AUTOS: Disaster's Bottleneck

At General Motors' modern, air-conditioned brick plant in Livonia, Mich, one day last week, the second shift had just filed in to start a normal day's work turning out Hydra-Matic transmissions for G.M., Lincoln, Kaiser, Hudson and Nash. Moments later, sparks from a welder's torch ignited an oil-soaked conveyor belt; suddenly flames leapfrogged from one drip pan to another. After that said Foreman Floyd Davis, everything "went up like a torch."

Volunteer firefighters made the mistake of turning a hose on the blaze, only helped to spread it. Soon a blazing oil tank set a tar roof afire, sending a shower of burning tar on fleeing workers. Firemen came by scores from half a dozen towns, but were helpless. Three workers and one fireman perished* and 40 others were injured. Solvents, cleaning compounds, acids and gases burst into angry, hungry flames that were whipped by a brisk west wind. Steel columns twisted and dipped like trees bowed by an ice storm. It was the worst fire in the history of Detroit, the worst in the U.S. for any single plant.' G.M.'s estimated loss: $70 million in plant, tools and other equipment. Livonia was insured for only $28 million.

But the bigger economic loss was to the whole industry's production and employment. It was estimated that 60,000 workers would be affected immediately, and that total U.S. auto production would be cut 10% to 15% for the rest of the year. Cadillac, which uses Hydra-Matic transmission exclusively, cut down to a five-hour day right away. Hard-hit Pontiac, which uses Hydra-Matic in 85% of its cars shut down entirely. Oldsmobile (98% Hydra-Matic) closed for two days, then opened for a four-hour-day schedule.†

Ford's Lincoln-Mercury division (100% Hydra-Matic) with a 10-20 days' supply, prepared to expand Mercury production, cut back on Lincolns. Hudson (58%), shut down for a model change, has "a couple of weeks' supply"; Nash (33%) has enough for a few weeks, but has been shut down by a supplier's strike; Kaiser (60%) has been closed since June. Said G.M. President Harlow Curtice after inspecting Livonia: "At this moment every facility ... is being concentrated on the extensive rebuilding job that faces us . . ." Curtice moved fast, this week took steps to lease 1,500,000 sq. ft. of idle Kaiser Motors Corp. space at Willow Run to set up an emergency transmission plant.