WITHDRAWN University of
united states tariff coMMissteOffois Library
Washington, p.Cat Url^na-CMirpaifln
/apta-w-97
TC Publication 203	April 25, 19^7
TARIFF COMMISSION SUBMITS REPORT TO THE AUTOMOTIVE AGREEMENT ADJUSTMENT ASSISTANCE BOARD IN ADJUSTMENT ASSISTANCE CASE PERTAINING TO CERTAIN WORKERS OF AMERICAN MOTORS CORPORATION*S MILWAUKEE, WISCONSIN PLANT
The Tariff Commission today reported to the Automotive Agreement Adjustment Assistance Board the results of its investigation No, APTA-W-9, conducted under section 302(e) of the Automotive Products Trade Act of 1965« The Commissions report contains factual information for use by the Board, which determines the eligibility of the workers concerned to apply for adjustment assistance. The workers in this case were employed in the Milwaukee, Wisconsin plant of the American Motors Corporation.
Only certain sections of the Commission^ report can be made public since much of the information it contains was received in confidence. Publication of such information would result in the disclosure of certain operations of individual firms. The sections of the report that can be made public are reproduced on the following pages.
THE LIBRARY 8f TRi
JUl 24 be/
mmm of ilunoisU.S. Tariff Commission April 25, 1967
Introduction
In accordance with section 302(e) of the Automotive Products Trade Act of 1965 (79 Stat. 1016), the U.S. Tariff Commission herein reports the results of investigation (APTA-W-9) concerning the possible dislocation of certain workers engaged in the production of automobile bodies at the Milwaukee, Wisconsin plant of the American Motors Corp.
The Commission instituted the investigation on March 8, 1967, upon receipt on March 6, 19^7 > of a request for investigation from the Automotive Assistance Committee of the Automotive Agreement Adjustment Assistance Board. Public notice of the Investigation was given in the Federal Register (32 F.R. 4003) on March 11, 1967*
The Automotive Assistance Committee's request for the investigation resulted from a petition for determination of eligibility to apply for adjustment assistance that was filed with the Assistance Board on February 28, 1967, by the International Union, United Automobile, Aerospace & Agricultural Implement Workers of America (U,A.W.) and its Local No. 75, on behalf of a group of workers at the Milwaukee plant of American Motors Corp. Neither the petitioners nor any other party requested a hearing before the Commission, and none was held.
The petitioners alleged that the transfer of production of automobile si/ from the Milwaukee plant to the American Motors Corp. plant
l/ Although the petition refers to automobiles supplied from the Milwaukee plant, the reference probably should have been to automobile bodies, as complete automobiles are not produced at that plant.in Brampton, Ontario resulted in extensive layoffs at Milwaukee during the January 19^5-January 1967 period--including the permanent layoff of
2,000	workers on January 9, 19^7• The petitioners further alleged that the pre-October 1966 layoffs are attributable to a decrease in the number of automobilesi/ supplied to the Canadian market from the Milwaukee plant and that the layoffs beginning in October 1966 were caused by increased imports into the United States of automobiles produced in Canada, Both of these developments were attributed to the Automotive Products Trade Act of 1965 (APTA).
The Commission conducted investigation APTA-W-9 concurrently with investigation APTA-W-10, relating to the possible dislocation of certain workers engaged in the production of complete automobiles at American Motors Corp's., Kenosha, Wisconsin plant. Much of the information developed in connection with APTA-W-9 is also pertinent to APTA-W-lOj because of significant differences in the two investigations, however, separate reports have been prepared.
The information reported herein was obtained from American Motors Corp., the major U.S. automobile manufacturers, the International Union, U*A«W», the Commission's files, and through fieldwork by members of the Commission's staff.
Hereafter in this report the American Motors Corp. is referred to as AMC.
1/ Substitute "automobile bodies" for "automobiles"; see footnote on preceding page.The automotive product Involved—automobile bodies
Built-up bodies for conventional passenger automobiles are the articles under consideration in this investigation. Such bodies maybe of either unit-body or perimeter-frame construction; they constitute complete bodies at least to the extent that the major sheet metal components have been welded or bolted together. Bodies for special purpose motor-vehicles, such as the "Jeep" and "Scout", and body components that are shipped in K-D (knock-down) kits for subsequent assembly are not included within the scope of this investigation.
Imported automobile bodies are dutiable under item 692.22 of the Tariff Schedules of the United States at the rate of 6.5 percent ad valorem; if imported from Canada for use as original motor-vehicle equipment, hovever, they are duty-free under item 692.23.
American Motors Corp. and its automotive division
AMC, with headquarters in Detroit, Michigan, is a large corporation •which had net sales valued at about one billion dollars in each of the years 1960-66. AMC's predecessor was incorporated in Maryland in 1916 as Nash Motors Co., vhich, in turn, was the successor to Jeffrey Motor Co. In 1937 the corporate name was changed to Nash-Kelvinator Corp., after merger with Kelvinator Corp*(a large manufacturer of home appliances).
In 195^ the present name was adopted, after merger with Hudson Motor Co.AMC has two major divisions: Automotive and Appliance. The Appliance Division produces and sells, under the "Kelvinator" and other trade names, major household appliances such as refrigerators, freezers, dehumidifiers, laundry equipment, ranges and room air-conditoners. The principal manufacturing facility of this division is located in Grand Rapids, Michigan.
The Automotive Division operates one plant in Milwaukee and two in Kenosha, Wisconsin (the Main plant and the Lake Front plant), and one in Brampton, Ontario. Although the workers herein concerned were employed in the Milwaukee plant, an understanding of the interrelationship of the four plants is important.
AMC produces three series of automobiles: the American (the rann.ll-est in size), the Rebel (formerly the Classic), and the Ambassador. A separate single-model car—the Marlin, is included with the Ambassador series for the purpose of this report. The three series are produced in a total of 26 models.
*****
United States and Canadian production and trade
Since the number of automobile bodies produced during any model year is virtually identical to the number of automobiles produced, the data on automobile production in the United States and Canada are used herein asa measure of the number of automobile bodies produced in the two countries.l/
Unlike the experience of AMC which attained a record level of production in the 1963 model year, aggregate U.S. and Canadian production of automobile bodies increased annually in the 1963-65 model years. Thereafter, U.S. annual production decreased slightly from a record level of 8.8 million units in 1965 'to 8.6 million units in 1966. Canadian production attained a record high of 673,000 units in 1966. Both U.S. and Canadian production was substantially lower in the first seven months of the 1967 model year than in the like period of 1966 (table 3> page 7).
The total U.S. output of automobile bodies in the period November-February of the 1964 model year (2.9 million) was slightly greater than in the comparable period of 1967 {2.8 million). Canadian output was about equal in that period of 1964 to that in 1967 (230,000 and
231,000	automobile bodies, respectively).
No trade has occurred in built-up automobile bodies as such between the United States and Canada; such bodies enter the trade between the two countries in the form of completed automobiles. Before the 1965
l/ These data are based on conventional passenger automobile production by American Motors Corp., the Chrysler Corp., the Ford Motor Co., and General Motors Corp.; they do not include such special purpose motor-vehicles as the "Jeep” and "Scout". If these other motor-vehicles had been included, the aggregate data would not be significantly different from those for the four concerns. The data also do not include kits (K-D kits) prepared for export which contain body parts for assembly into automobiles in other countries.model year there were no automobiles imported from Canada by the four major U.S. automobile producers. Since then, increasing numbers hare been imported—2,000 in 19^5* 9^,000 in 1966 and 136,000 in the first seven months of the 1967 model year* U.S. exports of automobiles to Canada increased annually from 7,000 units in the 1963 model year to
59,000	units in 1966, and to 120,000 in the first seven months in the 1967 model year* As a result of these changes Canada became a net exporter of automobiles to the United States; during the first complete model year after the United States-Canadian automotive agreement became effective, Canada attained a net export balance of 35,000 units* During the first seven months of the 1967 model year, Canada was a net exporter to the United States of 16,000 automobiles*
* * * * *Table 3.—United States and Canadian production and exports of automobile bodies, model years 1963-66, beginning of year to Feb. 28 of model years 1966 and 19^7^ and November-February of model years 196k and I96Y
_(in thousands of automobile bodies)___
Period
U.S. production
Total 2/
Model year—
1963—-—.....—-
1961).------------------
196	5-----------------
1966	------------------
Beginning of model year to Feb. 28—
196	6------------------
1967	—.............
Model year 19 6^-s
November--------------
December--------:------
January-----------------
February----------------
Model year 1967: :
November-----*-----------
■ December----------------
January-----------------
February----------------
7,176
7,803
8,793
8,579
ii-,766
^,338
735
73^
7^0
671
831
761
668
517
Exported to—
Canada
7
11
28
59
35
120
1
1
1
1
23
2k
15
15
Other
countries
83
97
108
109
73
10
o
8
7
■n
Canadian production
Total 2/
U6j
563
585
673
368
335
60
57
60
53
6k
59
56
52
Exported to—
The United States
2
9h
k9
136
2k
2k
25
214-
Other
countries
5
9
12
10
7
7
1
1
1
1
1
1
1
1
U.S. net exports (+) or imports (-) with Canada
+ 7 +11
+26
-35
-Ik
-16
+• 1 + 1 + 1 + l
- 1
-10
-9
1/ The data are based on the number of conventional automobiles produced and exported during the periods indicated by American Motors Corp., the Chrysler Corp., the Ford Motor Co., and General Motors Corp. The data do not include bodies for spec?j*CL purpose vehicles such as the MJeepn or ri Scout." The data do not include kits (K-D kits) prep^ed for export which contain body parts for assembly into automobile bodies in other countries.
2/ Because of rounding, figures do not add to totals shown.
Source: U.S. producers of automobiles0