British Car Crisis; Vauxhall Threat

Press, Volume CVI, Issue 31206, 2 November 1966, Page 17

British Car Crisis; Vauxhall Threat

(N Z.P.A.-Reuter—Copyright) LONDON, November 1. Britain’s once booming motor industry faced near chaos today after the Government rejected pleas by workers and management to ease a tightening squeeze on the economy. In 10 factories of the British Motor Corporation, the country’s biggest car maker, more than 23,000 men were idle through strikes against redundancies and a parts shortage.

With production at a standstill at these plants, B.M.C’s losses could run into millions of pounds.

A partial or complete shutdown of the Vauxhall factory at Luton a subsidiary of the American General Motors Corporation —is also likely, a spokesman for the firm said.

About 2000 men, unofficially working to rule for a week, had cut assembly line output by half, the official said.

Unless production was stepped up in an orderly way. many men would be sent home, he said. The Vauxhall workers were protesting against the company’s refusal to pay them for time lost when they were sent home because of a strike.

A union leader said after talks with the Vauxhall management: “We are no nearer a settlement. It seems possible that the works will close.” The Prime Minister, Mr Wilson, told car union leaders

in London yesterday that the Government’s tough economy measures would continue.

They were against work sharing—short-time working without redundancies. The Chancellor of the Exchequer, Mr James Callaghan, also rejected manufacturers’ suggestions that credit and hire purchase curbs be eased to revive the lagging demand for cars in Britain. Car workers now fear mass unemployment in the industry as stoppages and falling output spread to the components and accessory firms.