Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-10-17
AUTO |NDUSTR|ES
RUNNING PARALLEL
European Makers Discourage
ed Over Cut in Prices of
US. Products.

The course of the automotive in.
dustry is running a remarkable par
allol in the United States. England
tries in current issue.
General industrial conditions in al
three countries are almost identica
and the process of readjustmen'
which is now under way in America
has brought the same depression here
and in France. Its ramitCations are
worldwide and they show that al
rations are striving to return to a
normal basis after the imitation re-
sulting from the war.
while in their broad aspects con-
cltions here are the same as those in
the United States. this country is in
a more serious plight because labor is
intrenched to a greater degree and as a
consequence manufacturers are more
at it's mercy. England probably is
nearer to a revolution today than the
United States ever will be. "Revo1u
ton in the sense in which it is used
here does not mean communism, but a
la Dor government. The British never
Will accept bolshevism and the labor
leaders of England are men OF broad
vision.
Makers Are Discouraged.
Automobile manufacturers both in
England and France are thoroughly
discouraged. 1t was difficult for them
TO get from a war to a peace basis
and they never really have gotten into
their stride, as it were. Now they are
confronted with the DOGGY of lower
prices for American cars. which they
fear will necessitate a still further
curtailment of production.
Sales resistance here and in
Z. rly Ill
is the result of the determination of
the public not to buy anything except
absolute essentials until prices come
down. The orgy of extravaganza
which followed the war ended some
months ago.
Motor car sales here virtually
ceased and even Fords. the last to be
effected. have suddenly become al
most dead because of cables reporting
price reductions to pre-war levels in
the United States. Every one takes
1t that this means pre-War prices here
very quickly. The papers are carry
ing every day paragraphs about cuts
IN the prices of American passenger
cars and trucks.
The one hope of English manufac-
turers is that the Olympia show NAV
tend to stabilize conditions somewhat
II IS felt that prices should become
firm again at that time and that the
show Will give the public some lew
ideas. At present prospective buyers
expect to get cars at % to SO per
cent off present prices. Nothing like
the present conditions have been ex-
perienced in the history of the indus.
try in England.
Money Situation Similar.
The money situation here is SIM
liar to that in the United States
There really is n immense amount OF
ready cash in the country. but the
people won't spenu it. Partly because
OF labor troubles persons with a few
hundred or few thousand pounds are
smut down on loans to manufacturers
This is partly in the hope of killing
the excess profits duty, but partly
with the deliberate intention of weed
ing out weak firms and leaving room
for stronger ones. Another factor gov
erning the banks stand is that they
are not inclined to let money out
while there is talk of general strikes
and revolutions.
English automobile manufacturers
have not yet taken any action to pre-
vent the importation of low priO d
American cars and there are no in
dicationS yet that they will follow the
example of their French brethren.
The industry in Italy has not begun
to recover from the effects of the
revolutionary strike and it is difficult
to forecast when it will Swiss man
ufacturers are beginning to complain
about the importation of cheap Amer
lean cars and are threatening to call
upon the government to protect them"