UNITED STATES TARIFF COMMISSION Washington, D.C.

LAPTA-W-12/

TC Publication 209 June 8, 1967

TARIFF COMMISSION SUBMITS REPORT TO THE AUTOMOTIVE AGREEMENT ADJUSTMENT ASSISTANCE BOARD

IN ADJUSTMENT ASSISTANCE CASE PERTAINING TO CERTAIN WORKERS OF GENERAL MOTORS CORPORATION'S CHEVROLET PLANT AT NORTH TARRYTOWN, NEW YORK

The Tariff Commission today reported. to the Automotive Agreement

Adjustment Assistance Board the results of its investigation No.

APTA-W-13, conducted. under section 302(e) of the Automotive Products

Trade Act of 1965. The Commission's report contains factual informa-

tion for use by the Boardl which determines the eligibility of the

workers concerned -to apply for adjustment assistance. The workers in

this case were employed. in the N. Tarrytown, N.Y., Chevrolet plant of

the General Motors Corporation.

Only certain sections of the Commission's report can be made

public since much of the information it contains was received. in con-

fidence. 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.

U.S. Tariff Commission, June 8, 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 an investigation (UTA-W-13) concerning the possible

dislocation of certain workers engaged in the assembly of automobiles

and. trucks at the General Motors Corp.'s Chevrolet assembly plant in

North Tarrytown, New York. The Commission instituted. the investigation

on April 20, 1967, in response to a request for investigation received.

on April 19, 1967, 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. 6459) on

April 26, 1967.

The Automotive Assistance Committee's request for the investiga-

tion resulted from a petition for determination of eligibility to apply

for adjustment assistance that was filed with the Assistance Board on

April 14, 1967, by the International Union, United. Automobile, Aero-

space & Agricultural Implement Workers of America (U.A.W.) and. its

Local No. 664 on behalf of a group of workers at the N. Tarrytown

plant of the Chevrolet Division of General Motors Corp. (hereafter

referred to as GMC). Neither the petitioners nor any other party re-

quested. a hearing before the Commission, and. none was held,

The petitioners alleged that the cutback in production at the

N. Tarrytown plant on February 13,.1967, was due to the importation

of automobiles from Canada of the type assembled at N. Tarrytown.

The petitioners further alleged that the layoffs which occurred. as a

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result of the cutback in production were attributable to the Automotive

Products Trade Act of 1965.

The Commission conducted investigation ABTA-W-13 concurrently with

investigations APTA-W-12 and 14 relating to the possible dislocation of

certain workers engaged. in the production of automobiles at General

Motors Assembly Division's Wilmington, Del., plant and in the produc-

tiOn of automobile bodies at General Motors Fisher Body Division's

plant at North Tarrytown, New York. Much of the information developed

in connection with APTA-W-12 and 14 is also pertinent to APTA-W-13;

because of signifiCant differences in the circumstances involved in the

three investigations, however, separate reports have been prepared.

The information reported. herein was obtained from a variety of

sources, including the General Motors Corp., the other major U.S. auto-

mobile manufacturers, the International Union, U.A.W., and. its Local

664, the Commission's files and. through fieldwork by members of the

Commission's staff.

The automotive product involved--automobiles and. trucks weighing 2000. pounds or less, gross vehicular weight (GVW)

Conventional passenger automobiles and trucks weighing 20,000

pounds or less, GVW, are the articles under consideration in this in-

vestigation. Automobile components that are shipped in K-D (knocked.-

down) kits for subsequent assembly are not included, within the scope .

of this investigation; special purpose motor vehicles such as the

"Jeep" and "Scout," are treated. as trucks.

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Importedautomobiles are dutiable under item 692.10 of the Tariff

Schedules of the'United. States (TSUS) at the rate of 6.5 percent ad.

valorem; if imported. from Canada, however, they are duty-free under

item 692.11. Imported automobile trucks are dutiable under TSUS item

692.05 at the rate of 8.5 percent ad valorem; if imported. from Canada,

however, they are duty-free under item 692.06.

GMC and its automotive divisions

GMC, with headquarters in Detroit, Mich., is the largest manufac-

turing corporation in the world. Its net sales in 1966 were valued. at

about $20 billion; approximately 90 percent of this total was accounted

for by the sale of automotive products. GMC is comprised. of numerous

divisions and foreign and domestic subsidiaries. The divisions, which

are organized. along product lines, produce cars, trucks, vehicle bodies,

automotive components, engines, household appliances, and other products.

United. States and Canadian roduction and trade-- all automobiles' 1/

Total U.S. production of automobiles in model years 1963-66 in-

creased from 7.2 million units in 1963 to 8.8 million units in 1965,

then declined. to 8.6 million units in 1966. During the same period

Canadian production increased. annually from 467,449 units in 1963 to

672 0 901 units in 1966 (table 1).

1 Data are based on the operations of the four principal U.S. pro-ducers of automobiles.

U.S. production of automobiles totaled 2.9 million units in the

period January-April, 1964, and 2.5 million units in the corresponding

period. of 1967. Canadian production in the same periods totaled.

227,739 and. 228,025 units, respectively.

During model years 1963-66, exports to Canada of U.S. produced

automobiles increased. annually from 6,569 units in 1963 to 59,207 units

in 1966. There were no U.S. imports of automobiles from Canada during

the 1963-64 model years. Imports from Canada began with 1,610 units

in 1965 and. increased. to 94,381 units in 1966.

U.S. exports to Canada of automobiles totaled. 3,459 units in the

period January-April 1964, and 75,592 units in the corresponding period

of 1967. U.S. imports from Canada amounted. to 100,346 units in

January-April, 1967.

luring model year 1966, the United. States became a net importer

of cars from Canada, importing a net 35,174 units. In the first - 9

months of the 1967 model year, the U.S. net import position with Canada

was 21,599 units, compared with 22,504 units in the corresponding

period of 1966.

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