ABSTRACT
Between 1945 and 1953 a number of government policies exerted a considerable influence, sometimes as intended, sometimes not, on the UK motor industry. The intent of the export quotas was to redirect output to overseas markets, first to help the balance of payments and later to help rearmament. To the extent that far more cars were exported after the war than before, that considerable foreign earnings resulted, and that rearmament requirements were fulfilled, the government's export policy must be deemed successful. Nevertheless, the costs involved were considerable and largely unanticipated. The intent of the distribution policy was to achieve a fair distribution of scarce cars and petrol at home. Together the export quotas and distribution policy had unintended harmful effects on the industry and economy. A necessary rationalisation of the industry was frustrated. Car designs 59were modified, mistakenly if intentionally, so that they proved, unintentionally, inappropriate for overseas market conditions. Perhaps most importantly the export quotas and distribution policy created, unintentionally, an illusion of enormous pent-up demand at home. This acted as a disincentive to the development of overseas markets by the manufacturers. Inadequate road expenditures and a flat rate system of taxation also pressured the British manufacturers to produce designs inappropriate for many overseas markets. Together export quotas and rearmament policy thwarted the intentions of favourable monopolies regulations to stimulate much rationalisation of the British motor industry. In addition, constant problems were created by a labour relations system, set up largely as a result of government wartime legislation, which was incapable of handling the problems of a complex modern industry. Consequently, whatever the weaknesses of British labour and management during this period, government policies between 1945 and 1953 created an environment which in many situations could only frustrate the better intentions of both labour and management.
