HN 2: The British and their Works

flicts triggered by the currency reform. The legal adviser who
was consulted advised against proceedings, because the import
firm was a legal entity of the United Nations. An action which
could not be brought under German jurisdiction required the
approval of the Military Government, which was only granted in
exceptional cases. The adversaries therefore finally agreed on a
settlement. The carmaker paid one half of the value of the
goods, plus the importer’s costs and profit, in DM. Bonus-
Service’s co-operation was rewarded with a Volkswagen. 211
The free sale of the saloon on the German market remained
restricted for a while, even after the currency reform, by the
purchasing certificates in circulation. On account of bureaucratic
delays, a large number of these was issued even after the
deadline. On 1st July 1948 the motor industry had promised the
Economic Administrative Office that it would supply customers
having such purchasing certificates as a matter of preference.
Yet the complaints multiplied, especially against the Volkswagenwerk,
to the effect that this agreement was not being
honoured. The trigger for an unpleasant letter from the
Frankfurt authority to Heinrich Nordhoff was the latter’s
instruction to some VW dealers in mid-August 1948 to send
the owners of purchasing certificates to the back of the queue.
It was a fact that many of these customers were, after the currency
reform, not in a position financially to purchase the
vehicles. Volkswagen therefore met other delivery obligations,
especially in view of the fact that large numbers of buyers such
as doctors, professional people and industrial companies had
been passed over in the vehicle allocations. Furthermore the
Volkswagenwerk had received exceptional permission to accept
allocations in the amount of some 2,500 tonnes, because the
Frankfurt economic authority was unable to provide sufficient
iron quotas. Nordhoff therefore defended himself against
the accusation, pointing out among other things that they
ought to be able to deliver a larger quantity of cars which
were "not encumbered with a mortgage from the Industry
Administration". 212
Despite these problems, Volkswagen production experienced
an enormous upswing in the currency reform year, increasing
from 1,110 cars in January to 2,306 in December. In addition to
the improved materials supply, this upswing was helped by
the easing of the labour situation. In March 1948 the bizonal
authorities approved a wage increase at the Volkswagenwerk of
an average of 15 per cent, and the partial rescindment of wage
controls in November was followed by further income concessions
to the employees. In conjunction with the general
improvement in nourishment, this had a beneficial effect on the
physical condition of the VW workforce. The numbers off work
with doctor’s notes fell from 10-12 per cent at the beginning of
1948 to 2-4 per cent at the end of the year. As early as April the
absentee rate had fallen from 14.5 per cent to under 10 per cent.
By October it had fallen to 4 per cent, where it remained until
October 1949.
The endeavours to establish a core workforce bore first fruits,
which was probably due to a number of different factors: a prevailing
mood of optimism, higher wages and, with the improved
materials flow, the possibility of setting about the construction
of new housing. With its own finance, the company completed a
housing project started by the council, which in 1949 provided
174 accommodation units for factory employees. While the