WardsAuto Flashback – December 2014
1939 Ends Strong; Wagons Gain; Soldiers Man Plants; Fishers Buy Land; Costly '55 GM Facelifts; Q1 1955 Record; Studebaker-Toyota May Link; Radial Tires Coming; Plant Shutdowns Loom; Saturn Misses Target; GM Takes Saab Stake
75 Years Ago (December 1939): Chrysler Strike Ends; Automatic Tops Grow; Year Ends Strong; Wagons Gain
After 54 days on the picket lines, Chrysler workers return to work after the UAW-CIO agrees to a 3-cent hourly wage increase that leaves many workers calling for a change in union leadership. Calling it a “tragic memento of incompetent labor leadership,” Ward’s Automotive Reports estimates it will take workers five years to recover earnings lost during the walkout. Those at supplier plants idled by the Chrysler stoppage likely will not recoup their losses. WAR also says the “nation has suffered a serious threat to its recovery movement” due to the loss of “millions of dollars in payroll and consumer goods expenditures.”
A new “automatic” convertible top being manufactured by Motor State Products is fast gaining momentum among car makers, with most models expected to 
'40 Buick offers new power top.
adopt the mechanism in the ’40 model year. The system utilizes hydraulic cylinders powered by engine vacuum to raise or lower the convertible top rather than have the vehicle operator perform the operations manually. Motor State forecasts 1940 revenue of at least $1.5 million due to the system’s popularity. All Chrysler bands, Ford, Mercury and Lincoln-Zephyr, and all General Motors divisions, except Cadillac-LaSalle (expected to join the fray soon), and Packard offer the automatic top on ’40 models. With Nash readying introduction of the top, only Hudson, Studebaker and Willys are holdouts. The use of the automatic top is forecast at 80,000 units in ’40.Despite much labor unrest this year, WAR estimates that production for 1939 will reach 3,725,000 vehicles, up 40.3% from the 2,655,777 cars and trucks built in 1938, but 25.8% less than the 5,016,437 turned out in 1937. Meanwhile, the Automobile Manufacturers Assn. says the industry supported 40,599 new car and truck dealerships in 1939, along with 80,709 repair facilities and 400,000 gasoline “outlets.”
'40 Ford part of station wagon boom.
Station wagons are being introduced in increasing numbers by nearly all manufacturers. “These all-purpose vehicles find markets among farmers, hotels, country clubs and private buyers who need suburban utility cars,” Ward’s says. Despite an overall 45.1% decline in car and truck production in 1938 from 1937, wagon output increased by 2.8%, growing by 29.7% in 1939. While most wagons still use varnished wood bodies, WAR prophesizes, “It would seem that if volume production continues to augment as rapidly as in the past, this wood framework will be changed to metal.” Changing to metal bodies would reduce prices and further increase wagon demand, it is noted.
70 Years Ago (December 1944): Soldiers in Plants; Fishers Buy Land; War Costs Revealed
The necessity of urgently increasing production of military trucks, tanks, guns and other war materiel is prompting the Army to begin furloughing an increasing number of soldiers to operate manufacturing facilities, specially foundries and tire plants. Military personnel are to be granted unpaid leave for up to 90 days, and perhaps longer, to work in critical facilities (where they earn the prevailing wage). In addition to skilled-trades work, some will be granted to leave to perform common-labor jobs deemed beyond the capabilities of women employees. The Army is taking these steps to ensure its increased battle-front needs are met after appeals to patriotism and various regulations imposed by the War Manpower Commission failed to entice enough workers into critical operations. However, it is expected an impending Selective Service decision to begin drafting men ages 26-37 years for military service will prompt enough workers to switch from “civilian” jobs to those in “essential war work” that the current shortages will be alleviated during to the coming year.
The Fisher brothers, former owners of GM’s Fisher Body operations, have purchased a large tract of land in rural VanDyke Township, MI, adjacent to 
Fisher brothers
Detroit. What plans the Fishers have for the land remain open to conjecture, Ward’s notes, adding “local rumors are rife as to future intentions.” The brothers originally formed Fisher Body to make automobile bodies for the fledgling car industry and later held positions in GM after the automaker bought their company.Federal government war expenditures in 1944 are expected to reach at least $90 billion, based on an average of $7.5 billion monthly in the first 10 months of the year. This would be up from $85,135,000 in 1943 and the $52,406,000 spent in 1942. Reported costs in 1941, when the U.S. had not yet entered the conflagration, totaled $4,631,000.
60 Years Ago (December 1954): Kaiser Intros ’55s; GM’s Costly ‘Facelifts’; Q1 1955 Record Seen
Kaiser-Willys is stressing utility in its pared-back ’55 model line that went on sale Dec. 9, 1954. The automaker plans to “aggressively” market the re-
engineered Jeep CJ and related Jeep-brand utility vehicles, while de-emphasizing car models. The new CJ-5 is 2 ins. (51mm) longer and 3 ins. (76 mm) wider than the prior model that was based on the WWII military vehicle. New front-end styling features a more-rounded hood, contoured front fenders and a larger windshield. It is powered by a 75-hp 4-cyl. engine and is available in six colors. At the same time, the Willys car lineup has been pared to just two models, a $1,795 Bermuda 2-door hardtop, replacing the Eagle series, and a $1,725 Custom 4-door sedan, replacing the Ace line. The Kaiser Manhattan will be offered as a single limited-production 4-door sedan, down from seven models in ’54, with the base price unchanged. The Kaiser Special, compact Henry J and Darrin sports car have been eliminated.
'Olds 88 part of GM's costly '55
While some industry reports call the styling of GM’s ’55 Buick, Cadillac and Oldsmobile models facelifts of ’54 designs, Ward’s says that “runs completely counter to the cold facts.” Buick gives “emphatic” evidence of new dies and production tools costing upward of an estimated $50 million, to yield a new look front and rear. Cadillac is estimated to have spent $18 million on new tooling, while Oldsmobile is said to have spent only slightly less than Cadillac. Overall, GM reportedly paid $600 million to bring its entire ’55 lineup to market, about half of which went to Chevrolet for its all-new car and V-8 engine lineup. Pontiac’s share is said to be $150 million.Demand for the industry’s ’55 models is so strong automakers are gearing to build 1,928,000 cars in the U.S. in January-March 1955, an any-quarter record. That represents a 35% gain from the 1,426,086 units built in like-1954. The current quarterly record was set in July-September 1950, at 1,898,783 units. Production for entire 1954 is estimated at 5,503,500 cars, with GM accounting for 51.8%, Ford having a 30.7% share and Chrysler, 13.4%. The independent producers account for the remaining 4.1%.
50 Years Ago (December 1964): Studebaker-Toyota Link; Truck Sales Record; Radio Signals Lights; Radial Tires Coming
Japanese trading company Mitsui says it has nearly concluded an agreement to sell small Toyota cars through Studebaker’s 1,700 U.S. dealers. According to Mitsui, the deal would give it access to an established dealer network without having to incur the costs of setting up a new retail operation. Since closing its U.S. plants a year ago, Studebaker has been supplying its U.S. dealers only the compact Lark built in Canada, where production has been doubled to meet demand.
Chevy pickup part of 1964 truck sales boom.
With a month left to go, U.S. new-truck sales in 1964 have reached a record 1,242,206 light-, medium- and heavy-duty units in January-November, erasing the record 1,229,890 sold in entire 1963. It marks the third consecutive 1.0 million-plus year, although strikes prevented the industry from extending its string of 10 consecutive months with sales in excess of 100,000 units to include November. Sales would have been even higher except for UAW contract strikes at GM, Ford, Mack and White.Motorola says it is manufacturing a new line of Lumalert radios that provide an audible signal if car lights have been left on. The warning will sound whether or not the radio is turned off, helping prevent drained batteries. So far, the manufacturer says it is offering the radio only in the aftermarket. It is estimated that the unit will cost $59.95, including installation.
Virtually all major U.S. tire makers are producing radial-ply tires, or are gearing up to enter the market in the near future. First out of the gate is Firestone, where limited production for lightweight domestic and import cars is already under way. U.S. Rubber says it is in the final stages of advanced testing of a radial tire that soon will enter production. Based on a Ward’s survey, Goodyear, B.F. Goodrich and General Tire are close to launching output of radials. So far, radial tires, said to last 10%-25% longer than bias-ply tires, are only offered in the replacement market for European or small, sporty U.S. cars. Reportedly, radials are used on about 75% of small European cars whose owners are “not accustomed to the comfort of American cars.” For the tires to be installed at the O.E.M. level, automotive engineers will have to change U.S. suspension systems to negate the noisier, harsher ride of radials. Until that is resolved, radials will be limited to the aftermarket. But even that is seen as a significant volume now being supplied from Europe.
25 Years Ago (December 1989): Plant Shutdowns Loom; Saturn Misses Target; GM Takes Saab Stake
U.S. automakers have announced “unprecedented” plans to idle nearly all of their vehicle assembly plants for one to two weeks early in January 1990, due to slow sales. GM is planning to close 22 of its 27 U.S. plants for various periods during the month. Ford will close seven plants for one week and three plants for two weeks. Chrysler will close four plants for two weeks and one for a week. The plant closings are in part the result of automakers slashing 200,000 cars from their first-quarter output plans, paring January-March auto production to 1,536,000 units compared with the 1,753,000 previously on the books. The revised slate is the lowest for the quarter since 1983, when 1,504,000 cars were built, and well below the 1,899,000 turned out a year ago.
At a Dec. 13 meeting in Detroit, GM’s Chairman tells the U.S. Deputy Energy 
GM Chairman Smith drives first Saturn off assembly line.
Secretary the new Saturn small car “does not quite achieve its initial mission to compete profitably in the subcompact segment of the market” exclusively using U.S. labor and technology. According to the executive, in order to get Saturn dealers up and running and get the consumers they want, GM is “giving up some of that first-time buyer thing.” General Motors says its will continue to rely on Asian partners for small entry-level cars, but with more domestic content. GM, Ford and Chrysler all testified they favor higher fuel taxes or carbon/greenhouse taxes to encourage consumers to buy the smaller, more fuel-efficient, cars they need to sell to meet the federal fuel-economy regulations of the 1990s.Swedish vehicle maker Saab-Scania has agreed to sell a 50% stake in its car operations to GM for $600 million. Scania will continue to operate its heavy-truck division. According to the U.S. automaker, Saab’s three under-utilized car
GM takes stake in Saab Automobile, builder of this Saab 900.
plants and a new engine plant will eventually make products both for GM and Saab, although the phase-in of GM products will be gradual. GM also says there will be some sharing of components and engineering and the joint-venture will have access to its worldwide technology and supplier networks. Distribution networks will remain separate and any GM products built at Saab will be for the European market only. Although Saab has the capacity to build 200,000 cars annually, its volume has ranged from 110,000-130,000 in recent years.About the Author
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