[2] During 1907 it became obvious that Garford and Studebaker would intensify their cooperation and that delivery of frames for Rainier was not secure.

A new plant was erected in Saginaw, Michigan which already was considered an early center of automobile manufacturing.

After the assembly of 300 automobiles in Saginaw, Rainier was petitioned into involuntary bankruptcy because as General Manager Paul Lineberger explained, there was not enough cash to meet wages and material cost, even though assets were in excess of liabilities.

John Rainer could not raise the money to save his business, and William C. Durant bought it from Comstock for General Motors.

In September, 1910, Durant had to leave GM after financial trouble arose after his aggressive policy of acquisitions of many companies.

The Rainer automobile was produced until 1911, then production of the Welch-Detroit, was transferred from Pontiac, Michigan to Rainier's Saginaw factory.