In 1930 Franklin introduced a new type of engine which ultimately produced , with one of the highest power-to-weight ratios of the time. In 1932, in response to competition amongst luxury car makers, Franklin brought out a twelve-cylinder engine. Air cooled with 398 cubic inches (6.5 L), it developed 150 hp (110 kW). It was designed to be installed in a lightweight chassis, but the car became a behemoth when Franklin engineers were overruled by management sent in from banks to recover bad loans. Although attractive, the Twelve did not have the ride and handling characteristics of its forebears. Unfortunately, this was simply the wrong vehicle to be building after the crash of 1929 and the Great Depression that followed. The cars sold poorly and came nowhere near to recouping the company's investment. The company declared bankruptcy in 1934.