Detroit evening times., 1945-08-26
Auto Makers
Race for Lead
Labor Strife, Material
May Spell Delay

With the lid on automobile pro-
duction and the price formula
pretty well settled, car producers
Saturday stepped up reconversion
operations for an early resump-
ton Of full peseetime output.
Manufacturers saw only three
obstacles:
Quick clearance Of their
plants OF army and navy tools,
machines and material. finished
and in process. and replacement
OF their ovn machine tools.
a-Hurther clearing up OF the
materials situation. 20 ensure
prompt delivery Of the essential
items that 20 into automobiles,
especially steel. textiles and
rubber.
S@Speedup in delivery Of new
machine tools 10 replace those
sold 20 help war production and
QpOcC H1aQC OpcOACNCs
: ADVERSE FACTORS
Two other factors which could
interfere vitality with the time
table for reconversion are labor
strife, both In the reconversion
phase and during the resumption
OF production, and price ceiling
controversy between parts produc-
ers and the OPA.
(The OPA will announce q
ccst-plus new car price ceiling
fermuIa next Monday with
which automobile manufacturers
win base dollars and cents
pricea, if WAS learned tonight In
Washington, UP reported.l
The labor angle is one which
the manufacturers are watching
closely. Even before WI Day,
inter,inion strife was delaying
some Of the plants in their efforts
to get ready for peacetime pro-
duction.
This struggle has not been set
tied definitely and another out
break over who shall install ma
chinery in plants could delay re-
employment greatly.
The parts manufacturers, on
whom the passenger car produc-
ers are greatly dependent, have
not yet been apprised of what
they can expect for added labor
and materials costs.
They have been battling the
OPA for months to lift the cell
ings on their products, to no avail.
The latest word to them was
that they will be given their for
mula after OPA chief Bowles an
ncunces formally the increases to
be allowed auto makers.
Halls QUOTA LIFTING
The latter already know but
their suppliers wait %anxiously.
Some have threatened TO 90 out
of business unless they get sub
stantial boosts for their products.
The lifting Of the car quotas
was hailed typically by Jack
Davis, sales manager for Ford.
sAt last, we can do business
40 IL should be done," he said.
"Ford 10 ready 90 80 ahead
under full power"
The Ford company has been in
very limited production since July
/. Because Of the delay in setting
prices, IL has been forced to keep
their output low and store its cars.
With both prices and production
settled, the company Is expected
70 start rehiring Immediately and
step up It's output.
Hudson is expected to start pro-
ducinK cars this week. The CON-
pAny will now seek volume pro-
duction At a much accelerated
pace.
Nash, too, Is ready to 90 ahead
with It's new car. Although II has
laid of q little more than half its
normal work force, the company
expects 70 start rehiring workers
In 30 10 IS days.
FILL WAR CONTRACTS
Several of the General Motors
divisions are also ready TO 60
ahead. Because OF its wide volume
OF war work and the continuance
Of many contracts on a limited
basis, the corporation has been
handicapped in reconversion.
Chrysler, which kept TO its war
contracts right up to victory has
been slow TO change over. But
X. r. Keller, president Of the cor
pofation, said last week:
~Chrysier will be back In
psaeetime production ~ quickly
% 10 possibly can"
The dropping OF restrictions on
volurns 10 expected 10 end ration
Ing Of the new cars quickly. So
far, the only ones eligible for the
drst 1916 autos are doctors, visit
ing nurses, clergyman and those
In police work.
But II the industry can attain
volume production, as II expects
20 do by October or November
the list will be widened and, BY
the first Of the year. when tho
car producers expect 10 attain pre-
war rates, the OPA is expected Il
&sLs ~ ths lst Rntirely