South Bend news-times. (South Bend, Ind.) 1913-1938, 1917-01-21
FOREIGN MARKET
FOR MOTOR CARS
Dr.. Pratt Sees Opportunities
Abroad for American Auto
mobile Manufacturers.

1T is remarkable that the sales
men in charge of the great automo-
bile industry have not realized more
fully the possibilities OF developing
an export market for American
cars, declared DR.. Edward Ewing
Pratt. chief of the bureau Of for
eign and domestic commerce, in an
address before the automobile ex-
port managers of the National Au-
( tOmobile chamber OF commerce in
New York.
! There are some very good rea-
sons why automobile manufacturers
| should be interested in foreign
/ trade Or. Pratt urged The first,
and perhaps the most important
reason is that the foreign market in
itself is a very large market. In the
! last normal year before the out
break Of the war. France exported
a little over $45.OOO.OOO worth of
automobiles; Germany exported
about $4,000. 600 worth of auto
mobiles; Great Britain about 49,
100000 worth: and Italy about So
600, 600 worth Of automobiles. In
} the same year, 1913, we exported
$4,000. 600 worth
In the second place, automobile
manufacturers should be interested
| in building up an export trade be-
cause the consumption Of automO-
/ biles IN the United States may be
reaching the saturation point in this
/ country. This market can and will
undoubtedly consume vastly larger
volume of cars, hut If the production
continues to increase at the present
rate. and unless very vital changes
/ can be effected either in the con-
Stunning public or in the price Of the
/ product, the increase in the con-
sumption of automobiles cannot in
definitely go on. This point OF sat
uration may be a year off-may be
/ two years-may be 10 years off. But,
! if such a point is a possibility the
manufacturer must clearly realize
that il he has established a firm ex-
! port business that he will not be as
much affected and will be able to
more easily increase his business
i than the manufactures who has en-
/ tirely neglected the export trade
/ OF course, ] recognize that the man
! facturers Of pleasure cars and COM
/ mercial vehicles are differently at
/ fected by these conditions, and that
/ while the pleasure car may have
more or less completely supplied the
market. the commercial vehicle has
probably only begun it's develop
ment
Will Stabilize Business.
"In the third place" continued
| DR. Pratt. export trade will tend 10
stabilize business conditions in the
! United States. In many lines Of in
dustry. the prosperity of the bust
ness is dependent upon factors en-
tirely outside its control. A short
crop or a bumper crop may en-
| tirely determine the output of an
( industry. This is, 10 a certain eX-
/ tent, true of the automobile indus
! try. If, however, the manufacturer
/ has a business which covers the en-
! tire world a poor crop or bad bust
| ness conditions in one country will
1 be Offset by good conditions and
I prosperous times in another country
I'm the fourth place. a we'll devel-
oped export trade will, TO some eX-
tent, do away with seasons in tie
manufacturing end Of business. This
1 is an obvious fact that is we'll known
10 manufacturers who have been
doing business in both the northern
I and southern hemispheres.
And finally. there is in the ex-
ort trade, and those automobile
manufacturers who have gone in
or il have not been slow TO utilize
this advantage certain advertis-
ing value in this country. There is
no question but that there is a con-
siderable advertising value in the
mere statement that a car has won
the respect of foreign purchasers"
The speaker stated that there was
no difficulty IN meeting foreign
cerned Standardization and enor-
nous output have made il possible
to turn out lower priced cars than
any other country. IL is only on
cars ranging up from $1,000 that
European competition is felt. II
European manufacturers undertake
competition in the cheaper cars
when the war is over they will have
TO resort TO American methods. and
/ in that case our manufacturers will
have a considerable advantage in
time.