Evening star., 1941-06-29
Automobile Makers
Coming Here 10 Plan
New CurtaiIments
Second 20 Per Cent
Reduction in Output
Expected by Industry
By DAVID J. WILKIE,


DETROIT, June 28-The men
who make the nations motor vehi-
cles are worried less about the pros
pect OF a further cut in approved car
output during the coming model
year than they are about the formula
for implementing it.
This was indicated today as the
manufacturers were invited to meet
In Washington next Wednesday with
the Once of Production Manage
ment to discuss plans for a cur
tailment beyond the 2015 per cent
already ordered.
None of the car manufacturers
available today would discuss the
probable extent of the impending
new curtailment order or its ap-
pointment among the various COM
panies. A further slash, however,
has not been unexpected because
the first cut was specifically labelled
an initial" one when it was an
nounced several weeks ago.
Another Cut Expected.
Along with reports from WASH
ington of demands in certain
quarters for a further drastic" re-
duction in next years car assemblies,
comment in trade quarters here has
speculated upon another 20 per
sent cut as likely.
With an indicated output for the
current model year of around s.
100000 cars and trucks, the overall
production for next year thus would
be reduced to about 3,275,OOO units.
Sources in close touch with the
motor nduStryS production prob
lens suggested today that the
method of applying the cut. regard
less of its extent, would determine
how much dislocation must result.
They pointed out that while the
automobile industry has produced
an enormous volume of defense
material during the last year, it Is
not yet ready to absorb into arma-
ment work all the men who would
be made temporarily idle by an
abrupt reduction of vehicle manu-
facture.
Problem Of Employment.
These sources assumed that the
Industry committee to be named as
a result of next weeks meeting
with the o. P NJ would propose
gradual application of the curtail-
ment. Under this plan. urged also
by labor union leaders, the full
weight of the reduction would come
when the workers can be assigned
to the new tank arsenals, bomber
plane plants and aviation engine
factories the automobile industry
now has in construction.
The period of curtailed produc-
ton for the motor industry begins
on August l, but the trade experts
believe at least the first months
share of the curtailment will be
shifted to later month. If August
production were cut 40 per cent
below the same month of last year,
the factories would be limited to
only 55,524 assemblies during that
period. At the present rate of pro-
duction activity that volume pro-
vides but two days work in the
industry's assembly plants.
Along with speculation as to how
new production curtailments might
be tapered into the initial weeks
of the new model year there is more
than a little interest in what part
of a new reduction may be assigned
to the major producing units among
the car manufacturers.
When the initial curtailment was
finally worked out the big three
General Motors. Ford and Chrysler
which make almost 80 per cent of
all the cars and trucks sold, agreed
to cut 21.5 per cent each so that
smaller companies like Nash. Stude-
baker, Hudson. Packard and WHY'S
could be assigned lesser curtail-
ments.
1t Is assumed in trade quarters
that a somewhat similar procedure
will be followed with the additional
reductions.