Evening star., 1942-02-21
Big Three 10 Refuse
To Produce Trucks
On ". P. B.''s Order
OfficioIs Soy Dealers
Won't Accept Delivery
Of TireIess Vehicles
Special Dipatch to The Star and North
American Newspaper Alliance.


Special Dfpatch to The Star and North
American Newspaper Alliance.
DETROIT, Feb. 21.-The automo-
tive industry is seething with indig-
nation against what executives
term a fantastic" Government Or
der providing for q March truck
production Of 54,7l0 medium and
heavy units and presiding further
that the trucks must be shipped to
dealers without tires, while the
dealers are still stocked up with
frozen trucks and cars.
First result of the order, issued
January "a by the War Production
Board, came today when it was
learned authoritatively that De-
troit's big three" in the truck
producing fleld-Ford, Chevrolet
and Dodge-will refuse to produce
the 22,50O quota assigned to them
for March.
The manufacturers refusal is
based on the fact that dealers
throughout the country, already
strained to the brink Of insolvency
by their efforts to maintain the
stock Of $4,000 trucks frozen" by
the January l order, have been
telephoning Detroit their fiat re-
fusal to take additional trucks, espe-
cially trucks without tires.
Can't Force Dealers.
"What can we do?" said the head
of one of the largest truck firms.
I'VE can't force our dealers to take
on more trucks until either the
Government or Rationing Boards
see At to release them. Therefore,
the conclusion is inevitable. We
just can't turn out the trucks"
There are now 562 900 passenger
cars and trucks frozen in the hands
of dealers throughout the country.
These vehicles are divided into two
categories-the "A" stock consisting
of cars and trucks to be released
after February 26, when rationing
regulations are issued, and the "B"
stock or deep freeze pool" as the
industry terms it. consisting of cars
and trucks which the Government
has promised to take over January
/, 1943.
Those vehicles represent an ap-
proximate value of $500 900, 900,
financed by large and small dealers
throughout the country. The strain
of carrying the finance charges on
such huge investment has become
so terrific, executives said. that deal
ers are going out of business or into
bankruptcy.
Aside from the finance charges
they must pay on their frozen cars
and trucks, there are warehouse
charges, overhead and the constant
cost of keeping down the loss from
deterioration. No wonder they re-
fuse to take on additional trucks"
Canada Cited As Example.
The executive pointed out that in
Canada, which has been at war two
and half years, rationing of auto
mobiles and trucks has just begun.
Canada has frozen a stock of 5000
automobiles at key points in the
Dominion. but the government Is
bearing the entire cost of MAIN
tanning these cars until they are put
into use
What is the solution to the prob
lens facing the American car dealer
today?
There are two possibilities" said
the Detroit executive, land the whole
industry has been trying to get the
Government to adopt one or the
other. The first plan is to forget
about rationing' cars frozen under
the January / order and let the
dealer liquidate his stock without
restriction. The second plan is to
let the dealer liquidate his stock in
an orderly manner on a monthly
basis.
"All these men are doing is plead
ing for a chance to sell vehicles
which they own. Judging from
present rationing plans, the num-
Der of people qualified to buy cars
will be so small that it will take
years for the dealers to get rid of
their present inventory.
Under the w. P. B. order we
must either ship trucks without
tires or, to facilitate delivery, we
can send them out with tires which
the dealer must remove and send
back to the manufacturer.
Now, of what earthly use is
truck without tires? A customer
might be able to get a rationing
order for trucks, which are plenti-
full, but be unable to get rationing
order for tires. which are not so
plentiful"