Daily Kennebec journal., 1916-09-30

The Automobile
The automobile is the highest type of NOV
ing vehicle. either drawn or self-propelled. Il
is highly developed machine, containing
three thousand separate parts-,nore MOVING
or trictional parts than railroad locomotive.
lhe locomotive runs over smooth track: the
automobile is driven over rough roads with
sharp turns and grades: it is subject to far
more wear and tear than the locomotive Oh
viously. 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
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 Automobiles?
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 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 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
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 a par for these parts, but these parts consti-
tute less than 20% of the cost of an automobile.
Other parts constitute about 8O% Of the cost OF
the automobile, the engine, axles. transmission.
diferental, steering gear, body and top making
up most of the 8O%. Hence, manufacturer
who manufactures these parts from raw ma
terials in his own plants roughly speaking is
making 8O% of his car. whereas the assembler
who buys them from parts manufacturers is
purchasing from middlemen practically 1909
of his car.
Studebaker manufactures in its own plants
all of its engines, axles, transmissions diGeren-
tial., 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
20s or $40 for the parts both manufacturer
and assembler buy from middlemen, the bal
ance. 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 $l4O to the