[1] When Studebaker-Packard's financial situation worsened in 1955 and 1956, company leaders decided, rather than meet the "Big Three" automakers head-on, to compete with low-priced, basic transportation.

Using the Studebaker Champion's two- and four-door sedan and two-door station-wagon bodies, the company created a vehicle which could undercut the prices of minimal-frill competitors the Chevrolet 150, Ford Custom and Plymouth Plaza.

The Scotsman had features reminiscent of the "blackout" cars of the shortened 1942 model year, from which chrome trim was eliminated by war-materials rationing, though such refinements have been added by latter-day enthusiasts.

Dealers were instructed to avoid installing extra-cost accessories, on the rationale that a buyer who wanted frills on an economical car could buy a regular Champion for an extra $200 (equal to $2,170 today).

Priced below the competition from $1,776 (equal to $19,267 today) for the two-door sedan, Scotsman sales were projected at 4,000 cars for the short 1957 model year.

[citation needed] The Scotsman truck, unlike the car, was continued in 1959, exchanging its plaid decal nameplates for chromed "S" and "Studebaker" emblems.

An inexpensive "Deluxe Equipment Group" enabled buyers to fit their Scotsmans with the same grille and front sheetmetal as the regular Studebaker trucks.

[citation needed] The Scotsman was replaced for the 1960 model year by the Studebaker Champ pickup, which was based on the same truck chassis but with a cab derived from the contemporary Lark four-door sedan.