New-York tribune., 1918-04-21
Foresees Motor Car
Market Will Be
Long Oversold

"For the past twelve months the cf
have been concentrated on winning the
war. - Production of automobiles
even automobile trucks-for ordinary
commercial and domestic purposes has
ceased to be the paramount concern
of automobile manufacturers; for the
makers of motor cars have been too
busy converting to government uses
the energy, the ingenuity, the re-
sourcefulness and the efficiency which
in the past two decades have enabled
the automobile industry to- revolution
ize manufacturing methods and to de-
velop quantity production to a point
never before dreamed Of" says James
j. Hunt, vice-president and general
manager of the REQ Motor Car Com
.pany of New York, Inc.
"This conversion of energy has taken
many and divergent forms. Not all Of
the automobile factories are actually
producing munitions Of war, although
the production of trucks for military
service, of airplane engines, of anti
submarine craft, of artillery tractors
ana a thousand and one other things
which the United States and her al
lies need most urgently for direct use
in winning the war is engaging a sur
prisingly large part of the productive e
capacity of many Of the biggest auto
mobile factories in the country.
If we may judge the future by the
past and the present, the automobile
business still is in a period of COM
parative infancy. If figures mean
anything at all, they indicate unmis-
takably that the point of saturation
whatever that may mean--has not
been reached. The curve of production
to the end of 1917 is still upward,
and while there is certain to be {.
marked recession in 1918 it will be due
not to falling off of demand-which
! of course, would be the case if the
maximum absorptive power of the
country had been reached--but to the
necessity Of releasing for government
uses part of the materials, men and
( plant capacity which normally would
have been utilized for he manufacture
of automobiles.
i ut IS significant that even in 1917
! production exceeded that of 1916 bv
approximately 20 per cent; and it IS
still more significant that right now
{ used cars OF all makes and classes arc
selling briskly at prices representing
an advance Of from 40 to 60 pcr cent
over what the same cars were selling
for year ago. 1t is doubtful if there
ever was time in the history of the
automobile business when there was
as lively market for used cars
as at the present time, and when we
consider this statement in the light
OF the admitted fact that the suppl,
of automobiles has never equalled the
demand, it is apparent not only that
neither the buying power nor the buy.
ing inclination of the public has di
minished, but that it has actually in.
creased. ''''
1T is at least doubtful whether nro.
ductaon will again get back to norma
before the end of the war. If it does
not, we may look forward with the Mt
most confidence to an ovcrsold market
Tor the remainder Of the conflict. Thf
great middle class-includinr farmer. -.
and skilled workmen, who mako ~
the bulk of the buyers of medium
priced automobiles-are flush VIII
money. It's natural that thew shouIl ll
De spending part Of it for conven
fences which they have never befor,
been able to afford, and that's exactl,
"haI they are doing"