Offerings shuffled again for 1935's "second series." Coupes and convertibles looked much as before, but sedans began backing away from Blue Streak styling, which was becoming a bit dated anyway. A smaller new Standard Six arrived with a 60-bhp, 169.6-cid engine and Blue Streak styling on a trim 111-inch wheelbase. It lacked some big-Graham technical features, but sold well. A good thing, as eight-cylinder sales declined sharply. So even though model-year volume went up to near 18,500, Graham was now feeling a severe financial pinch.
Accordingly, the firm abandoned Eights for 1936 but offered America's first supercharged six: a 217.8-cid unit that would be Graham's mainstay engine right to the end. It arrived in 115-inch-wheelbase Supercharged and unblown Cavalier series sharing Hayes-built coupe, sedan, and convertible bodies with Reo's 1935-36 Flying Cloud, an arrangement worked out during 1935. The two companies never "married," but Graham used Reo bodies through 1937, which resulted in some very ordinary looking cars. Graham's price-leading 1936-37 Crusader used 1935 tooling, which was later sold to Nissan of Japan to bring in needed cash. And Graham needed that, losing $1 million in 1936 despite higher calendar-year sales of over 16,400.
Hoping for a miracle, Graham unleashed the radical "Spirit of Motion" for 1938, a blown and unblown four-door sedan with a sharply undercut front that soon earned the dubious nickname "sharknose." It was Northup's last design before his untimely death in 1936. (Ray Graham had passed away in 1932; he was only 45.)
Graham was trying to be the style leader it had been with the Blue Streak, but the public didn't buy it -- literally, as model-year production ended at 5020. A "sharknose" two-door sedan and "Combination" club coupe arrived for 1939, when running boards were eliminated. Horsepower remained 116 supercharged, 90 unblown, and all models offered Deluxe and better Custom trim. Despite impressive supercharged performance (10.9 seconds 0-50) and fuel economy of up to 25 mpg, the "sharknose" remained a poor seller. It thus departed after 1940, seeing little further change save slight horsepower gains (to 120 and 93). Respective 1939-40 model-year production was 5392 and an estimated 1000.
By now, company president Joseph Graham had spent a half-million dollars of his own money to keep his firm going. He needed something new, but how to pay for it? The answer came in 1939 with Norman De Vaux, who'd failed with automobiles marketed under his own name. De Vaux had bought up the tooling for the late 1936-37 Cord 810/812 Westchester sedan, and had talked equally struggling Hupp Motors into building a modified version with rear-wheel drive instead of front drive. Joe Graham proposed building the bodies, provided his company could sell its own version of the car with Graham power. Aside from that and minor trim differences, the resulting Graham Hollywood and Hupp Skylark were identical. The Skylark was announced first, in April 1939 at the New York World's Fair, though that proved premature. Gearing up for production took longer than expected, so neither model was built in significant numbers until May 1940.
Like Hupp, Graham planned to offer a sedan and convertible, but only one Hupp convertible was ever built and maybe up to five Grahams. Production Hollywoods carried Graham's own 120-bhp supercharged six, and thus cost a bit more than Hupp's unblown Skylark: initially $1250 versus $1145. Both models rode a 115-inch wheelbase, 10 inches shorter than the parent Cord's. To fit their tall engine beneath the Cord's lower hoodline, Graham engineers offset both carburetor and air cleaner. Both versions wore a handsomely reworked face (by the renowned John Tjaarda) with a double grille (fully chromed on Hollywoods), exposed bullet headlamps, and nicely shaped front fenders.
Unfortunately, the old tooling was simply unsuitable for volume production -- the same thing that had tripped up the Cord. The roof alone comprised seven separate panels. Joe Graham hoped to simplify matters, but was distracted when he agreed to take over Skylark production, which necessitated a complete overhaul of Graham's assembly line and added further cost and delay.
Though Hupp called it quits in the summer of 1940, Graham pressed on for '41, adding an unblown Hollywood priced at just $968 and cutting the price of the supercharged model to $1065. Horsepower was upped slightly on both engines. But it was all to no avail, and Graham finally gave up the auto business, too, in September 1940.
Ironically, departing the car business proved quite timely, as Graham prospered through World War II on $20 million of government defense contracts. Joseph W. Frazer then bought the firm in 1944. His namesake Frazer car was built as a "Graham-Paige" product in 1946-47, though at Kaiser's Willow Run factory rather than G-P's old Dearborn plant. In early 1947, Graham-Paige sold its remaining automotive interests to Kaiser-Frazer, and in 1952 quit farm equipment as well. G-P then dropped "Motors" from its name and became a closed investment corporation. It later operated Madison Square Garden and owned several professional New York athletic teams. All these endeavors proved far more profitable than carmaking had ever been.