Los Angeles herald., 1910-10-23
LOCAL MAN, l. J. 0LLIER'
TALKS PRICE REDUCTION
Reasons Why EMF and FIan-
ders Cars Are Cheaper

L. J. Ollier. local manager of the
wholesale branch of the EMF compa-
n.y. when interviewed in regard to the
sensational announcement Of reduction
in price made by the EMF company
of Detroit, Mich, on its two models of
cars-the Flanders twenty and the E.
ME- thirty--had the following TO say:
THE changes which are now taking
place in the automobile industry are
very similar to those which took PLACE
in the bicycle industry several years
ago.
For some time almost every user of
an automobile has asked: When will
cars be reduced in price7 They GER
tainly are too high at the present time.
The reductions that are now taking
place are sensational-that is, they are
sensational at first glance, as, for in
stance, a reduction of 90 per cent in the
present EMF car leads one to think
that it would remove all profit unless
the profit that has been made hereto
fore has been entirely too large. This,
however, is not the case.
1.-THE reduction in price at the pres
ent time is entirely brought about by
a drop in the price of materials. and
increased manufacturing facilities.
There is no company in the United
States so well fitted to take advantage
of the drop in price of material, nor
take advantage of the advanced manu-
featuring methods, as the EMF COM
pany.
1.-The EMF company manufactures
its cars from the foundation up. 1t has
its own forging plant; its own found
ries; it's own stamping plant; its own
brass plant and its own body plant. In
fact, there is practically nothing about
&c fo pf1
EMF company, and with the i'm
proved system of manufacture that has
been installed within the last year, to-
gether with the reduction in the cost of
material, the EMF company will now
make as much money on the EMF
car at $1,000 as it had been making when
the car sold at $3.50, A great proper
ton of the saving in manufacture to
the EMF company has come about by
it now being able to manufacture ev-
erything in connection with the ma
chine, whereas a year ago a great many
parts were purchased of other manu-
facturers. It is a well known fact in
automobile industry that almost all OF
the manufacturers of accessory goods,
or parts, have been selling their prod
ucts for more money than they really
asked-that manufacturers, year ago,
were bidding against one another in
buying materials; that the manufac-
turers of these parts were getting as
high as 90 per cent more than the mar
ket value simply because several auto
mobile manufacturers wanted their
product and because they were able to
pay this price and get the price from
the consumer. This condition has
changed, and one of the reasons it has
changed has been on account of the
tactics of the EMF company in in
stalling its own plants for the manu-
facture of all parts of the machine it
sells.
There is no concern in the United
States today which can manufacture a
car as cheaply, and the EMF compa-
ny realizes that the time has now ar
rived when there must be revolution
in automobile prices, and revolution
in the mode OF manufacture. Quality
production is the secret of the whole
proposition.
Another reason for our company's
ability to reduce the price to such an
extent is the fact that it has rcfrained
from putting out radically different
models every wear. Changes are made,
and additions are made, but they are
made gradually, and the car as it is
built today is, to a great extent, the
same car that was built two years ago.
It is better, Of course, there have been
additions made, and changes made
where actual service showed weakness,
but outside of this the car has re-
manned unchanged.
1--WE have all wondered when we
would get a good high grade car for
$1,000, and now we have it.
1.-The Studebaker company of Cali
fornia through it's houses here, in San
Francisco, Oakland, Sacramento and
Stockton, now has contracts for over
2200 cars for delivery the coming year.
Although the announcement of this re-
duction in price was only made this
last week, it has resulted already in the
increasing of specifications from 2200 to
24OO cars, and l predict that it will
mean the sale in California by this
company this present year of not fewer
than $500 cars produced by the EMF
company"