1936 car production was dropped. REO survived as the commercial vehicle division of the White Motor Company.
