Upon joining Packard from appliance manufacturer Hotpoint in 1952, president James Nance unveiled a new strategy for success. The plan sought to distinguish the entry-level series from the larger Packards, both visually and in prestige. Re-introducing the Clipper name, he applied it to the least expensive Packards, although his desire for a separate marque name was never fully implemented. Clippers had simple trim, smaller engines, and fewer amenities, while the uppermost Patrician series featured longer wheelbases and more elegant ornamentation.
For 1954, Packard lines were further differentiated. The Clipper, while retaining the family grille, received entirely new rear fenders and was offered in three subseries to compete in the mid-priced market. Least expensive was the Clipper Special, followed by Deluxe and Super Clippers. At the top of the Clipper Super line was the Panama, a handsome hardtop coupe. Just 3,618 were built. The Panama was powered by the mid-size Packard straight eight, a 327-cu. in. version making 165 bhp.