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Kaiser-frazer Plant in Israel Suspends Operations for Two Weeks

The Kaiser-Frazer plant at Haifa laid off 400 workers today and suspended operations for two weeks because of a lack of parts. The steelworkers strike in the United States was a factor in the shutdown.

Two reasons were given for the suspension. One was the decision of Regie Renault, the French auto firm, to cancel its contract for assembly of Renault small cars under Arab boycott pressure. The other was a delay in shipment of Willys Overland parts from the United States caused by the walkout. Plant officials said that when operations were resumed with arrival of the American-made parts, the plant will operate on a much smaller scale than previously because no replacement has yet been found for the Renault assemblies.

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