Evening star., 1951-12-10
No Car Shortage
During
FIRST Half Of 81
Scarce Metals Cause
Rough Shedding for
Automobile Industry
By jones Y. Newton

lSlug scarce metals, are eIlCOun-
tering rough shedding, and things
for them will get worse before
they are better.
The expanding re-armament
program is requiring ever increas-
ing quantities of the Nations sup
plies of steel. copper and alumi-
mum. taking larger and larger
bites of the supplies that nor
mally would go into manufacture
Of new cars, refrigerators, con-
etc.
All of this raises questions like
how many automobiles will the
be able to produce in
1852 and the year after? Will
new cars become scarce and hard
to get as was the case few years
ago? In view of Government re-
on use of new machine
tools and metals, what will the
new cars look and be like?
Substitutes May Be in Line.
In the current quarter-year
(three months) the Government
allotted to manufacturers enough
steel, copper and aluminium to
produce about IL million autos.
This compares to a pre-Korea
average production of about 16
million a quarter.
For the first three months Of
1852, the National Production
Authority has allocated sufficient
of the three metals for manufac-
ture of about 100000 new cars.
NPA said the industry would be
allowed to produce up to 1,006, 900
cars in the quarter if it could do
so by squeezing" metal supplies,
using substitutes for scarcer ma
terials and scraps of inventory.
The industry believed it could
produce the maximum.
More recently, after metals al
locations were announced for the
first three months of 1852, there
developed a serious shortage Of
steel plate. that goes into the
frames and bodies of cars. The
industry was told it would have
to get along with 40 per cent less
steel plate than the amount orig
inally allocated for producing the
$4,000 cars.
Extra Cost Involved.
Then. Manly Fleischmann, de-
fense production administrator.
said the manufacturers could use
so-called conversion steel" in
place of the finished plate that
was to be taken away. Some COM
panies were producing more raw
or ingot steel than they could
finish. Mr.. Fleischmann's ruling
meant the auto producers were
free to purchase this excess in
got steel and then have it fin
ished in their own mills or wher-
ever they could. This involves
considerably higher cost, but the
manufacturers have agreed to it.
The Government has not said
what quantities of scarce metals
the auto industry will be allowed
to use beyond the first three
months of next year. The best
guess is that production will be
permitted in the rest of the year
at about the million-and-a-quar-
ter or slightly reduced rate.
There are individual bottle
necks to car production besides
the overall shortage of plate
steel. copper and aluminium.
Special items like copper wiring.
chrome, stainless and nickel steel,
are in very short supply.
New Market Is "Soft."
On the question of whether
there will be enough cars to meet
demand. it is pointed out that
the new car market has been
soft" recently. That is, public
buying has slowed down and there
are not enough buyers for soma
of the autos now on the market.
The industry. however. does not
expect this situation to continue
very long, especially in the face
of reduced production. The best
guess, once more, is that at least
shortages will not develop in the
first half of 1852.
Toward the end of next year.
Government production officials
hope they will be able to allocate
larger quantities of scarce metals
for civilian uses. Facilities to
produce steel and aluminium are
being expanded rapidly and new
plants will start to produce in
volume late in 1852. That could
mean more new cars.
AS to appearance, it is probable
that cars made up to at least the
of 1852 will be just like the
new models now appearing in
dealers windows. Later. short
ages of chrome, stainless steel and
other materials may force manu-
facturers to leave off some of the
bright" trimmings.
New Tooling Banned.
The National Production Au-
thority as of next February is has
banned the use of new machine
'oolS in auto making. The order
1oeS not affect 1852 models, but
will have the effect of prohibiting
any major model changes after
he effective date.
Because manufacture drains of
supplies of some of the scarcer
materials, NPA also has limited
'he use of automatic transmissions
'r drives in new cars. Manufac-
,urers may install automatic drives
n a maximum of 35 per cent of
heir cars selling for 81 300 or less.
md IS per cent of those in the
'1,800 to $4,000 range. Both are
actory delivery prices. Automatic
irives may be installed in all cars
selling at the factory for over
q, 500.
General Motors Chevrolet di-
'ision has claimed the order
works a hardship in their case