Rearming for the Korean war: The impact of government policy on Leyland motors and the British car industry

Abstract

In 1950 following the outbreak of hostilities in Korea the Attlee government began a large‐scale programme of rearmament. Although there are few in‐depth studies of the economic effects of rearmament in the 1950s, the received wisdom is that the British government's decision to rearm ended hopes of a sustained export‐led recovery in the immediate post‐war period. This article challenges that interpretation. It takes as a case study the impact of rearmament on Leyland Motors and draws some wider conclusions concerning rearmament and the vehicle industry. The article suggests that with respect to vehicles the reasons for long‐term decline should be sought in the market structure and practices of the firms themselves in addition to looking at the effects of government policy, which in the case of military production for Korea helped some sections of the industry to prepare for the expansion which took place in the 1960s.