Evening star., 1941-07-27
Auto Industry Ends
Epocha| Year; Faces
Defense Problems
5,2O0,O0O-Cor Output
Achieved os Armament
Program Is Assumed
By DAVID J. WILkIE,

BY DAVID J. WILKIE.
Special News Service.
DETROIT, July 26-The motor
car industry next Thursday will wind
up its l94l model year, There may
be some limited output of present
models during the early part OF
August. but for the purposes of the
record, the model year ends July 81
The chroniclers of the motor in
dustry well may term it one OF the
epochal years of automobile manu-
facture and merchandising 1t was
a year that saw mass production
wizardry turn out more than $780,
600 passenger cars and trucks, and,
at the same time. get under way
preparations for an armament man.
ufacturing program without parallel
in American industrial annals.
For the year ahead. the produc-
ton OF motor vehicles for civilian
uses becomes a wholly secondary
undertaking. The industry may pro-
duce as many as 100000 such We
vi IL IlOl tui Al oOt AioAA
that number Assembling OF auto
mobiles will be subordinated def
nitely to the manufacture OF aviation
engines, bomber planes and plane
parts; army tanks, antl-alrcraft
guns, coastal defense, shells, artil-
lery units and scores OF other items.
Contracts Total 2 Billions.
Contracts for these elements of the
national defense already awarded TO
the automotive industry total about
$4,000 100000. The amount probably
will be tripled before many months
of the industry's new model yeal
have passed.
Outstanding among, the events OF
the model year now nearing its enc
are these:
With only 70 per cent of its exist
ing facilities adaptable to armament
production, the motorcar industry
began from scratch 10 provide ia.
cilities for the defense program
enormous new factory buildings
new machine tools and other equip.
ment; it could provide these more
rapidly new than by converting
existing facilities to unfamiliar
tasks
1t learned early in the l94l mode
year that it would be able to pur-
chase no new machine tools durins
the current emergency. That meant
no mechanical changes in 1912 ol
other future models while the de.
fense emergency continued.
Controls Applied.
Next came priorities on variou.
metals of which the motorcar in.
dustry was a primer user. The In
dustry then undertook the develop
ment of alternate metals or substi
tute materials.
Then followed disclosure that pro.
duction for civilian uses would b.
rigidly controlled, being determined
entirely by the volume OF material
and skilled labor that could b.
spared from defense trasks.
Following this came announce
ment of price control with indica
/ tions that maximum prices woult
be fixed for both new and used cars
An initial attempt by the office o
price administration and civilian
supply to control prices failed lat,
in the 194l model year, however
when Chrysler Corp. declined t,
withdraw retail price incress
announced few years earlier
! Chrysler maintained the increas,
was justified by advancing produc
ton cost.
Model Changes Abandoned.
/ One encouraging collateral devel
opment in the production and pric,
control disclosures was assurance b,
the Once of Production Manage
ment that every effort would b.
made to provide adequate repai
parts for the servicing of used cars
An intimation of what lies ahea,
in new car production was given b.
General Motors when it announced
early in the 1941 model period tina
it had abandoned all plans for ney
model changes beyond the 1912 type
in the interest of the defense pro
gram.
In the labor phase of the 1874
model period, the most significan
development was the strike b.
United Automobile Workers tCIO
At the Ford Motor Co.'S big Rive
Rouge plant and the subsequent n
gotiation OF contract between
union and company calling for
union shop and the collection O
union dues by the company. 1t wa
complete union recognition by
company that for years had Tough
unionization.
| Facilities Rushed.
Wage increases for hourly rate
workers throughout the industr
were granted for approximately hal
a million men. The increases hav
been estimated to total more tina
s125 100000 year
The new facilities the industr
has been rushing toward compile
ton for armament production al
in various stages of readiness. Som
are in limited production now
others will reach that point in
few weeks, and most if not all wi
be ready for the top level activitie
some time next spring.