NOT CLOSING DOWN

Poverty Bay Herald, Volume LXV, Issue 19667, 27 June 1938, Page 13

NOT CLOSING DOWN

MOTOR FIRM’S WORKS PRACTICE EXPLAINED A complete denial of Ihc recentlypublished report that several motor firms were closing down their factories in the United States as the result of the business recession was made in Wellington by Mr. G. H. Strock, executive manager for Australia and New Zealand for the Chrysler Corporation who is visiting the Dominion.

The report was entirely misleading and liable to create a false impression concerning the motor industry in the United States, said Mr. Strock. He understood that a correction had since been issued, but the original report was calculated to do great harm.

It was the normal practice for these firms to close down their factories each year for a period of 20 to 30 days for such purposes as stock-taking and replenishing materials for new models, said Mr. Strock. Many employees took their holidays during this period; in fact, they looked forward to it. Many others stayed on at the works assisting in essential tasks. The report of a complete shut-down was, therefore, erroneous and misleading. Business in United States When asked to comment on business conditions in the United States, Mr. Strock said he had been in Australia and New Zealand for the past seven months, but had been given to understand that there was an upward trend in the States. Some reports had been inclined to create a state of alarm, but they exaggerated the position. It was true that there had been a trade recession. Much of this, in his opinion, was attributable to hampering legislation. “There is no need for me to emphasise that industry dislikes interference. It is essential that we should expand, but when you encounter high taxation and are told how your business should be run there js bound to be some form of repercussion.” Production for Volume

Higher wages and higher costs had led to more automatic machinery in the United States, said Mr. Storck. He denied that the chief object of business was to produce for profit. So far as the motor trade was concerned, the main object was production foxvolume.

“You must have volume in any form of production in order to bring about lower prices—prices the public can afford to pay,” he said. “If, however, you are restricted and the volume of production decreases, the price becomes such that the public cannot pay and you are automatically thrown into a state of lower production.” One restrictive influence was high costs brought about by such factors as wage increases and a shorter working week. Mr. Strock said he believed the workers were happier when the cost of living was lower. The savings of the people were greater and they felt they were more secure.