The story
The company was founded in 1964 by Roger Curtis and Lee Yurada, technicians at the Douglas Aerophysics Laboratory in nearby El Segundo, California. Slot cars were at the height of their popularity in Southern California at the time, so Curtis and Yurada decided to open a slot car track as a side business. Their experience in fabricating aircraft parts soon led them into producing slot car parts and accessories. So successful was the venture that it turned into a full-time business which they named Associated Electrics. The new company specialized in the manufacturing of a full line of slot car parts, chassis and accessories.
The business had grown by 1969 and was located in a small building in Paramount. Personal issues arose between Curtis and Yurada, leading Curtis to approach early RC racer Gene Husting in hopes that Husting would buy Yurada's share of Associated. The popularity of slot cars was on the wane, but Husting was certain that radio control would flourish as the technology grew. Almost as if in anticipation of the fact, Associated had just introduced a 1:8-scale gas-powered racer, the RC1. Designed by Mike Morrisey, it soon became the most successful car on the circuit. Husting agreed to the buyout in 1970. Still a small business, Associated had only six employees: Husting, Curtis, Husting's wife Midge, and three others.
From Wikipedia’s article on Associated Electrics, shared under CC BY-SA 4.0.3