The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1915-08-01
ford PRICES REDUCED
FURTHER BY COMPANY
However. 1t Cannot Promise Profit.
sharing Idea Can Be Kept
Up This Fall.

The Ford Motor Company make an i'm
ton in the price of their car. coupled
with the statement that while they guar
antee against any further reduction with
in year. they cannot give assurance
that the price may not be advanced at
any time. This is in harmony with the
aggressive and yet careful policy of the
Ford company. whose desire and earnest
efforts are continually devoted to annual
price reductions consistent with the
maintenance of their established high
standard OF quality and efficiency and
after service"
To maintain this policy when the an
nual output of cars runs into the hun
dreds of thousands. the most dependable
information and reliable facts are abso-
lutely necessary TO guide the company
In the efforts in controlling the costs in
production. and it is but natural that a
period must be reached when the cost OF
production will have reached its lowest
limit. Therefore, the question of mate
rails and the conditions governing man.
ufacturing must be well in hand to safe
guard the stability of the company's
business
Last year fiat reduction of $50 in
price was given and further inducement
made that. contingent upon the company
selling 10000 new Ford cars at retail
during the twelve months. they would
profit share with the purchasers of such
cars to the extent of from so to $50 on
each car. The company has sold over
100000 new cars within the time specified.
and beginning August Is profit sharing
checks of $50 each will be mailed to the
10000 and more buyers of Ford cars dur
ing the year ended July 81, 1915.
This profit sharing with retail purchas-
ers was not intended by the company to
be understood as having anything to do
with price reduction, but was given as
an evidence of good will and appreciation
Of the assistance such owners would give
the company in helping it to sell the 3Oo.-
600 cars. This sharing of profits with re-
tail purchasers should be further under
stood as being a part of the unit profit.
and having nothing whatever to do with
the accumulated profits of the Ford COM
pany's business: in other words. the
company voluntarily shared the profit on
the individual car. because the buyer of
such car was expected TO give assistance
In helping the Ford Motor Company
achieve an exceedingly large number OF
sales. lie had no rlgnt. nor mas any buy-
err of a Ford car any right to a share in
the accumulated profits of the company.
These accumulated profits are reserved
and used by the company for the extern
sion of its business. for the further en-
largement Of its powers in the production
of still greater volumes annually and as
a reserve against possible future con-
tingencies.
The $50 profit sharing check will be
mailed in August to 500, 900 and more buy
ers of Ford cars during the past year.
and is not in the nature of a bonus or
price reduction but is reciprocal evidence
of good will.
In the present announcement the Ford
company makes the following very frank
statement: Our plan to profit share
with retail purchasers of Ford cars dur
ing 1914-15 has been most successful. We
thoroughly believe in 1t, but realizing
the uncertainty of conditions generally
makes it advisable to defer any an
of future profit sharing until
a later date. We are. however, confident
of our inability to reduce the costs for
several months and, therefore. can Of
fer no profit sharing for cars delivered
during August, September and October,
1915.