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HN 2: The British and their Works

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General manager Münch approached the supply headquarters<br />

of the German mining industry concerning the supply problems.<br />

Its representatives declared <strong>their</strong> willingness to supply<br />

the Volkswagenwerk with the required sheet metal, while reserving<br />

proprietary rights. In return the company undertook to<br />

deliver an appropriate quantity of vehicles. 82 <strong>The</strong> mining industry<br />

order was followed by a new order from the "L<strong>and</strong>eswirtschaftsamt"<br />

(State Economic Office) of Lower Saxony in mid-<br />

June 1947 for 1,580 cars. This secured for the Volkswagenwerk a<br />

firm production of 2,180 cars over <strong>and</strong> above the comm<strong>and</strong>ed<br />

production, but far exceeded its capabilities. During the discussion,<br />

Wenk requested binding information on monthly<br />

production to year end, unsurprisingly since he had had to scrap<br />

his original planning <strong>and</strong> at the end of May 1947 had to decrease<br />

the called-in production surplus for the current year from 4,000<br />

to 2,300 vehicles. Meanwhile, general manager Münch did not<br />

feel able to give reliable figures for the course of production,<br />

referring to among other things the acute labour shortage<br />

which had occurred as a result of the sudden withdrawal of 300<br />

Lithuanian workers. In view of the situation as presented, Wenk<br />

regarded further orders to the Volkswagenwerk as being "no<br />

longer justifiable" <strong>and</strong> threatened to channel all further fleet<br />

allocations to the Daimler-Benz <strong>and</strong> Opel corporations. 83<br />

Startled by this warning, Münch held out the prospect of a small<br />

number of Volkswagens for export.<br />

In mid-1947 the Volkswagenwerk could not complain about a<br />

lack of orders. Regrettably, the boom in dem<strong>and</strong> coincided with<br />

a worsening of the material supply situation. Reduced raw<br />

materials allocations <strong>and</strong> power cuts averaging 40 per cent at<br />

the rolling mills also made themselves felt at the supplier firms<br />

<strong>and</strong> had a serious effect on material supplies. <strong>The</strong> situation for<br />

the purchasers at the Volkswagenwerk was made more acute by<br />

the suppliers’ refusal to deliver <strong>their</strong> products without recompense.<br />

Because the company had not kept its promises, they<br />

operated a form of "passive resistance". Some sent almost daily<br />

reminders to supply the vehicles promised them. <strong>The</strong> closer currency<br />

reform loomed, the more closely the overvalued<br />

Reichsmark resembled worthless paper. <strong>The</strong> barter economy<br />

became widespread, <strong>and</strong> many materials in short supply could<br />

only be had via swap deals.<br />

By a tacit underst<strong>and</strong>ing with the "Hauptverwaltung Straßen<br />

und Verkehr" in Bielefeld, motor manufacturers such as<br />

Daimler-Benz, Opel, Ford <strong>and</strong> Büssing could normally earmark<br />

five per cent of <strong>their</strong> production for <strong>their</strong> suppliers. This was a<br />

more telling argument than the "m<strong>and</strong>atory priority" of the<br />

Volkswagenwerk, which made less <strong>and</strong> less of an impression on<br />

the suppliers. And the Economic Administrative Office announced<br />

that it could not allocate raw materials because there were<br />

no more available. For the rest, the priority neither applied to<br />

the manufacturing industry, nor was it sufficient to support<br />

injunctions on the steel industry. For textile allocations, for<br />

example, the degree of urgency was only acknowledged if the<br />

military government paid the full value of the raw materials<br />

in dollars. This however it refused to do since not all the cars it<br />

needed had been produced. 84<br />

36 37<br />

SHORTAGES OF RESOURCES

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