TRADE SETBACK

Wairarapa Times-Age, 31 May 1938, Page 7

TRADE SETBACK

MOTOR WORKS CLOSING IN U.S.A. "FOR AT LEAST TWO MONTHS DURING SUMMER” HUNDREDS OF THOUSANDS OF JOBS AT STAKE By Telegraph—Press Association. Copyright. WASHINGTON, May 29. The Ford, Chrysler and General Motor factories are shutting down for at least two months during the summer as the result of the business recession, says a message copyright by the North American Newspaper Alliance Hundreds of thousands of workers will lose their jobs. It is stated that nothing but an extraordinary economic rebound can avert the stoppage. Serious economic consequences are feared, as the motor industry is the greatest consumer of raw materials in the country. NOT BELIEVED REPORT DECLARED TO BE INCREDIBLE OPINIONS OF NEW ZEALAND TRADERS “It is inconceivable that the three firms mentioned are shutting down all their factories,” said an executive of a large motor firm, interviewed in Wellington last night. “It seems to me to be a broad statement, made without realising what it may mean,” he added. “They might be shutting down some of their’ factories —that it quite possible; it has been done before. But to say that they are going to close them all is like saying that no one will shear sheep in New Zealand next season. We know that trade in America is not very good, but it is not as bad as that. “The automobile industry is the biggest in the United States, and the three firms mentioned do nine-tenths of the business. Each has dozens of factories. Ford and General Motors each have about 260,000 workers, and Chrysler nearly as many. They can’t be going to throw them all out into the street. “Summer is Jhe period • when the motor industry does most of its business, and it is impossible that the three firms mentioned should close all their factories. They did not do that in 1931-32 when things were much worse. It would have a serious effect on business right round the world.” REPORT POSSIBLY CORRECT “We have had no word of such a shut-down, although quite probably the report is . correct,” said a director of another firm. “We do know that, on account of the business recession, motor, firms in America have been working short time—two, three, or sometimes, but not often, four days a week “From our point of view a shut-down would not make any difference, except in so far as depressed conditions in one country are inevitably reflected in others.” He did not anticipate that the local assembly plant would have any difficulty in securing supplies. The manufacturers would probably have sufficient stored to tide over the stoppage. They would certainly not put themselves in the position of being unable to supply orders. “Each year about this time we have to place our final orders for the current model, and that takes us through till August, when the factories close down for two or three weeks,” he said. A Ford dealer said that, so far as the industry in New Zealand was concerned, a shut-down would tend to give a fillip to business rather than to hinder it. Faced by a shortage of outlet in the domestic market, the manufacturers might reduce the price of completely knocked-down cars disposed of overseas. Before closing down they would see that there were sufficient stocks to supply requirements. There had been no indication of slackening off at Ford Motors’ New Zealand plant, the capacity of which had recently been increased.