Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-11-14
HOW TRUCK MANUFACTURERS
VIEW PRESENT SITUATION
HY A. v. CoMINGS.

Present conditions In the motor
truck industry are far from satisfac-
tory, nevertheless the manufacturers
as rule are taking the present
slowing down philosophicany, are
trimming their production TO meet
conditions. and are clearing the deck $
for the resumption OF business which
they universally profess to believe
Will come with the fall and winter
months. Sales during the first half
OF 1920 were SO great with most
companies that. even with the pres
ent lull. they figure that this years
business is going away beyond the
record made in 1919.
jus; how much the present curtail-
men; amounts to is very hard TO
judge, for the lull has affected diff
fercnt manufacturers in different de-
ErceS. Some, who have been fighting
for months To get enough parts 10
carry ON balanced schedule of out
put, welcome the present lull as n
means whereby they can catch Up
on orders. Others. who have been
more nearly keeping up with sales
find IL necessary 20 cut production
accordingly. Judging from the in
formation at hand from many
sources. believe that there has been
q cut OF at least so per cent in the
total production of trucks.
Wedding Out the Undesirabies.
There has been no general layoR Of
men in the industry, although many
manufacturers are taking this peri od
TO weed out the undcsirables in their
organizations. And the truck man
ufacturers have found, as have en-
ployerS in other lines, that the pres
cnt situation is not without its bless
ings. for men. faced with the pos
sihility of layoff, are doing much
moro satisfactory work. In fact,
several manufacturers have found
that the men remaining on the Job
are about % per cent more efficient
than when there was 4 labor short
age.
The present lull has emphasized to
the mapufacturers the necessity If
strengthening what has always been
their weakest SPOT. that is, their
selling organizations. With the big
demand which marked 1919 and the
first half of 1920. almost any kind
Of dealer could pass trucks on from
the manufacturer TO the ultimate
user, especially with the banks stand
ing ready to finance almost any kind
of sale. When the banks shutdown
on their easy loans, however, and
the prospect list began to narrow
dealers found that many of the sales
men they had considered stars
MclC iH6 auu
had very little real sales ability
Faced with tho necessity of going
out and really selling motor trucks
these dealer organizations have not
been able to meet the test. On ton
Of this. the banks have not only
stopped financing motor truck sales
but they have also curtailed their
credit to dealers, and the result has
been disastrous to many dealer or
PLANTATIONS. Some manufacturers
who have built up their dealer or
ganiZations with more regard ia
quantity than quality. have suddenly
come TO the realization that they
have few dealers who are equipped
both financially and from q salesman
ship standpoint to 20 out after husi-
ness. These companies are hardest
hit.
Conservative Manufacturers I.ose
Few Dealers.
Among more conservative manu-
facturers. who have been careful in
the selection OF their dealers and
who have left territory open rather
than cover IL with q mediocre deal
or. there has been less grief I'm the
present situation. and these COM
panies are nearest their schedules on
actual production. They have lost
few. IL any. dealers, and they are
still able to get considerable bust
ness because their dealer organiza-