MAY SHUT DOWN.

Auckland Star, Volume LXIX, Issue 126, 31 May 1938, Page 7

MAY SHUT DOWN.

U.S. MOTOR WORKS.

Closing' Said Due to Business

Recession.

BIGGEST PLANTS INVOLVED

United Press Association-—Copyright.

NEW YORK, May 30.

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 Wash-

ington.

It is stated that nothing but an extraordinary economic rebound will avert the stoppage. Serious economic consequences are feared, as the motor industry is the greatest consumer of raw materials.

EFFECT IN N.Z.

Expected to Make Little

Difference.

NO NEWS OF STOPPAGE.

(From Our Correspondent.)

WELLINGTON, this day

Interviewed last night the above cable from New York the director of a large motor firm said: "We have had no word of such a shut-down although quite probably the report is correct.

"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 the shut-down will not make any difference except in so far as depressed conditions in one country are inevitably reflected in others."

A prominent Ford dealer said that so far as the industry in New Zealand was concerned, a shut-down would tend to give a filip to business rather than 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 behind.