Evening star., 1940-07-10
Auto Plants Closed
Only for Changes
To New Models
Scope Of Defense Plans
Cont Be Learned in
Less Than Six Months
Special Dispatch to The Star.

special Dispatch to The Star.
DETROIT, July l0.-Contrary to
a widely held popular notion that
auto plants are being shut down for
conversion to munitions manufac-
ture, the prosaic truth is that only
the normal model change over is
now in process, reports Rupert LIE
Grand, Detroit editor of American
Machinist. So far, he says, only
scattered and now Insignificant edu-
cation orders have been placed in
this area for shells and machine
guns. A few thousand trucks have
been built, but the Army's require
ments for, say, $4,000 vehicles in
the first year could be handled by
any of several units without great
effort. Other items are still in the
planning stage.
From what can be learned locally
it appears that all of six months
will pass before the scope of the
national defense program can be
determined and contracts let,
Meanwhile there has been no let
up in the work of estimating equip
ment needs and of planning produc-
ton techniques for components that
the Government may logically ask
local concerns to furnish. Ford is
reported continuing activity on tool
ing methods for an aircraft motor
and stands ready to produce it sole
ly for American use when asked to
do so. Chrysler has an ordnance
division hard at work estimating
certain items. Packard is ready to
60 on mass output of marine mo-
tors and possibly a related type of
aircraft motor. But these projects
cannot become actualities until def
mite contracts are received
Activity at Plants.
But defense planning is only
small part of activity in the auto
plants at the present time. Mill
wrights, engineers and die shop
personnel are the chief classes of
employees in evidence in several in
dependent plants that closed down
at the end of June. Three General
Motors divisions were scheduled to
60 down last week or this week
Some plants will reopen as early as
July II after shutdown of only
two weeks. New models are likely
to appear on the streets by August
10.
The chief notifications, in 1e41
will center about extensive body
changes. Observations in local die
shops and in the auto plants bear
out this contention. Generally
speaking, styling for l941 will follow
the example set by General Motors
torpedo models. Mechanical changes
will not be extensive.
G. NJ. Diesel Division Expands.
BY the first of the year the De-
troit Diesel engine division of Cen
eral Motors will have in operation
a new 600 by 280 foot addition that
Will double its present productive
capacity of 5000 small engines year.
ly. The product of the Detroit plant
goes to a variety of outlets and
consists of one, two, three, four and
six cylinder models, ranging from
Is to l65 horsepower. 1t is under
stood that the new addition is re-
quired solely for expanding COM
mercial business and is not predi-
Gated upon anticipation of national
defense needs.
Considerable steel tonnage has
been placed for 1941. models. but
local vendors regard present orders
as conservative on a Today to s.
week basis, because the mills were
able to anticipate demand better
than prior to the swift upsurge last
fall. Prices remain unchanged. Ap-
parently there is no fear that prices
will be raised or else buyers would
be stampeding the market. 1t will
be emembered that the Government
turned thumbs down on a price in
crease a year ago.
Auto dealers are moving present
stocks with the threat of a price
increase next year, and manufac-
turers apparently condone the prac-
tlce as smart merchandising. But
If steel does not 60 up and other
commodity prices do not get out of
line, it may be argued that there
will be no appreciable price ad-
vance on 1941 models. At the pres
ent time auto plants anticipate
good 1941 season because of in
creased spending brought about by
the national defense program. Com
petitive reasons may prevent taking
advantage Of the market.