CCCT MEETING 12/21/82 CCEA MEETING: 12/21/82

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84T00109R000100070002-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 17
• Document Creation Date: December 20, 2016
• Document Release Date: August 1, 2007
• Sequence Number: 2
• Publication Date: December 20, 1982
• Content Type: MEMO

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EXECUTIVE SEARIAT
Routing Up
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ACTION
INFO
DOATE
INITIAL
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DCI
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DQQ1
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EXDIR
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D/ICS
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DDI
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DDA
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DDO
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DDS&T
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Chm/NIC
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GC
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IG
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Compt
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D/EEO
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D/Pers
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D/OEA
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C/PAD/OEA
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SA/IA
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A0/DCI
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C/IPD/OIS
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 CCEA Meeting:
DDj_ ^x_1.7_
Counsellor
DA'rE: 12/20/82
SUI~JECT: _ CCCT Meeting:
NUMBER: 0 7 7 6 6 8 CA DUE BY:
12/21/82 - 10:00 a.m. - Room.248 OEOB
12/21/82 3:00 l.m. - Roosevelt Room
ACTION
ALL CABINET MEMBERS ^
A>
U
N
USTR
CEA
Education
Energy
Transportation
HUD
HHSS
Labor
Agriculture
Interior
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CABINET AFFAIRS STAFFING MEMORANDUM
Attorney General
Defense
Treasury
State
OSTP
ACTION FYI
Baker
Deaver ^
Clark ^
Darman (For WH Staffing) ^
Harper Gam'
Jenkins ^
13
13
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^
0
0
^
CCCT/Gunn E, 0
CCEA/Porter ^
CCFABoggs ^ ^
CCHR/Carleson ^ ^
CCLP/Uhlmann ^ ^
CCMA/Bledsoe ^ ^
CCNRE/Boggs ^ ^
RE1VIARKS: Agenda
items for these meetings are:
CCCT: 1) Non-Federal Export Financing/CM#211 (paper to be
Distributed)
2) Automobile Industry Review/CM#155 (paper attached)
3) Steel Industry Trade Issues/CM#096 (paper to be distributed
CCEA: 1) Capital Formation/CM#325 (no paper)
RE' URN TO: ^ Craig L. Fuller i1 Becky Norton Dunlop
Assistant to the President Director, Office of
for Cabinet Affairs Cabinet Affairs
456-2823 456-2800
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THE SECRETARY OF COMMERCE
O ~~ I Washington, D.C. 20230
'~4tn Of 6P
'LEMORANDUM FOR Cabinet Council for Commerce and Trade
SUBJECT: Briefing Papers for CCCT Consideration
Attached is the Quarterly Report to the CCCT on the Automobile
]Industry that will be discussed at Tuesday's meeting. In
addition, I am including two papers on issues of concern to the
Council that we do not have time to discuss. The first is a
preview of the Industrial Outlook for 1983 that will be
released later this month. The second paper explains the
recent behavior of "command GNP," an alternative way of
measuring GNP that is adjusted for changes in our terms of
t:r ade.
Secretary of Commerce
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UNITED STATES DEPARTMENT OF COMMERCE
The Under Secretary for Economic Affairs
Washington, D.C. 20230
MEMORANDUM FOR: Cabinet Council on Commerce and Trade
FROM: Robert G. Dederick
Under Secretary for Economic Affairs
SUBJECT: Status Report on the U.S. Automobile Industry
OVERVIEW
The domestic auto industry continued to be weak in the third quarter as the four
largest producers reported a combined loss of $0.2 billion. Though profits
traditionally are poor in the summer quarter because of the costs of introducing
new models, the loss reemphasizes that cost cutting measures accomplished thus
far are only part of the solution to the industry's financial problems. At current
sales volumes, significant additional cost cutting would be. necessary to restore the
industry's financial health. There is no indication such cost cutting is likely to
occur. On the contrary, incidents such as the strike by Chrysler's Canadian
workers indicate increasing resistance to cost reduction programs.
Sales volumes are unlikely to increase on a sustained basis until the economy turns
up. Consumers currently buying new cars have household incomes averaging 60
percent above the driving age population as a whole. While new car buyers
generally have higher than average incomes, the difference normally is not this
large. The economy will need to improve before other members of the driving age
population begin to purchase new vehicles in greater volumes.
All of the industry's profits this year are from nonrecurring or nonconventional
sources. More than the industry's entire $0.5 billion profit for the first three
quarters of 1982 came from sources such as currency translation gains, asset sales,
and finance and insurance subsidiaries' income. These areas added over $1.2 billion
to pre-tax income. In contrast, we estimate that the firms lost $0.7 billion before
taxes on traditional operations.
Domestic car sales generally stayed flat in the second and third quarters, with
some improvement in late October and the month of November due to
manufacturers' incentive programs to reduce 1982 model inventories. As these
stocks run down, manufacturers may need to consider expanding the few existing
incentive programs for 1983 models. There is no evidence yet of a sustained
increase in auto sales. Domestic car sales through November were 9.3 percent
below sales for the first 11 months of 1981. Domestic car sales this year will be at
the lowest level since 1961, although the driving age population has increased 45
percent since that year.
Import car sales are down 5.8 percent this year. But, because import sales declined
less than domestic deliveries, the import share of the market through November
rose 0.7 percentage points above the 27.0 percent share for the first 11 months of
1981. Japanese car sales declined only 4.3 percent through November, increasing
their share of import sales to 81 percent, up from 80 percent for the same period in
1981.
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Trucks have been the only bright spot in the domestic manufacturers' sales picture.
Domestic truck sales were up 16.7 percent through November. With the successful
introduction of domestic compact trucks, the import share of the truck market was
15.9 percent, down from 19.7 percent through November 1981. Even though their
share of total sales has declined, in recent months the Japanese have recaptured
some of the small truck market through aggressive pricing and marketing
incentives. In May, domestic compact trucks captured 57 percent of the small
pickup market; by October, their share had fallen back to 40 percent. Responding
with their own incentives, the domestic share recovered to 47 percent in
November.
Low production levels in the industry have precluded any increase in auto
employment. The number of auto jobs in the third quarter was essentially
unchanged from the second quarter level, declining from 692,000 to 691,000. In
early December, over 260,000 employees were on indefinite layoff. Despite high
unemployment, Chrysler's Canadian members of the UAW went on strike in early
November because they were dissatisfied with the company's contract offer. U.S.
workers also rejected Chrysler's offers, although they voted against striking. As a
result of the Canadian strike, Chrysler laid off 4,600 U.S. workers . Though a
settlement has been reached, high unemployment in the auto industry will continue
to put political pressure on Congress and the Administration for action to aid the
industry. Scheduled production levels for early 1983 do not indicate any significant
employment increase in the near future.
Except for minor adjustments, our previous projections for industry profits and
cash flow this year are unchanged. We have reduced our estimate of the cash flow
deficit from $5.1 billion to $4.7 billion. The primary reason for this revision is a
cutback in GM and Chrysler capital spending levels for 1982. The companies
appear to be curtailing capital spending to minimize the cash shortfalls. Our
previous two reports had indicated this was a possibility.
Since domestic manufacturers have found themselves short on capital, they are
targeting their investment dollars judiciously. As a consequence, the firms are not
putting capital into areas where they believe they will be unable to compete with
the Japanese. This may point to an eventual abandonment of U.S. production for
the small car market. GM plans to replace its Chevette line with domestic
assembly of either Toyotas or Isuzus, plus additional Japanese imports marketed
through GM dealers. Ford announced plans to close down a California subcompact
plant next June, claiming that import competition is too strong in the state. If
these trends continue, the bulk of U.S. subcompact production will, in effect, be
shifted to Japan.
Industry sales and profits should improve in 1983. The present consensus of
econometric forecasters and industry analysts is that car sales will be between 8.6
million and 9.5 million units, up from this year's estimated level of 7.9 million.
Forecasts of 1983 truck sales are generally in the range of 2.7 to 2.9 million units,
up from a projected 2.5 million this year. Our next report will examine sales and
financial prospects for 1983.
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SALES
Through November, total passenger car deliveries in the U.S. amounted to 7.3
million units, indicating an annual sales rate of about 7.9 million units. Sales in
1982 trail the 1981 level by 8.3 percent. Domestic car sales generally remained flat
in the second and third quarters, averaging a seasonally adjusted annual rate of 5.5
million units inl,both periods. Late October and November sales data indicated
improvement as manufacturers offered rebates, dealer incentives, and low cost
financing to reduce 1982 model inventories. This is not convincing evidence,
however, of the long-awaited upturn in the car market. A recovery in aggregate
economic activity will be necessary before car sales increase on a sustained basis.
Domestic car sales totalled 5.3 million units through November, down 9.2 percent
from last year's poor showing for the same 11 month period.
Imported car sales rose in the third quarter. Volume averaged an annual rate of 2.2
million units, up from the 2.0 million unit rate of the second quarter. In October,
import volume rose to an annual rate of 2.4 million units, and in November, it was
up to 2.6 million units. Through November, imports achieved a 27.7 percent
market share. This is 0.7 percentage points higher than the 27.0 percent share for
the first 11 months _of .1981. Import sales through November were 5.8 percent
below last year's level.
GNI's strategy for complying with fuel economy standards was dealt a serious blow
this year, as diesel car sales declined dramatically. For the first 10 months of
1982, diesel engines were installed in only 4.6 percent of all new cars; this was
down from 6.0 percent in 1981. There are several reasons for this decline.
Consumers had commonly expected diesel fuel prices to be lower than gasoline
prices. Today, the reverse situation is often true. In addition, gasoline prices are
lower than last year, reducing consumer interest in fuel economy. Continuing price
premiums for diesel engines also have hurt sales. Still further, GM's diesels, in
particular, are developing a poor reputation for durability and reliability. While
overall diesel sales declined 32 percent through October, GM's declined 34 percent;
this is in spite of the fact that GM has expanded the number of car lines offering
diesels.
The drop in diesel sales concerns GM because the company had planned to use
diesels to avoid shifting its volume mix away from more profitable larger vehicles.
The diesel engine has allowed GM to build fuel-efficient larger vehicles rather than
trying to convert the company's customers to small cars. GM expected diesels to
take at least 15 percent of the firm's sales by 1985. Through October, the 1982
share was 6.1 percent, down from 8.1 percent during the same period in 1981. In
response, GM has cut diesel prices (for example, the diesel engine is now available
at no charge on most Cadillacs, whereas it previously was offered as an extra cost
option) and has extended warranties on the engine. If GM's diesel engine
penetration does not improve, the corporation will have-to reevaluate its fuel
economy standards compliance strategy. The company already has announced it
will need to use previously-earned credits to comply with the 1983 passenger car
fuel economy standard.
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Through November, truck sales continued to exceed last year's levels. Truck sales
through the month were up 11.5 percent over the same period in 1981. With the
import share down to 15.9 percent from 19.7 percent through November 1981, the
bulk of the overall gain has come from increased domestic truck sales. Benefiting
from the introduction of new small models by American manufacturers, total
domestic truck deliveries were up 16.7 percent through November. Domestic light
truck sales increased 21.7 percent through the same period. Captive imports
(imported trucks marketed by domestic manufacturers) declined 40.9 percent, and
other imported truck sales went up 7.1 percent. Hindered by the 25 percent tariff
on imported trucks, Toyota, Datsun, and the other independent truck importers
have not kept up with the market growth. Domestic manufacturers are phasing out
small import trucks and are replacing them with new domestic models; U.S.
companies thus are capturing most of the truck sales increases.
These market share gains may not continue for the domestic companies. With sales
of Japanese passenger cars constrained by the Voluntary Restraint Agreement, the
Japanese have put new emphasis on truck sales. Aggressive pricing and marketing
programs have helped them reduce the gains made by the domestic manufacturers.
In May, domestic compact trucks captured 57 percent of the small pickup market;_.____
by October, their share had declined to 40 percent. After implementing their own
incentive programs, the domestic share increased to 47 percent in November.
Medium and heavy truck sales continue at poor levels. In the absence of an
improvement in the aggregate economy, these sales have failed to turn around.
Through November, deliveries were down 19 percent from the same period last
year.
198.2 Forecast
Our outlook for passenger car sales this year has not changed significantly from our
previous report. Total passenger car deliveries should be about 7.9 million units, an
eight percent decline from 1981's level. This compares with our previous estimate
of ;7.8 million units. Domestic sales will be about 5.7 million units, while import
sales will be about 2.2 million units.
Our truck sales outlook for 1982 is unchanged. Total sales should be 2.5 million
units (2.1 million domestics and 0.4 million imports), a 10 percent increase over
1981. Car and truck sales trends are shown in Exhibits 1 and 2.
19&3 Forecast
The current consensus of forecasters calls for car sales finally to improve in 1983
after declining for four consecutive years. The bulk of the projections by industry
analysts and econometric forecasters range between 8.6 and 9.5 million units, with
an average figure of 9.3 million. This is down slightly from earlier; a survey of
industry analysts in August 1982 projected 1983 sales of 9.5 million units.
Trucks sales should continue to improve next year. Current forecasts are generally
in the range of 2.7 to 2.9 million units.
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PRODUCTION
Seasonally adjusted domestic automobile production rose again in the third quarter
to an annual rate of 6.1 million units, up from 5.4 million* in the second quarter,
and 4.2 million in the first. However, production through November still lagged 21
percent behind last year's pace. Moreover, in an effort to reduce dealer
inventories, fourth quarter production has been cut to a scheduled 4.7 million unit
rate. Present industry plans call for total 1982 car output of 5.1 million units, down
18 percent from last year.
Truck output remains above last year's level. Through November, domestic
production ran 15 percent over the 1981 pace. Total production for 1982 is
scheduled at 1.9 million units, 13 percent more than last year's total.
Early plans for first quarter 1983 passenger car production call for more than a 35
percent boost in output over the same period this year. Production is scheduled at
an annual rate of 5.8 million units. With inventories expected to be in line with
sales at the end of this year, this output level seems consistent with a moderate
growth in sales next year. Sales probably will dip temporarily when manufacturers'
incentive programs end. However, such a short-term setback should not jeopardize
planned production increases.
EMPLOYMENT
Auto industry employment remained flat in the third quarter. Estimated
employment by the five domestic auto manufacturers averaged 691,000 persons,
down negligibly from 692,000 in the second quarter., Indefinite layoffs averaged
219,000, as compared with 240,000 in the first two quarters of 1982. The reason for
the layoff decline is not clear. Some of the workers may have been dropped from
the count because they were unemployed for a long period. After awhile, the auto
companies no longer include all workers in the layoff estimates. Some may have
found employment elsewhere. In any case, the decline was temporary; by early
December, indefinite layoffs exceeded 260,000. Because of definitional problems
with the layoff figures, we prefer to emphasize the employment estimates.
Despite the planned production increases in early 1983, substantial auto industry
employment gains are not expected soon. A similar situation was evident in 1982.
Although second quarter car and truck production was 41 percent over the first
quarter levels, industry employment rose a mere four percent. Industry efforts to
improve productivity mean that 1983 production increases will not lead to
commensurate employment gains.
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CHRYSLER LABOR CONTRACTS
Chrysler's first tentative agreement with the UAW on a revised contract for U.S.
workers fell apart as 70 percent of the union members rejected the pact when the
vote was taken at the local level in early October. The main reason for the
rejection was the contract's failure to include an immediate pay raise, even though
it would have restored cost-of-living allowances. Normally such a rejection would
lead to a strike shortly thereafter. However, because of Chrysler's precarious
financial situation, the union leadership polled the work force on October 26 to
determine whether members really wanted a strike. Given a choice of going on
strike or resuming talks with Chrysler, 70 percent of the members favored staying
on the job.
Chrysler also failed to reach agreement with the UAW in Canada. On November 5,
the 9,600 unionized workers struck Chrysler's six Canadian plants. Chrysler
immediately laid off 2,500 U.S. workers at 16 plants providing parts for Canadian
vehicles. One week later, Chrysler laid off an additional 2,100 U.S. workers.
Negotiations between the company and the UAW resumed in Canada on November
20, and in the United States on November 22. On December 9, new tentative
agreements were reached in both countries. Each agreement includes an
immediate pay increase plus reinstatement of cost-of-living increases. The
Canadian workers immediately approved the offer, and returned to work on
December 13. The proposal is expected to be ratified by U.S. workers this week.
Chryslers' acceptance of union demands for pay increases does not bode well for
reducing the Japanese manufacturing cost advantage. The lack of wage restraint
means that productivity must be emphasized more than ever to lower
manufacturing costs.
DEALER DEVELOPMENTS
Production cutbacks and increased sales resulted in an improved inventory situation
for domestic car dealers. Domestic car inventories were 1.16 million units on
December 1, down from 1.36 million units at the end of the second quarter. This
translated into a 52 days' supply of inventory on December 1, sharply below the 79
day's supply on July 1. Thus, the manufacturers' costly programs to clear out
inventories of 1982 models have been successful. The reduced inventory levels will
allow any sales increases to be rapidly converted into production increases. This
stock clearance, coupled with recent interest rate declines, will improve dealer
financial health by cutting carrying costs.
The domestic car dealer population continued to shrink in the third quarter, with a
net reduction of 303 outlets. During the 1982 model year (October 1981 through
September 1982), the domestic car dealer body declined by 1,267. This was a much
larger loss than the 1981 model year decline of 758 outlets. Since there is a
long-term secular trend toward fewer car dealers, closings will not stop when car
sales increase.
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FINANCIAL PERFORMANCE
During the third quarter, the four major domestic auto manufacturers lost $218
million, compared with a $960 million loss in the third quarter of 1981. Industry
profits traditionally are poor in the third quarter. Production is low because plants
must be shut down for conversion to new models. The conversion costs also reduce
third quarter profits. The smaller loss this year than in 1981 indicates substantial
industry progress in cutting costs.
Through the third quarter of 1982, the industry had a combined net income of $511
million, up from a $980 million loss in the first three quarters of 1981. The industry
still is losing money, however, on its regular operations. Exhibit 3 outlines the
sources of profits. More than 100 percent of the industry's pre-tax profits came
from nontraditional sources of income, such as currency translation gains, shares in
subsidiaries' income, and asset sales. We estimate that traditional operations lost
$0..7 billion through the third quarter of 1982, while the other profit sources added
over $1.2 billion to pre-tax income. This is a further indication that cost cutting
measures taken thus far will not solve the industry's financial problems unless sales
strengthen.
Liquidity did not improve in the third quarter; net cash flow declined by an
additional $1.1 billion. The net cash deficit through the third quarter totalled $3.5
bil.lion.
Exhibit 4 provides our estimate of the industy's net cash flow from operations this
year. Our expectation is for a cash deficit of $4.7 billion. This is a slight
improvement over the $5.1 billion deficit forecast in our last report. The main
reason for this change is lower than expected capital spending by GM and Chrysler.
We now look for industry capital spending to decline $2.8 billion (22 percent) from
last year's level.
We have reduced our forecast for the industry's 1982 earnings from our previous
estimate of $0.8 billion to $0.7 billion. This revision is due to a number of factors:
Japanese erosion of U.S. sales in the small truck market, the high marketing costs
of the industry's incentive programs to clear out 1982 model inventories, increased
depreciation and amortization expense, and the impact of the Chrysler strike. This
year's earnings still will be a decided improvement over the industry's 1981 loss of
$1.3 billion.
Earnings for the industry will continue to improve in 1983. Our next report will
provide preliminary estimates for the upcoming year.
OTHER AUTO NEWS
"Lame Duck" Session
The "lame duck" session of Congress began on November 29. The main pending
auto issue is domestic content legislation, which passed the House by a narrow
margin on December 15. The bill passed with an amendment which substantially
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weakened the bill. Senate action before adjournment is unlikely. The
Administration is working to maintain strong opposition to the bill. In order to
delay Senate consideration, Senator Bob Packwood, Chairman of the Senate
Committee on Commerce, scheduled hearings on domestic content on December
16-17. Secretary Baldrige and other Administration officials have testified on the
bill,. Other issues of general interest to the auto industry that may be handled
during the session are jobs programs, administrative regulatory reform, and the
gasoline tax.
JJa Lanese Production in the U.S.
Honda began production of four-door Accords in its new Marysville, Ohio assembly
plant on November I. The plant has an assembly capacity of 150,000 units per
year; however, it will not produce at this rate until late 1984. To ensure quality,
the. plant scheduled production of only 600 cars in November, escalating to 1,200
units in December. Honda claims a U.S. content of about 50 percent.
GMI has agreed to sell 200,000 Isuzu subcompacts in the U.S. market beginning in
1984, and to import 100,000 minicars from Suzuki in the mid-1980's. According to
the trade press, the company also has agreed to produce a small Isuzu car in a
Midwest plant at a rate of 300,000 per year. GM has denied the Isuzu production
report, saying that management still is negotiating with Toyota to build a Japanese
car in this country. In either case, the rumor essentially confirms our view that
GM will rely on Japanese cars to replace the domestically produced Chevette.
With powertrain components coming from Japan, GM will be able to market high
quality subcompact cars at a lower cost than Ford or Chrysler, unless those
companies negotiate similar arrangements with Japanese producers. This is likely
to result in reduced employment in the domestic industry, as domestic production
of small cars shifts more toward Japanese vehicles. However, the employment
prospects would be even worse if the U.S. companies were to abandon the entire
small car market to Japanese imports.
Plant Closings
Further evidence of weak U.S. competitiveness in the small car market was
provided by Ford's announcement that the company will close a California
subcompact car plant by June 1983. - The San Jose Plant assembles Ford Escorts and
EXPs, as well as the equivalent Mercury models and some light trucks. Shutdown
of the plant will eliminate 2,400 jobs.
Ford's stated rationale for closing the plant is that, with imports having captured
half the California new car market, sales of the San Jose cars were sufficient to
support only 40 percent of the plant's capacity. The large influx of imports into
the California market and the high cost of shipping cars over the Rockies have
resulted in four assembly plant closings in the state since 1980. Ford and GM each
have announced the shutdown of two assembly plants in California. After June
1983, only one assembly plant will remain in the state, the GM Van Nuys plant
building Camaros and Firebirds. This plant also is threatened; GM recently
eliminated one shift at the plant, idling 2,250 workers.
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In ,addition to demonstrating the problem U.S. companies are having competing in
the small car market, the San Jose closing also illustrates the possible industry
contraction into the Midwest. As manufacturers try to reduce excess capacity and
cult shipment and inventory costs, the plants farthest from the Midwest are the
most vulnerable. Reducing inventory costs by scheduling frequent shipments from
suppliers is easier to accomplish if a manufacturer is close to its suppliers. Since
late 1979, the auto companies have closed enough plants to eliminate almost 1.9
million units of capacity. Eight of the 10 plants closed were located far from the
Midwest. This trend is quite likely to continue in the near future. Even if capacity
utilization improves from less than 55 percent in 1982 to 70 percent in 1983, the
industry still will be faced with more capacity than it needs. The end result may
be that the industry becomes concentrated in the Midwest states, as it was earlier.
New UAW Leadership
The UAW's international executive board has nominated Owen Bieber, head of the
Union's GM department, to succeed Douglas Fraser, who retires next May. Bieber,
52, is expected to be confirmed at the union's May convention. No change is
anticipated in the Union's philosophy or relations with industry management.
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PROFIT SOURCES FOR NINE-MONTH 1982 EARNINGS
(millions of dollars)
GM
FORD
CHRYSLER
AMC
TOTAL
"Operating" Incomel
$(144)
$(408)
$ 10
$(151)
$(693)
Gains from Currency
Translation
313
20
NA
NA
333
Equity in Net Income
of Unconsolidated
Subsidiaries
477
211
(1)
NA
687
As. et Sales
56
172
NA
228
Other Income2
(4)
10
NA
6
Pre-Tax Earnings
$ 646
$(125)
$ 191
$(151) -
- $ -561
Income Taxes
(Credits)
(172)
297
(75)
Nei: Income
$ 818
$(422)
$(266)
$(151)
$ 511
1. "Operating Income is sales revenue minus: cost of goods sold; selling, general,
and administrative expenses; depreciation; amortization; and net interest expense.
Income from currency translation, asset sales, and other specifically identified
sources is broken out from operating income.
2. Includes tax credit sales and other miscellaneous sources of income.
Source: Commerce estimates based on quarterly reports.
Approved For Release 2007/08/04: CIA-RDP84TO0109R000100070002-2
 Approved For Release 2007/08/04: CIA-RDP84TO0109R000100070002-2
? ?
GM, FORD, CHRYSLER, AND AMC
MAJOR SOURCES AND USES OF FUNDS FROM OPERATIONS*
(billions of dollars)
1981 Quarters
1982 Quarters
I - III
TOTAL
I - III
TOTAL (e)
Sources of Funds
Net: Income (Loss)
$0.0)
$0.3)
$ 0.5
$ 0.7
Depreciation and
Amortization
5.3
7.1
5.5
7.3
Total from
Operations
4.3
5.7
6.0
8.0
Uses of Funds
Dividends
$ 0.7
$ 0.9
$ 0.6
$ 0.7
Plant and Tooling
9.3
12.5
7.1
9.7
Investment in
Unconsolidated
Subsidiaries
0.5
0.5
0.5
0.7
Retirement of
Long-Term Debt
0.5
0.6
1.4
1.5
Total Uses
$10.9
$14.6
9.6
$12.7
Sur lus (Deficit)
from Operations
$(6.6)
$(8.8)
$(3.5)
$(4.7)
* Long-term debt retirements for 1981 do not include Chrysler's conversion of long-
term debt to preferred stock. 1982 Total is our current estimate. Numbers may
not add due to rounding.
Sources: Annual and quarterly reports and Commerce estimates.
Approved For Release 2007/08/04: CIA-RDP84TO0109R000100070002-2