Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1917-08-04
REQ CONTRACTS
SIGNED BY MAIL
Sales Manager Analyses Rea-
sons For Differences in
Motor Industry

Here's the situation in the auto
mobile business as I see It," said
r. C. Rueschaw. salesmanager of the
REQ Motor Car Company, when asked
| 10 give his Views on a subject about
which there has been so many con-
flicting views of late.
| Mr.. Rueschaw Is the oldest sales
manager in the industry of point of
service with one concern, having oc-
cupied that position with the REQ
Motor Car Company since it's incep-
| tion, and, as result. he is consid-
cred one of the best authorities in
| the industry on the conditions, past,
present and future. Rueschaw's anal
yses and conclusions are accepted at
pretty nearly par throughout the in
| dustry.
Those concerns that have a stand
ard product with an established repu-
tation enjoy, at this moment. not only
demand equal to their output, but
| an overdemand.
I'm our own case the overdemand
| Is more excessive than at any previ-
Gus time in our history. And that
applies not merely to one model but
to every model we make. both of
| automobiles and motortrucks.
",The same Is true of several other
concerns could mention, whose prod
uct, like REQ. is standard and whose
reputation extends back over the
years.
I'm the case of those concerns who
are newcomers in the field, or whose
present models cate back only year
or so. 1t is perhaps true that there
| Is slight slackening in demand.
This merely indicates, to my mind,
| that when conditions are uncertain
as they have been for the past few
months since We have declared war
people select with greater care than
at other times. They therefore buy
on reputation and past performance.
IF there is an apparent hesitation
in the automobile business, it is not,
as some financial journals have de-
duccd, due to fear on the part of
manufacturers that the demand may
slacken. but to precisely opposite
conditions; namely, fear that raw ma
terals may not be available.
"The manufacturer cannot plan TO
make. say. $4,000 cars, until he is GER
tain that the materials for making
every part of those cars will certainly
be available
Now, at the present time, this Is
not certain.
PERSONALLY, l do not think there
will be shortage of steel because l
don't think the Government can take
ell the steel CI the kind suitable for
automobile making that will be pro-
duced. There arc some other articles,
however, which for obvious reasons j
would not be justified in mentioning
of which the supply is most uncer-
tain at the best. That being the case,
established manufacturers who have
much at stake hesitate to plan for
q larger production in the coming
year than in the past
Then there Is that class of manu-
facturers or assemblers who started
on a 'shoesI1 ing" whose credit has
been a negligible factor and who finds
himself confronted with two condi-
tions, namely. to buy at the present
rates and make a product that will
compete with the more established
models ut the price; and. second, to
obtain the backing of his bankers to
buy under such conditions.
"Unquestionably some OF these will
peter out.
unlike former years, however,
nome of them, SO Ear as I can see. are
companies of any real Importance to
the Industry. and their passing will
not create even ripple on the sur
face.
THAT is the best thing about the
present condition as I see it, The
demand has been such that these
concerns have sold all they could
make and so have little or no stock
on hand. They will not. therefore, be
under the necessity of throwing a lot
of cars on the market at reduced
prices, and so their demise will be
painless and harmless so far as the
rest OF the industry is concerned.
Every year we in the automobile |
business pass through a weeding-out
process and occasionally one goes
under in such a way as to seriously |
upset matters for while. This is
invariably a concern to whose prod |
uct the public attaches more import |
ance than the industry attaches. On
that account the market has some
times been badly upset.
NOW, why any one wants to buy |
an automobile that has proven fail |
ure, even though the purchase can |
be made at half the price, is beyond |
me. can't imagine any one buying |
such a product at any price for the |
simple reason that it will be impos-
sible, in q short time, to obtain re-
placement parts. Also 1t is a rule in
the industry that financial failure is
due primarily to failure of the prod
uct to make good.
REQ occupies an enviable position !
at this time. The demand for our
product is so hopelessly in excess of
the supply that feel like taking a
trip to Japan to get away from the
grief. AS a matter of fact, / am TAX
ing a vacation just at a time when,
in previous seasons, 1 have had to
be at the desk signing up dealers
contracts.
This year we signed up ninetyNper
cent. of our dealers contracts by
mail; and our entire product has been
allotted weeks before August 1, which
is the usual time for beginning on the
work.
81 can see nothing to 1t but greater
next year. The only fly
in the ointment is the certainty that
we will be unable to make half as
mauy cars as Will be necessary to
supply the demand, especially when
other makers like ourselves hesi-
tate about emEarking on a big pro-
duction schedule with the present un=
certainty in the material market"