The Washington herald., 1921-02-27
AUTO BAROMETER
INDICATES GREAT
BUSINESS AHEAD
Official of Continental
Motors Says Big De-
mand Now.

The Motor and Accessory Manu-
facturers' Association made public
statement by g. w. Yoeman, vice
president and treasurer of the Con-
tinental Motors Corporation. Detroit,
Mich. analyzing the present condi-
tions in the automotive industry
and the immediate outlook.
This statement is not a routine
optimistic survey based on generali-
ties. but rather a frank summary
of the salient facts as seen BY the
executive official of one of the
barometer" companies Of the In
dustry. The analysis was presented
In the form Of q personal letter from
Mr.. Yeoman to S. s. Meyers, general
counsel Of the Motor and Accessory
Manufacturers Association, who di-
rects the AFFAIRS of the ASSOCIATIONS
credit, service committee. and 10,
therefore. in particularly close touch
with the day to day financial de-
velopments and the general indus
trial trends in the automotive Held.
In connection with his work on
the credit service committee OF the
association, Mr.. Meyers wrote to Mr..
Yeoman and asked for candid
statement as to whether or not there
were any signs of a revival in the
automobile and truck field.
in reply to your letter of the 1st.
asking whether or not there were
any signs of a revival in the auto
mobile and truck field, I can only,
| say you SHOULD have been at the
| Chicago show" said Mr.. Yoeman.
"All manufacturers have turned
from pessimists to optimists. They
are not only securing a new agency,
but the agents are actually selling
Q large number of cars.
Put on More Men.
This condition is further evil
denced by the fact that we have
been compelled to put on nearly
1000 men in our Detroit plant, where
we build automobile motorY only, to
meet this months demand. 1t Is
safe to say that our orders for de-
livery in the month of March will
be from 80 to 40 per cent greater
than the February demand.
IF anyone tells you this is only
a little squirt and that the demand
\ will decrease. tell them that they
are crazy. IT is the writer's belief
that the present demand for auto
mobiles will steadily increase each
month up to June 1. Statistics of
| this industry will show that each
year the sales slow up to a certain
extent about June 1. This is caused
/ by manufacturers introducing new
models at that time of the year.
Next June may be an exception to
the rule but II there is any slow
ing Up 1t will only last for a short
period. There has been too much
written by people who are not
| posted. as to the worlds demand
for cars being near the saturation
point, but as you well know. IL the
automobile manufacturers are called
upon to build in 1921 only the cars
for replacement it will give them
a good business.
The business of the Continental
Motors Corporation is good
barometer upon which to base your
judgment. At the present time the
gasoline engine stocks at the car
manufacturers plants are very low
and we are no doubt receiving the
first indications of automobile in
dustry's comeback.
viii BE on Cash Basis.
Sixty to ninety days from now
| the automobile business. through
the possibilities of liquidating large
stocks of inventory, should be in
very advantageous position to
again establish itself on cash
basis.
The sale of trucks has not yet
started in any volume, although we
have orders in hand from about 60
per cent of our customers for ship
ments the latter part of February
and the months of March and April.
As you probably know, all motor
equipment used by industrial firms
have been greatly reduced and
therefore the minute other lines of
business improve there will be a
steady demand for truck transport
tation.
Our entire organization is OF a
hrm belief that the automobile and
truck industry is built on a strong
foundation and that the products
are as necessary to the upbuilding
OF this country as the raising of
foodstuffs and other so-called staple
PARTICLES.
The automobile especially is
again on the way to several years
Of prosperity"