AUTOS: Squeeze on K-F

When sales of Kaiser-Frazer cars went into a slump recently, K-F cut production from 675 to 350 units a day rather than cut prices. Last week, its annual report showed why it had no choice. Though its sales had increased 24% to $341,500,000, its 1948 profit, before taxes, had risen only 2%. And after taxes, the profit of $10 million was little more than half that of 1947, when no taxes were paid. In effect, K-F could not afford to cut prices because it was making less than $100 a car.

With a buyer's market in cars fast approaching, K-F's...

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