Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-03-14
AUTO CONCERNS
FIND BUSINESS
T0N UPGRADE
Increase in Orders is Highly
Encouraged; Material
Shortage Seen =

Automotive industrial circles have
experienced a we'll defined upward
trend in manufacturing and sales con-
ditions throughout the United States,
and the barometer is the order book
that received a volume of business at
the national shows in New York and
Chicago and the dealers expositions
in the leading eastern and middle
western cities that was unexpectedly
big.
Factories in the automobile manu-
featuring belt have shownthe first ac-
tivity since late in the summer, when
the readjustment wave struck the east
and effectively stopped industry in all
lines.
Plants that for months have been
completely idle, and those that were
turning out just a few cars to keep
their organizations together have re-
sumed building automobiles on a more
aggressive and more substantial scale.
And this resumption was based solely
on actual orders, and not on optimis-
tic hopes.
Strong Buying Attitude Shown.
The hundreds Of thousands Of per-
sons who attended the big shows in
the eastern part Of the country showed
a stronger buying attitude than any
manufacturer dared to expect, and the
distributors who came to the shows
from every district in the land brought
optimism that was backed up by def
mite orders and shipping dates.
The sudde let-down in business last
summer came as a shock to the man.
ufacturer. who. believing it was but
production. When no turn for the
better came. and when there was q
big surplus Of automobiles. the plants
were closed and the forces reduced to
such an extent that the effect was the
same. The surplus OF cars in dealers
hands had to be consumed before big
production would be resumed.
Surplus Stocks Being Depleted.
With production almost at a stand
still, n with a respectable amount
of buying going on throughout the
country, the surplus stocks have been
considerably depleted, whioA-best is
indicated by the revival Of buying by
dealers, who took the same position
as the manufacturer and quit buying
until he moved his stock of cars.
There has come a big change in
the industry. TOO. with the breathing
spell the manufacturer has had. There
might have been a great many deep
signs in the breathing process, but
the maker has about. made up his
mind that the days Of quota are
gone. From now on it will he more
OF a program Of manufacturing cars
to definite orders and shipping sched-
ules. The former process Of having a
dealer estimate how many cars hi ex-
poets to sell and then planning spro-
u%uction' on that basis has just about
said its farewell in the automobile
business. Hereafter when a dealer
orders cars from the factory they will
be shipped on definite orders, and the
dealer will buy on the same basis.
Strike Of Buyers Ended.
The automobile buyers strike has
fully proved. One thing that settled
market conditions was the absence OF
radical price arrangement at the big
shows. Some persons had been mis-
guided into believing that the price
slashing Of last fall would be dupli-
Gated, but a turn in the opposite d.
rection has been noticed. Several. care
have advanced in price since the show
circuit opened in the east. And there
likely will be of them. Price re-
auctions, leaders in the industry stout
ly aver, are out of the question. mas
much as many plants are actually los
ing money on cars they are now build
ing. Present prices are based on big
production, and in view Of the fact
that outputs are small there is no
margin of profit to the maker.
Manufacturers are looking forward
to q. big volume Of business during the
spring months, and incidentally a
strong likelihood Of real shortage in
cars. Considering that the January
1t1s1sj' production Of factories was
only 81 per e of that in January,
1920, shows that builders are sliding
back on car supply. Normal buying
in February, March and April will
bring the biggest a shortage in the
history Of the industry.
Difficulty in Getting Materials.
This likelihood is made virtually a
fact in advance due to the troubles
that manufacturers already are ex-
periencing in getting materials and
parts.
Following the leading Of automobile
tplants, the parts makers shut down in
the summer, and they have found
their troubles in trying to get under
way TO meet the sudden demands from
manufacturers OF cars. The result IL
h a along with the unmatched In.
ventories Of the factories. car makers
are unable to get various units in
equal number. In other words. they
cannot get the same number OF mo-
tors. rear axles, ignition outfits, etc.,
so they a build only so many auto
mobiles az those for which they have
every unit.
After what the east has gone
through In the last six months it
seems strange to say that car factories
cannot get materials from their usual
sources in sufficient amount to meet
their needs. Carload lots Of units are
out OF the question, due to restricted
manufacture, 80 automobile plants
Unjust take them piecemeai, which
means shipping by express instead
of freight, thereby adding to the cost
Of manufacture.
SURE-START FUEIdZER.
This Is a hot-spot two-way intake
manifold with nrime. |or