The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1921-07-09
AUTO SALES GAIN AS|
|PR|CE ADJUSTMENTS
SIMULTANEOUSLY
Production Rate at Present
About TWo-thirds OF
Last Year.

Price REIMBURSEMENT in the automo-
bile industry seems 10 have been
about completed. Judging from the
final report Just issued by the Ma
tional Automobile Chamber Of Com
Inerce, which shows changed prices
on the various makes OF cars. The
new prices in many instances go
back to the figures of few years
ago, Notwithstanding that the mod
els. in many cases, are bigger with
better finish and such additional
equipment as cord tires and i'm
proved electrical apparatus.
In the opinion OF students of the
Industry. the mid-year change has
now stabilized the Industry 10 de-
TO all companies.
Carload shipments from the fac
tories during April and May were
81 per cent Of tho production for
the same two months of last year,
and there is reason to believe June
will be at approximately the same
rate.
BUSINESS ON GAIN.
Compared with the feverish rush of
motor cars last spring two-thirds
of. but compared with normal years
1t shows that the motor-car busi-
ness is faring much better than
other lines.
There has been steady demand
for used cars. prices of which have
also been substantially reduced.
Lower prices on new cars have been
offset somewhat by the reduced al
lowances on used cars when offered
for a trade-in by the retail buyer.
In other words, many who waited
for the reductions of the past few
months saved comparatively little
| owing to the lower valuation on
their old car.
Good buying power has been shown
where prices have been reduced or
where 1t was known present prices
and quality would be maintained.
The National Automobile Chamber Of
Commerce figures show that with
more than s,no0. 900 passenger cars
| in use the replacement demand alone
should be about 900 900 cars. The
| production OF passenger cars last
| year was 1.SS3,00o. To show how
close are the new prices, one OF the
largest manufacturers in his last cut
was only able TO reduce x26. This
manufacturer is producing at the rate
/ This readJustment period some cars
are being sold at a loss because OF
the high wages and the costly ma
terials that were bought last fall
CONDITIONS MORE STABLE.
while this week may bring a few
more changes IN cars that have not
been reduced this year. IL Is generally
agreed that the mid-year reductions
Rave stabilized conditions In the In
dustry, with little possibility OF
further changes during 1921.
THE success OF the automobile in
dustry has been based on big produc-
tion and the resulting low price.
which insure broad market. For
that reason, every effort has been
made to produce better cars at lower
prices to insure the big productions
which make increased values pos
sible. Moreover, in these readjust-
ments of the past few weeks, motor
car manufacturers generally have
taken into consideration the need for
!ncreas ed car and truck sales by the
80, 900 dealers throughout the country.
''The truck business continues 10
be on a par with general business.
but with an improved future just as
soon as general construction and
road building programs get under
way and railroads perfect their plans
for the use Of motor trucks for short
haul traffic and in connection with
daliysry