New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-03
Price Levels i'm
Auto Industry Are
Well Shaken Down
Now That July | Has Been
Passed IL Is Believed That
There Will BE Little Re-
auctions for Some Time

Price REIMBURSEMENT in the automo-
Bile industry seems to have been about
completed, Judging from the final report
Just issued by the National Automobile
chamber Of Commerce, which shows
changed prices on the various makes
OF cars. The new prices in many in
stances go back to the figures of few
years ago, notwithstanding that the
models in many cases are bigger, with
better finish and such additional equip
ment as cord tires and improved cleo
trlcal apparatus
In the opinion of students of the in
dustry, the mid-year change has now
Stabilized the industry to a degree that
Is bringing Increased sales to ali COM
panies.
Carload shipments from the fac
tories during April and May were CT
per cent of the production for the
same two months of last year, and
there is reason to believe June will be
at approximately the same rate.
Compared with the feverish rush OF
motor cars last spring two thirds de-
mand looks to be big falling off, but
compared with normal years it shows
that the motor car business is faring
much better than other lines.
There has been a steady demand for
used cars, prices of which have also
been substantially reduced. Lower prices
on new cars have been offset some
what by the reduced allowances on
used cars when offered for tradc-in
by the retail buyer. In other words,
many who waited for the reductions
OF the past few months saved COM
paratlvely little, owing to the lower
valuation on their old car.
Good buying power has been shown
where prices have been reduced or
where it was known that present
tanned. The National Automobile
Chamber of Commerce figures show
that with more than 100000 pas
senger cars in use the replacement
demand alone should be about 1,O00.-
coo cars. The production of pas
senger cars last year was 1,Sa3,000. To
snow how close are the new prices
one of the largest manufacturers in
ms last cut was able only to reduce
SIS. This manufacturer is producing
at the rate of 10000 vehicles a month.
During this reimbursement period some
cars are being sold at loss because
of the high wages and the costly ma
terials that were bought last fall.
This week may bring few more
changes in cars that have not been
reduced this year, and it is generally
agreed that the mid-year reductions
have stabilized conditions in the in
dustry, with little possibility Of further
changes during 1921.
The success of the automobile indus
try has been based on big production
and the resulting low prices which in
sure a broad market. For that reason
every effort has been made to produce
better cars al lower prices to insure
the big productions which make in
creased values possible. Moreover, in
these establishments of the last few
weeks, motor car manufacturers gen
orally have taken into consideration
! the need for increased car and truck
sales by the $4,000 dealers through out
/ the country.
The truck business continues to be
on par with general business, but
with an improved future just as soon
as general construction and read build
| ing programs get under way and rail
roads perfect their plans for the use
I Of motor trucks for short haul traffic
and in connection with store-door de-
! hvery.