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Topics:  Edsel

17 April 1956

Mr. R. E. Krafve

Each day seems to add considerably more weight to the reasons why we must seriously consider the delaying of production start-up on the E car from the April-June dates to dates somewhat closer to the introduction dates for the rest of the cars in the Fall.

It is important that we minimize to the fullest extent any losses that will occur because of this delay, by reducing advance expenditures. As I understand it, July, 1956 was to be the kick-off date for expanding your organization as originally planned. Any costs that were planned to occur in anticipation of this date should be re-examined completely.

I expect we will have a chance to discuss this in more detail when we are on the road, but the purpose of this note is again to point out the absolute necessity for preparing yourself and your expense structure for the real possibility of a change in the introduction date of the E car.

L. D. Crusoe

cc: Mr. Moriarty

Executive Vice President, Car and Truck Divisions