The Belding banner-news. (Belding, Mich.) 1918-1973, 1920-08-25
PREDICTS STEADY
EXPANSION Of
MOTOR INDUSTRY


| garding the probable saturation point
| in automobile production. From the
| time the first "devil wagon" appeared
! on the streets with it's hideous clam
our until the present day prognosti-
Gators have been busy figuring what
| the largest number would be that the
market could absorb.
| Predictions were made freely, but
| they were seldom II ever right. The
young giant industry expanded with
such unbelievable repidity that A.
nally none but the most fool-hardy
continued to forecast when its
growth would cease. The prognosti-
Gator Of the old days has thrown up
his hands in despair and been forced
to admit that he was shooting wide
Of the mark.
Twenty years ago, when the in
dustry was in it's infancy, the ulti-
mate market was placed at 100000
cars, but only the most enthusiastic
automobile tcranks" believed that
such a large number would ever be
in use. Ten years later the earlier
estimates were modified and it was
grudingly admitted that possibly the
market might absorb as many as L.
600 900 cars. Five years ago IL was
seen that even this "high" figure was
too low and the saturation point was
fixed at 100000. How conserva-
tive this estimate was is shown BY
the fact that official figures for 1919
show that 7,555,269 cars were in OPP
GRAFTON.
The whole truth Of the matter Is
that no one can predict with any
degree of accuracy how many cars
can be manufactured before the sat-
uration point is reached. Too many
factors pnter into the solution Of
the problem. The demand for auto
mobiles is no longer governed by the
number of persons who receive large
incomes, but rather from the earn
ings derived from their use. 1t,
therefore, follows that any estimate
regarding the ultimate market for
automobiles must be based upon the
number of uses to which they can be
economically put and as the num-
Der Of their uses is constantly in
creasing. it is evident that accurate
predictions are practically out OF
question.
Present indications are that the
demand for automobiles will not be
satisfied for many years to come. II
the entire nation had as many cars
in proportion to population as there
now are in Iowa, there would be
10 500, 900 cars on the roads today,
or nearly 100000 more than the
present number.
The country is now at the crest Of
q buying market so far as passenger
vehicles are concerned. Production
does not equal demand and it is like
ly that this condition will exist for
some time to come. The proposed
car production for 1920 is well to-
ward the 5000, 600 mark and an an
alysis Of the market. at home and
abroad. shows an ability to absorb
an even greater number. 1t Is safe
to say that by 1926 there will be at
trucks in service.
Every division Of the automobile
industry realizes the extent Of the
expansions it must make IL the fu-
ture demand for cars is to be sat
isfied. Automobile manufacturers OF
Detroit and elsewhere are rapidly
making preparations for doubling
their output, and manufacturers OF
automobile parts in Cleveland are
steadily increasing their production.
In Akron, the rubber center Of the
world. the tire manufacturers foresee
a practically unlimited field for ex-
pansion and are expanding their pro-
duction programs accordingly
With this general increase in the
sale of automobiles Bedding should
within a very short time be on the
map as one Of the large producers OF
motor cars and trucks.