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in December 1997. Cendant was hit hard in April 1998 when it was discovered that CUCs financial statements had been overstated by hundreds of millions of dollars in both revenues and profits. Following this discovery, the market value of Cendant dropped more than 40%, threatening the credibility of both the company and chairman and CEO Henry Silverman and spurring a barrage of questions from numerous constituencies. How could a company and its CEO not have conducted adequate due diligence to uncover CUCs fraudulent reporting of this magnitude before the transaction was completed?Silverman realized that, to regain credibility, complete honesty and financial transparency was the only viable course of action. He established the mantra, Tell the truth. Tell it all.
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The company hastened to assure customers, however, that the Roamer's high quality would not be impacted by lower costs. Mechanical upgrades went along with the lower prices, as well. First, there was a new engine for Roamer sports models the Rochester Duesenberg, which Rochester Motors Corp. began producing in 1920. It was a 4 cylinder, 75 hp motor with horizontal valve action. Although the earliest engines lacked sufficient power, a later redesign increased the size slightly, and with the larger size came greater power and diminished engine noise.
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