TO SHUT DOWN

Waikato Times, Volume 122, Issue 20512, 31 May 1938, Page 9

TO SHUT DOWN

MOTOR FACTORIES REBULT OF TRADE RECEBBION THOUSANDS OF WORKERS IDLE United Prc:.; Assn, — Elec, a el. Copyright NEW YORK, May 29 The Ford, Chrysler and General Motors factories are to be shut down for at least two months during the summer as the result of the trade recession, and hundreds of thousands of workers will lose their jobs, says a North American Newspaper Alliance copyright message from Washington. It is stated that nothing but an extraordinary economic rebound will avert the stoppageSerious economic consequences are feared, as the motor industry is the greatest consumer of raw materials. EFFECT IN NEW ZEALAND A FILLIP TO BUSINESS NO WORD OF CLOSING (By Telegraph.—press Association) WELLINGTON, Monday "We have had no word otf such a shut-down although probably the report is correct,” said the director of a large motor firm to-night. "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 tlie shut-down will not make any difference except in so far as depressed conditions in one country are inevitably reflected in others.” The director said he did not anticipate that the local assembly plant would have any difficulty in securing supplies. Manufacturers would probably have sufficient stored to tide them 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 until August, when the factories close down for two or three weeks,” he added.

A prominent 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 manufacturers might reduce the price of completely knocked down cars disposed of overseas. Before closing down they would see there were sufficient stocks to supply requirements. There had been no indication of slackening off at the local Ford plant, the capacity of which had recently been Increased. Although they were producing 48 units a day, they were 800 units „ehind.