AUTOS: Pincers on the Market

The OPM-automakers' agreement to curtail 1942 production (TIME, April 28) was last week worked out in detail. The over-all reduction was set at 20.15%, from 5,289,972 new. cars this model year to 4,224,152 next. General Motors, Ford and Chrysler, which produce 90% of the nation's autos, agreed to cut their production 21.5% so that their medium-sized competitors would have to cut only 15%, their smallest competitors not at all; thus no company would be forced by quota below the break-even point. It was a good plan, with one failing: it was already obsolete.

Detroit itself felt so. Chrysler's President K....

Want the full story?

Subscribe Now


Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!