Penn Line's final product introduction was in 1962. It was not model train related at all. As I said earlier, most model train companies had declining sales during this period.  A number of them tried to manufacture slot car sets. There were certainly similarities that made the switch natural.  There were also similar problems.  For instance there were various scales competing in the new market.  Briefly consideration was given to making cars in the 1:87 that HO used. This would have allowed a railroader to place a speedway on the same layout.  It was quickly realized that the technology would not support the small motors needed. Still Penn Line had always liked the fact that if a layout was small enough it could be kept up permanently.  Consequently for the slot cars Penn Line chose a scale that was smaller than most other companies used. A single loop or figure 8 over and under track could easily be set up on a 4'x8' piece of plywood.
    The decision to make the slot cars put Penn Line in the position of expanding into a then expanding market.  This in contrast to the train set problem of expanding into a contracting market. Penn Line was giving consideration to slot cars at least as early as 1960.  Bob Faust was an Indianapolis 500 fan.  He realized that Penn Line was too small to do television advertising that some of the larger companies would likely do. To distinguish the Penn Line product he thought a big name endorsement would be important. At this point he made a really good decision. A. J. Foyt had won several championships in 1960. In 1961 Foyt was the Indianapolis 500 winner. Bob was able to sign A. J. Foyt within months of the 1961 victory. During the summer of 1961, A. J. Foyt came to Boyertown for some publicity.  This was already too late to get the product out by the crucial 1961 Christmas season.  But the endorsement was a good one A. J. Foyt was not a flash in the pan.  This endorsement was not only good at that moment, but would have paid off even more when Foyt won the Indianapolis 500 again in 1964, 1967 and 1977.  I say "would have paid off" if Penn Line had still been in business in 1964, 1967 or 1977. Bob Faust had signed a four time Indy winner within months of the first win.
    From this point on all the creative energy of Penn Line was directed to the slot cars.  Really a lot of creative detail went into the design. The design approach was similar to that of the original locos. Attention to detail. Small individual decals were used on the car bodies. The driver's helmet was painted. The tires were replaceable and with the use of a magnifying glass you could read the word Firestone on each. The advertising brochure stated that harder of softer tires could be changed to control skidding. The windshield, driver's head, exhaust, roll bar were applied as separate pieces.  The electrical contacts could be replaced without tools. A lot of thought went into the detailing.
    But, (there is always a but) the cars had some problems. The narrow sleek Indy body did not leave much room for the motors.  The Penn Line locomotives used Pittman motors that were virtually trouble free for most users. If you have a fifty year old Penn Line loco that does not run, the problem probably is not the motor. There was no Pittman motor small enough for the Indy cars. Penn Line chose a Japanese made KSS motor that would fit. The motor is about the size of the tip of an adult's thumb, just the part covered by the thumbnail.  There was just not enough room for a larger motor.
    The cars were made of very lightweight plastic. Penn Line had the skills to make the cars of heavier cast metal. After all metal casing was their original specialty. A heavier car would have better electrical contact. A heavier car would have given better traction for those finely detailed Firestone tires. But a heavier car would have needed a larger motor and they just could not find a better motor that fit in the sleek body. There were other problems. The cars did not stay on the track very well. Remember those electrical contacts that could be changed without tools?  You would be very sorry if you tried this. More than likely the small spring underneath would pop off and be lost.
    Still the show had to go on.  Too much was resting on the success of this one product. It was hoped that the true hobbyists would appreciate the details directed at them. The brochure carefully stated "It takes real skill and lots of practice to be a champion."  Another place in the brochure stated "it takes real skill and practice to navigate the turns to keep from rolling off the course."  So what if the car did not stay on the track. The brochure seemed to be saying  that was part of the Indy "fun." It seemed to be saying that the problem was that the user lacked the skill and practice. Unfortunately the "racing type speed controls" and the lack of sufficient traction did not respond to "skill and practice."
    For the aspect of sales, the first year was a success. Enough racing car sets were sold to allow the company to hang on a little longer.

Penn Line went bankrupt and closed in 1963. Assets exceeded liabilities. There was nothing left for the stockholders. Some of the assets related to the steam locomotives were sold to Bowser in Montoursville, PA To this day Bowser markets kits derived from the Penn Line designs and has parts that are compatible with the Penn Line locomotives.

Penn Line's founders always thought of themselves as hobbyists. They liked the things that hobbyists liked. They like to be able to repair their products.  They made fairly priced replacement parts available. And they stood behind their products. If one did not work because of some manufacturing flaw, they made good.  In the 1958 catalog the company made explicate their guarantee. "Your train set is guaranteed against defects in materials and workmanship for life.  PENN LINE is the only manufacturer with enough confidence in the quality of its products to make this unique guarantee."  Just pull out any guarantee for any other product that you have ever purchased.  I can "guarantee" that you have probably never seen a guarantee more honest than this. Penn Line fully and honestly intended to honor this guarantee. And they intended it to apply to all their products. It was never a problem before the racing cars. The locomotives rarely had a problem with defects or workmanship. Sometimes one would be dropped and need repair, but the user knew the damage was not caused by a defect.
    The racing cars were only sold in 1962 and part of 1963.  I once talked to a Penn Line worker of that era about the problem. He said that at Penn Line "it just rained racing cars being returned for repair at Penn Line's expense."  They just could not handle the expense of the repairs or do a redesign quickly enough.  33 years later Linwood Stauffer commented in the Boyertown Times on November 30, 1995. He said "They tried to get into what they call the slot racing cars, and we didn't know what we were doing and bought some motors that were no good from Japan. It just put us into bankruptcy.  We were good technicians, but we weren't good business people. None of us actually had a business background, but of course you learn after awhile.