WardsAuto Flashback – July 2014

Tooling Strikes, Civilian Output Cut, Tire Crisis Looms, Corvette to get V-8, OEM Tubeless Ties, Record '65 Output, Benchmark Corvette Sales, SIA Opens, Allante Stays, Nissan Rejects UAW

Al Binder, Senior Editor

July 21, 2014

9 Min Read
Mercury among cars adopting sealed beam headlamps in rsquo40
Mercury among cars adopting sealed beam headlamps in ’40.

75 Years Ago (July 1939): Tooling Strikes; Sealed Headlamps Seen; New Ward’s Publication; ’40 Output Starts

From Ward’s Automotive Reports’ July 8, 1939, issue comes word that the “long-threatened UAW-CIO strikes in General Motors tool and die shops broke out this week, threatening to delay ’40-model introductions if the tie-ups continue for any length of time.”

Robust field stock of ’39s may mitigate any damage from a delayed new-model launch, Ward’s notes.

According to a 1939 report from the Automobile Manufacturers Assn., the auto industry consumes 90% of the gasoline refined in the U.S., 80% of the rubber manufactured, 69% of plate glass, 65% of upholstery leather and 53% of malleable iron.

On the other hand, it uses only 10.6% of U.S. aluminum and 9.2% of tin annually.

“Probably the outstanding novelty item to be featured by practically all car producers for 1940 will be hermetically sealed headlamps,” WAR says.

General Electric, Westinghouse and Tung-Sol will produce a portion of GM’s requirements and about 20% of Ford, Mercury and Lincoln-Zephyr requirements.

Meanwhile, Hall Lamp, GM’s Guide Div. and Electric Auto-Lite will manufacture a slightly different variation of the “sealed beam” lights for use in vehicles made by GM, Chrysler, Hudson, Packard and others.

The main advantages of the new lights are their fixed focus and sealed lens-reflector assembly that prevents dust and moisture infiltration.

“How the motoring public will respond to a $1.35 replacement charge necessitated by filament failure, where previously a new bulb could be fitted for 35- or 40-cents remains to be seen,” WAR observes.

In mid-July, Ward’s announces it is launching a new publication, Colors and Contours, “devoted solely to developments in the field of industrial design, particularly related to automobiles.”

Subscriptions will cost $25 annually and “Ward’s will appreciate comment on the sample copy, together with suggestions for subject matter in forthcoming monthly issues.”

The week-ended July 22, 1939, sees Packard lead the kickoff of ’40-model production with Nash soon to commence output.

Led by Plymouth, all Chrysler brands are expected to be in production by the end of August, as will Hudson and Studebaker. However, the ongoing tooling strikes will delay GM launches previously set to take place between mid-July and mid-August.

70 Years Ago (July 1944): Civilian Trucks Cut; Reconversion Base Laid; Tire Crisis Eminent

The 1.0 million-unit civilian-truck output plan for 1944 originally set by the War Production Board has been steadily trimmed to the point where only 600,000 to 700,000 units are likely to be built. The reduced volume largely is a result of the widespread lack of workers, especially in foundries.

The lack of plant capacity envisioned early on has become a moot point given the worker shortage.

The WPB has given the automakers the “go ahead” to begin laying plans for post-war reconversion to civilian car production.

According to WAR,  “Indications are that first consideration will be given to possible modifications of ’42 passenger cars to bring the models that the industry is tooled to mass produce up to some degree of improvement in line with public expectations.”

A distinctive change in appearance of the last pre-war cars is thought to be essential to successful merchandising, WAR notes. Improved fuel economy also is thought to be crucial in developing post-war cars with air- vs. water-cooled engines and supercharging all being debated in developing more fuel-efficient models.

A truck and bus tire supply crisis is at hand, according to WAR. “Over-generous domestic allotments earlier in the year, a huge increase in shipments to European war zones and lack of sufficient plant capacity” are seen as responsible for slashing tire stock to a “precarious” level.

Hurried shipments of military-vehicle replacement tires to France and Italy, where trucks are the only way to move troops and cargo given the complete destruction of the railroads, also is a factor.

To stretch available domestic supplies, a rigid rationing system is being implemented, dispensing only 66,000 truck and bus tires in August, down from 135,000 in July.

July and August shipments now constitute virtually the entire previous third-quarter allotment.

60 Years Ago (July 1954):  Record Car Sales; Corvette Respite; V-8 Soars; OEM Tubeless Tires

June U.S. domestic-make new-car sales of 560,000 units were the highest for the month in four years, trailing by 2.6% the 575,000 cars delivered in June 1950. Compared with May’s 505,000 deliveries, the June tally was up 11%.

Strong June sales helped reduce bloated dealer inventory for the second consecutive month, with an 11% overall production cut expected to trim inventory to a manageable level by July 31.

June’s robust performance helped the Ford brand edge out rival Chevrolet for top spot in the 6-month period ended June 30 and nudge Ford, Mercury and Lincoln sales to a combined first-half record of 1,040,099 units.

After having built 3,200 units in 12 months, Corvette production has been cut this month to 300 cars from the recent 1,000-unit monthly pace to incorporate engineering changes for ’55 models, including the likely fitment of a V-8 engine.

Originally envisioned as an experimental program to give GM experience with fiberglass bodies, the ’Vette now is being redeveloped into a more performance-oriented car.

With the upcoming ’55 Ford Thunderbird sporting a standard V-8, Corvette is disadvantaged by its 150-hp I-6 and Powerglide automatic transmission, WAR opines.

A manual gearbox also is expected to be standard in the ’55 model.  

A wholesale industry change to tubeless tires may be close at hand. Following Packard’s switch to them as a running change in ’54, at least 55 additional models will feature tubeless tires in the coming year.

Meanwhile, B.F. Goodrich, having already launched a lawsuit against Firestone for infringement of its tubeless-tire technology patents, has filed a complaint against U.S. Rubber (Uniroyal).

At the same time, Socony-Vacuum Oil (Mobil) announces it will offer a tubeless tire in the replacement market under the brand Mobil Premier. Socony says its design is different from that patented by Goodrich. 

(July 1964): Haulers' Strike Hits Sales; Record '65 Output Seen; Corvette Sets Record;

The month-long strike by the Teamster union against East Coast car-transport companies reportedly trimmed June car sales by more than 40,000 units, according to WAR data.

By the end of the strike on July 23, an estimated 135,000-plus cars, many of them “sold orders,” are stockpiled in all available eastern storage areas.

Altogether, one Chrysler, two Ford and eight GM plants are affected by the walkout that began June 22.

Prior to the inking of a new agreement, automakers had been contemplating various means to move the cars to dealers.

In a similar situation several years earlier, college students had been recruited to drive the cars to dealers. However, several cars ended up across the country in California, it was pointed out.

U.S. car production is forecast at a record 7.6 million-7.8 million in model year ’65. That would top the benchmark 7,893,000 units estimated by Ward’s in model year ’64 as well as the former record of 7,131,000 turned out in ’55.

Although the current economic expansion is broad-based, uncertainty in second-half 1965 prompts speculation that output for calendar year 1965 will run “several hundred thousand units below the ’65 model year volume” and could have difficulty matching the 7.7 million units forecast for calendar 1964.

Corvette production in model year ’64 is expected to reach a new record estimated by Ward’s at 23,000-24,000 units, toppling the prior record of 21,513 set in ’63.

It marks the ninth consecutive output record for the Chevrolet sports car.

The Volkswagen Type I (Beetle) convertible and the sporty Karmann-Ghia are among VW’s more popular models in 1964. Sales of the convertible in January-June are up 26.6% over like-1963, while the Ghia posts a 14.4% gain.

25 Years Ago (July 1989):  SIA Opens; Allante 'Airbridge' to Stay; Nissan Rejects UAW

The Subaru-Isuzu Automotive joint-venture assembly plant in Lafayette, IN, is nearing completion with a Sept. 8 opening planned. Monthly volume of 10,000 units will be split evenly between the two automakers.

Production commences with a Subaru 4-door sedan and wagon alongside an Isuzu pickup. An Isuzu SUV will be added to the mix early in 1990.

Production in the first 18 months will be at an annual rate of 60,000 units, but could rise to as much as 240,000 units by 1992.

Reports indicate engines will be imported at first, but Isuzu may source its powerplants from GM at a later date as it seeks to increase local content.

Cadillac is denying rumors it seeks to end the so-called “airbridge” that flies completed Allante bodies from Pinninfarina’s plant in Italy to GM’s Hamtramck, MI, assembly plant. The “airbridge” contract runs through 1991.

Cadillac’s Director of Market Assessment and Strategy says he expects the luxury market to strengthen in model year ’90 and that Allante will be “a thorn in the side of Mercedes.”

He also points to survey data showing 60% of Allante buyers are under 50 years of age with average annual income of $150,000, 30% of whom would never have considered any other GM car.

Workers at Nissan’s Smyrna, TN, plant have rejected affiliation with the UAW by a vote of 1,622 to 711. According to WAR, the rejection could be the death knell for the union ever organizing the workforce at any U.S. plant wholly owned by a Japanese automaker.

So far, only Japanese transplant facilities affiliated with GM, Ford and Chrysler have come under UAW representation.

In Canada, only the CAMI (GM-Suzuki) plant in Ingersoll, ON, and the decades-old Volvo facility in Halifax, NS, have been organized by Canadian Auto Workers union.

About the Author

Al Binder

Senior Editor, WardsAuto

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