Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1916-10-08
THE AUTOMOBILE

The automobile is the highest type OF moving
vehicle, either drawn or sef-propelled. 1t is
highly developed machine, containing three thou
sand separate parts-more moving or trlctlonal
parts than railroad locomotive. The locomotive
runs over smooth track; the automobile is driven
over rough roads with sharp turns and grades; it
is subject to far and tear than the loco
motive. Obviously, it must then be necessary that
each one of the three thousand automobile parts,
both moving and stationary, fit, cooperate and
function with the greatest possible precision. Inc
quality of the automobile depends entirely on the
quality of the raw material and the skill and ex'
perience with which it is designed and manufac-
tured The locomotive at all times is operated and
cared for by experienced engineers and skilled me.
chancs Automobiles are operated by owners who
somtmes posses only limited mechanical ability,
therefore an automobile must be designed and man.
ufactured to meet every emergency of service and
to withstand the abuse and neglect Of unskilltul
operation.
WHO MAKES AUTOMOBILES?
There are over one hundred concerns "making"
automobiles in this country, of which about ten are
manufacturers, while the others are ''assemblers.
The manufacturer owns and operates complete
manufacturing plant consisting OF an extensive en-
}5gineerng and experimental department and a e.
chemical laboratory; power plant foundry, forge
shop, machine shop stamping plant, body shop, trim
shop, paint shop, and assembling departments
4. The assenbler either owns or rents plant con.
sisting ususally of bare building without power
plant and without machinery, but equipped simply
with assembling benches, forms and racks and stock
rooms for the finished parts which he purchases
from parts manufacturers or middlemen. He
makes" automobiles by putting these parts,to
=.gether in his assembling department *' -7> <:'ss
. EXCESSIVE COST OF ASSEMBLED
AUTOMOBILES , 4
= Practically all manufacturers as. we'll assem-
5blers buy finished parts from middlemen, such as
wheels, tires, electrical equipment and some minor
parts and therefore the costs of both the manufac
turer and the assember par Tor these parts,
but these parts constitute less than 20 per cent of
the cost Of an automobile. Other parts constitute
about 80 per cent of the cost Of the automobile, the
engine axles, transmission, dferential steering
gear, body and top making up most of the ~ per
cent Hence, manufacturer who manufactures
these parts from materials in his own plants
roughly speaking is making 80 per cent of his car,
whereas the assembler who buys them from parts
manufacturers is purchasing from middlemen prac-
tically 100 per cent. Of his car -
Studebaker manufactures in its own plants all Of
its engnes axles Transmission, di6erential, steering
gears, bodies and tops. Even some manufacturers
buy bodies, axes and steering gears from middle
men. r..
COST or MANUFACTURE
Assuming costs $500, and deducting 20 per
! cent. $40 for the parts both manufacturer and
: assembler buy from middlemen, the balance, or
$780, 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 average profit these parts at least
Is per cent. above manufacturing costs. This adds
$40 to the cost of the $3.50 worth of parts which