Tony, you're welcome for the information. Sounds like you already did some research before posting, so you know what to look for. Just so you know, the older Kenmore canisters from the 70's & early 80's that had no speed control & used the 5033 bags have the same identical cordreel & Ametek single speed motor your Kenmore 3.2 uses. You might have to attach a little bit more wire to the 2 wires coming from the cordreel to hook it up, but otherwise it will work the same. So keep an eye out for those older models at yard sales & repair shops that are good for parts machines.
One thing you were probably not aware of though - your Kenmore was made by Whirlpool, NOT Panasonic. Sears forced Birtman Electric out in the late 1950's & had Whirlpool take over their vacuum & appliance manufacturing. Take a look at Kenmore & comparable Whirlpool models from the 60's, 70's & 80's, & it's easy to see their lineage comes from the same company. The 116 model prefix was used by all 3 companies, so that isn't a accurate way of determining the manufacturer, in this case the date code on the motor or other parts would be more accurate. Panasonic bought out Whirlpool's manufacturing business & took over making Kenmore vacuums in 1992 if I remember correctly.
As for your neighbor's assertion that the 116 prefix was used for ALL Kenmore vacuums, that is also incorrect. It's a well known fact that Sears contracted to many manufacturers for their vacuums. Birtman/Whirlpool/Panasonic may have made their most common lines - especially their canisters - but they also contracted to LG, Electrolux AB, Sanyo, PhoneMate & Ryobi (Singer) for their other lines they carried from time to time. In fact, they used so many manufacturers there really should be a thread devoted specifically to Kenmore vacuums showing pictures of the models & the date & manufacturer so that history is documented for future collectors to know.
By the way, one other way you could keep the cord from retracting is to use a plastic clip for chip bags. They are easy to find at most dollar stores, & would save having to knot the cord & unknot it when done using the vacuum. Also, considering your vacuum is from 1985, one thing you should STRONGLY consider doing is to install a new set of carbon brushes & run a armature seating stone on the motor. Chances are, with the age of the vacuum & normal usage, those carbon brushes in the motor now are worn down to nearly nothing. If they wear down too much, it could cause permanent damage to the motor. So if you want to keep this vacuum running a long time, this would be good preventative maintenance to perform.
Rob