A Profile of Federal Manufacturing

Posted on November 1, 1985 by LCT staff

Federal Manufacturing was founded in 1984 by Earle Moloney, president of Moloney Manufacturing Corporation and one of the pioneers in the evolu­tion of limousine design. The com­pany literally leaped into the top ten by producing 260 Lincoln and Cadil­lac units in its first year. Federal has already outgrown its leased manu­facturing facility in Margate, FL, and operations were recently moved to Schaumburg, IL. Federal now occupies the 125,000 square foot plant used by Moloney Manufactur­ing before that company moved in­to a new world headquarters in Chicago.

Earle Moloney has established a 1,000 limousine objective for Fed­eral in 1986, with the product line to incorporate quality features based on Moloney's extensive manufacturing experience. Reliability and ride-stability are two of the main goals in the engineering of com­ponents used in Federal limousines, and Moloney insists that the vehicles are continually toad-tested to insure product quality.

Federal has announced a new and innovative limousine model for '86. A 50- or 54-inch elongated Lincoln, the unit will be available in either black or white, with blue in tenor, and will include a heavy duty package, rear companion seats, choice of center or side mounted console with oil rubbed finish, rear heating and air conditioning system auxiliary electric cooling fan, rear compartment reading lamps, and vinyl roof. The console will contain heating controls and will be set up for the convenient installation of a television and video recorder at a later time.

The Federal Lincoln will be built on a production line basis using the same quality standards that have characterized both Moloney and Federal limousines in the past. "By using higher cycle production tech­niques, with adequate tooling, use of jigs and fixtures, control of limited options, and lower lead time re­quirements, these Moloney designed units are the answer for the limousine operator who wants a lower-priced unit he can finance, and add certain options to later," comments Gordon R Johnson, vice president of sales. This model will be available through any authorized Lincoln dealer.

Federal will continue to offer its basic product line of luxury Lincoln and Cadillac limousines with a wide range of options and color selec­tions. Available configurations in elude a thirty-four inch corporate unit, and 48-, 50-, and 55-inch stretch-lengths in both single and double-cut versions.

Among the features incorporated in Federal Limousines are elec­trically-operated center divider win­dows, independent air conditioning systems for front and rear compart­ments, rear reading lamps, inter com, and separate radio systems front and rear. Walnut side and center consoles can be ordered with either an oil-rubbed or high gloss finish.

"As far as quality is concerned," says plant manager Nick Terhaar, "we are among the best. Our weldments, roof rail and rocker panel reinforcements, the rear floor construction, center body panel installa­tion, all electrical and mechanical details, plus over-all trim and finishing are all in accord with original equipment standards or better."

An intangible feature on all Federal limousines is that they are completely covered with product liability insurance, unlike limousines from some other manufacturers. This feature is of great importance to limousine operators," according to Federal president James L. Cent­ner. "Insurance carriers are in­creasingly reluctant to even offer minimum liability coverage to mar­ginal manufacturers or converters whose facilities, production stan­dards, qualify controls, and warran­ty services are not capable of critical review. Many limousines now in service are not covered. Typical garage-keepers insurance does nothing for the end-user after the vehicle title passes. If someone is injured due to a production de­fect, that coverage is void. One of the first questions an operator should ask is about the existence and extent of product liability in­surance held by the manufacturer. This coverage is expensive, with rates increasing on an annual basis due to the number of units out on the streets. That expense is the reason why marginal converters do not have coverage. A second rea­son is that some cannot qualify for coverage," Centner explains.

So far, Federal's distribution has been handled by a select few deal­ers. In view of the rapid expansion of the company's manufacturing capability, plans are to expand the dealer network, and to that end dealer inquiries are invited. Dealers are expected to represent Federal exclusively in the limousine field, of­fer good service capability, and be financially sound.

In addition to mounting an ag­gressive national marketing and advertising campaign, Federal Manufacturing Corporation plans to exhibit at the Limousine & Chauffeur Shows in Las Vegas in November, and Atlantic City in December. Ex­hibits are also planned for some of the important national automobile shows in early 1986.

Completion of the renovation of the Schaumburg plant to accommo­date the three production lines devoted to Federal units brings to a close the planned expansion of Moloney Manufacturing Corpora­tion. "It is funny," comments Cent­ner, "that in a period where we were investing over five million dollars in a broad scale expansion of facilities, rumors were out to the effect that we were really troubled by a staggering backlog. Trouble like this everyone should have — we have a great new 245,000 square foot facility in Chicago, a newly laid out 125,000 facility in Schaumburg, and orders through our dealer organization that take us well into the 1986 run. With the new Federal unit, we are reacting to the dynamics of change in this fast growing industry and market. Earle Moloney has always correctly sensed market trends in this limited niche of the automobile industry, and we think he is correct again. We see nothing ahead but expansion and continued growth."

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