AUTOS: Trouble for Kaiser

The shortage in steel threatened to wreck the automaking of Henry J. Kaiser. As a possible hedge against grave trouble, last week he leased two Government-owned aluminum plants near Spokane, Wash., the $47,630,000 Trentwood rolling mill and the $22,270,000 Mead reduction plant. The Kaiser-Frazer-Corp., and Kaiser Cargo, Inc. which did the actual leasing, will pay rentals from $458,000 the first year to $3,915,000 the fifth year.

With aluminum from these plants, Kaiser plans to build bodies for K-F’s Kaiser and probably for Graham-Paige’s Frazer. Reason: up till last week K-F had no steel. All it had was promises. Graham-Paige was sure of some steel, but not enough both to permit Graham to get into auto production in Willow Run, now estimated for the end of April, and for K-F to build up a backlog of parts it needs for Kaiser production, now fixed for midsummer.

Optimistic Mr. Kaiser felt that, if necessary, the Civilian Production Administration would step in and allocate steel to K-F. In any case, K-F and Graham-Paige will not get enough to make more than 1,500 cars a day, a figure they hope (overoptimistically, say automakers) to reach next October. To boost production above this, they will have to make cars with aluminum bodies. This may prove to be one of the toughest jobs Kaiser has ever tackled.

Automakers have steered clear of aluminum bodies, because they are expensive (sheet aluminum is 20-30¢ a Ib. v. 3¢ for steel) and a brand-new technique must be evolved to make them. Skeptical Detroit, which has seen production dates at Willow Run edged farther & farther away, will not believe that Kaiser can do it until he does it.