Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-07-03
PRICE REIMBURSEMENT
OF CARS COMPLETED
Opinion Now Is That Automobile
Industry Has Reached Stabi-
Iizution Stage.
SALES NOW ON INCREASE
Good Buying Power Shown by Pub
lie When Price Recession Make
!. Purchases Interesting From
Economy Standpoint.


Price rcadjustmcnt in tho automo-
bile industry seems To have been
about completed, judging from the
final report just issucd by the Ma
tional Automobile Chamber of Com
mercc, which shows changed prices
on the various makes OF ears. The
now prices In many instances go back
to the figures or "A few years ago,
not withs,anding that the models. in
many cases. are bigger with better
finish and such additional cuuipmcnt
as cord tires and improved electrical
apparatus.
In the opinion of students OF the
industry. the mid year change has
Spw stabilized the industry to Il de-
gree that liz bringing Increased sales
to all companies.
Carload shipments. from the fac
tories during April and May were 81
per cent Of the production for tn.
same two months Of last year. ana
there Is reason 10 believe June will
loo mt approximately the sam. rate
\ Compared with the fcvcrish rush OF
motor cars last spring "a two-thirds
demand looks 10 bc big falling OH
but compared with normal years II
shows that the motor car business IS
farint much better than other lines
There has been u steady donna nd
Tor used cars, prices which have al
no been substantially reduced. Lower
prices on new cars hav" been ons,t
some what 10y the reduced allowances
on used cars Nhcn offered FOR a
trado-in by the retail buyer In other
words many who waited for tho re-
auctions OF the past few months saved
:. pprnparaiiv"ly ilttle owing to the
; lower valuation ON their old car.
Good buying power has been shown
where prices have hccu reduced ~
whore II MAS known tina, present
prices AMI quality would y. main.
tanned The National Automobile
Chamber Of Commerce figures show
that with more than SOU. 600 pass"n.
ger ears in use. the Replacement, do
mand alone should be about 100000
ears The production OF passenger
cars last year was l,SS2,o0O TO show
how clos" arc the new prices. one of
the nrgest manufacturers in his last
Gut was only able to reduce S25. This
manufactured lS producing AT th.
rate Of 10000 vehicles q month. Dur
ing this reimbursement period some
cars are being sold At loss because
OF the high wages and the costly ma
tcrials that were bought last fan.
while this week may bring "a few
more changes in cars tina: have not
been reduced this year. IL is general
Is agreed that the mid year rcduc-
lions have stabilized conditions in the
industry with li,,lc possibility OF fur
thcr changes during 1921.
Success BASED on Mig Production.
The success OF the automobile in
Nustry has been based on big produc-
ton and the resulting low prices
which insure a broad market. For
that reason every effort has been
made to produce better cars at lowe:
prices 20 insure the big productions
which make increased values post.
bic. Moreover. in these rcadjustmcnts
OF the past fcw weeks. motor car
manufacturers generally have taken
into constipation the need for in
creased car AMI truck sales by the
$4,000 dealers throughout the cour-
try.
The fruck business continues TO
be on par with general business
bu, with an improved future just as
soon na general construction and
road building programs get under
way a;ll railroads perfect their plans
for the usc OF motor trucks for short
haul traffic and in connection with
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