HN 2: The British and their Works

Supplies of raw materials still determined day-to-day business,
even under general manager Heinrich Nordhoff, especially since
the shift to a firm global quota at the beginning of March 1948
only partially fulfilled company expectations. The new procedure
scheduled allocation of 10,000 tonnes of iron and steel
per month, which thus set a limit to the number of vehicles
which could be produced in 1948. Up to this limit, according to
Fritz Wenk, supplies of parts and other materials were assured.
Beyond this limit, shortages must be expected, especially of
tyres. The quota of 10,000 tonnes included the commanded production,
exports and the orders of fleet customers such as the
railways or the post office. Because there was as yet no decision
as to how this global quota was to be distributed among the
individual motor manufacturers, the Volkswagenwerk could not
make reliable production plans for the current year before the
end of March 1948.
This delay presented problems, as Purchasing had made its dispositions
at the end of 1947 on the basis of the "Rothenburg programme".
It was now doubtful whether this programme could
be fully covered by the global allocation, and also whether a part
of the raw material quantities received in 1948 could be processed
in production due to a lack of other materials. An unbalanced
store involved certain risks in view of the forthcoming
currency reform. Apart from this, there was a fundamental disagreement
between the "Verwaltung für Wirtschaft" and the
"Hauptverwaltung Straßen und Verkehr" about whether it was a
matter of a global or an advanced allocation. These differences
of opinion could have a deleterious effect on the motor vehicle
industry. 201
As had been feared, the new quota arrangement brought with it
no perceptible improvement in the allocation of raw materials
and components. In March 1948 1,200 cars left the assembly hall
– 100 less than planned. The following month only 1,250 cars
were built instead of 1,400. In his factory report to the Board of
Control, Major Hirst gave the reason for this as problems in
materials procurement: the deliveries were late in coming, there
were shortages of rubber mouldings and disc wheels, and sheet
steel was scarce, as were the electrical components supplied by
Bosch. The "Auslands-Handelskontor" (Foreign Trade Branch)
and the Joint Export Import Agency had intensified their efforts
to import the materials which were in short supply. But these
were sometimes three times more expensive from foreign
suppliers.
The production meetings in the first half of 1948 revealed a
similar picture. Scarce, and sometimes unobtainable, were
rubber door seals, tyres and tubes, rubber mats, seals, fibre
sheets for the luggage boot, petrol pipes, brake drums and
paints. The shortfall of 68 bodies in mid-May 1948 was due to
the lack of rear side panels. At the end of June the upholstery
line shut down for lack of springs for the front seats. In addition
production manager Steinmeier announced backlogs of 172
bodies and 422 gearboxes. It was explained to him in this
connection that production in the assembly jigs had come to a
halt four times that month because heated discussion had
broken out among the workforce regarding the reduction of
working hours. During the discussion on this topic, the factory
management had complained that the sale of foodstuffs within
the factory inhibited production. 202
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THE NEW MAN