Evening star., 1949-03-29
|Top Kaiser Executives
Shifted; Prices Cut
From S198 10 S333
BY the Assoeiotsd Press

DETROIT. Mar. 29.-Kaiser-
Frazer Corp. slashed its car prices
today-the automobile industry's
second price cut within a months
time.
simultaneously, Kaiser Frazer
announced change in top man
agement.
The price cuts ranged from
$198 up to 1888 on Kaiser -Frazer's
various models, by far the largest
of any cuts in the industry since
the end of the war.
The company said in q state
ment that it was entering a
broader mass market" and was
offering the public the lowest
priced big cars in the world"
Coupled with the price cut was
the elevation of Edgar F. Kaiser
to the presidency of Kaiser
Frazer.
Frazer Is Board Vice Chairman.
Mr.. Kaiser, son of Board Chair
man Henry j. Kaiser. succeeds
Joseph w. Frazer, who becomes
vice chairman of the board, a
newly created post.
The younger Kaiser was for
merly vice president and general
manager. His father and Mr..
Frazer founded the auto COM
pany in 1945.
The changes were described in
trade circles as the outgrowth of
differences in policy.
Kaiser Frazer, still a relatively
newcomer in the highly compet-
itive auto industry. cut its prices
a month after General Motors re-
duced prices.
General Motors, largest of the
car producers, reduced its pas
senger car prices $40 to $40 and its
trucks up to $3.50.
In Good supply Position"
This was coupled with a two
cents-an-hour contractual cost
of-living wage cut for GINS 273,000
production workers. GIN said at
the time it meant to let the public
benefit both from the wage cut
and increasing availability of ma
terials.
Kaiser-Frazer, in it's announce
ment today, commented that it
was in it's best supply position"
in its history regarding finished
parts and basic materials.
The company said its price cuts
averaged in excess of 1012 per cent.
Two years ago. Ford cut prices
but subsequent increases more
than wiped this out.
However, yesterday President
Henry Ford II said in Boston that
Ford might again reduce prices.
He said material costs were COM
ing down somewhat" He en-
phasized when he said cuts were
possible" he did not mean prob
able"
Won't Have to Get Extras.
Mr.. Ford said that the consumer
is getting a car cheaper today than
a year ago. The buyer soon will
be able to get cars without un-
wanted extras"
More advantageous trade ms"
he added. may cut the dealers
profit margin, with consumers
benefitting."
In Kaiser -Frazer's personnel
changes, o. B. Motter and W. A.
Macdonald resigned as directors.
No successors were named.
The management and pricing
changes were reported in trade
circles to be the outgrowth of
long-standing differences between
two factions in the corporation.
The executive shifts were viewed
as transferring major control of
the company to the Kaiser family.
Henry j. Kaiser and Joseph w.
Frazer said in a joint announce
ment:
Make Joint Announcement.
Kaiser Frazer is entering a
broader mass market and simul-
taneously is pressing production
scheduled on five outstandingly
new and different models. We are
offering the public the lowest
priced big cars in the world.
Our 1900 dealers can imme-
diately market the largest car in
the industry selling at a factory
delivered price under $1,000" This
reference was to the 123h Inch
vheelbase Kaiser special delivering
retail at the factory at 1895, a
reduction of 1898.
The Kaiser Frazer officials said