AUTOS: Drive Them off the Floor

Kaiser-Frazer Corp. laid off 750 employees a fortnight ago after what it termed a "straight-from-the-shoulder" explanation: "Since engine deliveries are not keeping pace with schedules, we are in the process of reducing personnel to conform to the delivery of engines." Last week, in what appeared to be an attempt to remedy the shortage, K-F leased part of the Detroit plant of Continental Motors Corp., which had been supplying its engines. Henceforth, said K-F, it would make most of its own engines, pay Continental a fee.

On the face of it, the deal seemed to be a rather severe rebuke...

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