Business: K-F Slows Down

While the rest of the auto industry picked up speed, the newest producer suddenly eased up on the throttle. Kaiser-Frazer Corp. announced that it had laid off some 3,500 night workers, cut production from nearly 1,000 cars a day to around 750.

The cutback, said General Manager Edgar F. Kaiser, represented "an economy drive in the face of mounting costs that have forced several auto manufacturers recently to raise prices." It was more than that. The company's failure to get new financing (TIME, Feb. 23), with which it hoped to boost output to 1,500 cars a day, had left it in...