Evening journal., 1916-09-30
The Automobile

The automobile is the highest type of NOV
ing vehicle. either drawn or self-propelled. 1t
is a highly developed machine, containing
three thousand separate parts-more moving
or frictionAl parts than railroad locomotive.
The locomotive runs over a smooth track; the
automobile is driven over rough roads with
sharp turns and grades; 1t is subject to far
more wear and tear than the locomotive. OBJ
viously, it must then be necessary that each
one Of the three thousand automobile parts,
both moving and stationary, 6t cooperate and
function with the greatest possible precision.
The quality of the automobile depends entirely
on the quality of the raw material, and the skill
and experience with which it is designed and
manufactured. The locomotive at all times is
operated and cared for by experienced engi-
neers and skilled mechanics. Automobiles
are operated by owners who sometimes pos
sess only limited mechanical ability, therefore
an automobile must be designed and manufac-
tured to meet every emergency Of service and
to withstand the abuse and neglect of unskillful
operation.
Who Makes AUtomobiles7
There are over one hundred concerns max
ing" automobiles in this country, of which
about ten are manufacturers, while the others
are 'assemblers."
The manufacturer owns and operates a COM
plete manufacturing plant consisting of an ex-
tensive engineering and experimental depart
ment and chemical laboratory; a power
plant; foundry, forge shop, machine shop,
stamping plant, body shop. trim shop. paint
shop, and assembling departments.
The assembler either owns or rents a plant
consisting usually of bare building without
power plant and without machinery, but
equipped simply with assembling benches
forms and racks and stock rooms for the FIN
ished parts which he purchases from parts
manufacturers or middlemen. He makes
automobiles by putting these parts together IN
his assembling department.
Excessive Cost Of Assembled Automobiles
Practically all manufacturers as well as as
semblers buy finished parts from middlemen,
such as wheels, tires, electrical equipment and
some minor parts, and therefore the costs of
both the manufacturer and the assembler are
on par for these parts, but these parts consti-
tute less than 20Z of the cost Of an automobile.
Other parts constitute about 80% of the cost Of
the automobile, the engine, axles, transmission,
diferential. steering gear. body and top making
up most of the 60%. Hence, manufacturer
who manufactures these parts from raw ma
terials in his own plants roughly speaking is
making 60% of his car whereas the assembler
who buys them from parts manufacturers is
purchasing from middlemen practically 1905
of his car.
Studebaker manufactures in It's own plants
all of its engines, axes, transmissions, diferen-
tails, steering gears, bodies and tops. Even
some manufacturers buy bodies. axles and
steering gears from middlemen.
Cost of Manufacture
Assuming car costs 500, and deducting
20% or $l40 for the parts both manufacturer
and assembler buy from middlemen. the bal
snce. or $3.50, represents the value which the
manufacturer sells at only one profit, but
which the assembler must buy at the parts
makers profit; and the parts maker asks an
average profit on these parts at least 25% above
manufacturing costs. This adds 40 to the