New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-11-17
AUTO SELLING PROBLEMS
Huuh Chalmers Tells Makers
That Changes Are Needed.
OPPOSES LONG DISCOUNTS
Considers Announcement OF
New Models in Summer a
Detriment to Industry.

one of the most important papers read
before the members of the National Asso-
citation OF Automobile Manufacturers in
De,rolt last week was that by Hugh
chalmers, head Of the Chalmers Motor
company Mr.. Chalmers. one of the
strong men Of the industry. took as his
subject Some Selling Problems" In
which he discussed the relation OF the
manufacturer and dealer. production, sec
ond hand cars and the effect OF weather
an automobile sales
Mfr. Chalmers took a strong stand
against fictitious pricing OF cars and long
discounts. contending that they throw
an atmosphere of insincerity and barter
ing and s.ipshod methods over our whole
industry" Trading in used cars, he con-
tended, is necessary, but unless wisely
carried on means usually the making OF
two sales in order to make one profit.
mo end Of automobile dealers" he
said "have traded themselves out Of
business" Mr.. Chalmers suggested the
amendment of a commission which
might work out some plan Of co-opera-
ZION on the used car problem, giving good
results for all Taking up the subject of
seasonal selling Of motor cars, Mr. Chal-
mers said:
THE greatest obstacle to the sale OF
automobiles is a natural obstacle. and
one which va can never entirely over
come. This greatest obstacle is bad
weather. The weather makes ours a Sea-
sonal business, and any business that
Is seasonal has selling problems which
f, an all-the-year-arou business doesn't
have We cannot change the weather,
that IS plain. But we can take measures
which will minimize the effect OF fall
and winter weather on our business,
The first thing l believe we should do
is TO change our own seasons.
81 am one of those who believe In
yearly models. This question will be de-
hated here and / am not going into II
NOW any further than TO say that In my
opinion yearly models are still desirable
But l. am coming to believe that we have
nicRed out the wrong time Of the year
20 announce our yearly models. II you
will look over your business for num-
Der of years and take your sales from
January to January, you will find that
the curve Of sales is a camel-backed anair
with one end in January and the other
+. in December, with a rise from January
10 an apex IN May or June; then vio-
lent slump for thirty or sixty days, with
"a steady rising through the late Summer
and fall TO an apex in October; AID after
that another falling away to the mean
level Of December and January. / be-
lleye that this will always De true as
-along as we announce new models In
= The summer.
~ "our production plars are wrong. Look
at your curve OF production. You Will
2 fRd it also has two humps-one In the
spring and one in the late summer ana
early fall II is at its lowest point In
midsummer, when ii should be highest
because We end our season then and start
on new models. which always come SLOW
" at first. In other words, we get our
maximum production in the poorest sell
Ing season and our minimum production
when sales should be highest. When the
weather Is most favorable TO big sales we
are engrossed with the new models.
"These conditions are not right II is
to our interests and certainly to the In
terests OF our dealers to make our Dig
gest deliveries In tho heaviest selling sea-
son. l think II IS time for US to consider
very seriously whether we ought not to
announce our model just before January
J, rather than in July. One company
alone would hardly dare change the Gus
tom, or even two or three companies, for
that matter
This Is a thing which. IL 1t is 70 the In
terest Of all, should be done by all to-
gether. all Of US agreeing. say year In
advance, that we are, after certain date,
going to make our announcements not
earlier say, than the December !. rather
than in July l think that II the change
is made an agreement should be reached
that the new models be announced not
earlier than December L or possibly De-
cenber Is Announcements prior to that
time would, / believe, tend TO stop busl-
ness too early in the fall. Our business
year is. you might say, really ten
months year. when you get down 10 IL
We, all Of US, aim 10 have gap between
seasons, and il seems to me 1t would DO
much better to have this gap come IN
midwinter, rather than in midsummer"