Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-12-31

most surely fall about 100000 cars be
low the fun capacity output. As "A result
OF this situation prices will probably
fall still more during the coming two
years as The industry, with its great pro
ructlye capacity, completes for the sale
Of It's output in markets where the pub
! lies purchasing ability has been sharply
reduced.
COST OF
CPKEEP REDUCED.
! During 1921 the expense OF owning and
operating n car has been materially re-
duced. The purchase price OF the av-
eraga car has come down 20 about 50
/ por cent Of what It was NJ the beginning
Of the year and in not few cases the
reduction IS considerably more than this.
Tho cost Of gasoline lubricating oil, and
tires have fallen much more than those OF
the cars.
II we take 100 as representing the
cost OF each OF these component items OF
expense IN January Of 1921 we shall find
that by the end Of the year tho cost
! OF the car was down 10 50, that OF gsso-
line 10 81, OF oil TO 81 and tires 20 Oh
Theme figures mean that the cost OF up
keep has fallen sharply and much more
than the cost Of the cars themselves.
Tho greatest saving has been effected
IN tires. which now cost less and give
better service than ever before. The av-
erage mileage has been increased until
1T IS probably fully double what Is was
IN 1910. The prices Of standard makes
htave been cut until they are lower than
NJ tho time of their previous lowest
point IN 1918. II the prices Of tho cars
and gasoline and oil, and tires arc com
pu,ed as Of the beginning OF 1921 and
again rs Of the end Of tho year, It Is
found that the cost Of owning a car has
fallen to about so per cent OF what Il
was year ago. while the expense OF op-
Grating Il has fallen to 60 per cent.
TRADE PROBLEMS
IN 1924.
Tho most serious problems Of ths In
dustry during 1872 will probably center
around tho second hand car turned In TO
tho dealer as part payment on nc"
car For a time the troubles arising
from this source will mostly AFFECT the
dealers. but later on they will have N be
seriously dealt with by the maDufac-
turer
There will be nothing novel in the stu
alton that is sure to arise It is ono
which must always confront an industry
that produces n new article Of such great
utility that large numbers Of people want
TO secure It Immediately. Under these con
ditions the industry expands with great
rapidIty and develops a large capacity
lin order 10 supply its customers who oro
huving for the first time. This Is the
problem that the supply departments OF
the army termed during tho war the
Iproblem of initial equipment.
After initial equipment has been sup
piled the market becomes one of re
placement, and when such m industry
reaches the stage In which most OF It's
sales are for replacement 1t discovers
that the annual capacity Il has created
IL greatly in excess Of It's needs. TINS mas
been the experience Of such industries
as those supplying harvesting imple-
ments. bicycles. and typewriters' ana IN
each case the allowance made for traded
lin, secondhand machines maze proved
vexstious and costly.
rho nrobIerns involved in making al
Iowences for the tradedin machines
arise at the point when the market
changes from being predominantiy ono OF
initial equipment to one mainly CON
cerned IN supplying requirements. APP
parentIy the automobile industry has just
reached this point. Under these condi-
tIons the industry seeks an outlet for its
great productive capacity. It cuts prices
and IL urges dealers to accept large
allotments of machines
In order to dispose Of his quota Of ma
chimes in the faco of the severe competi-
ton &c .fvaI makes, the dealer gives in
creaslngly large allowances for used ma
chimes that are turned in. Before long
his problem becomes one OF selling these
machines for enough 10 escape actual
loss, and he finds this difficult. The
ultimate solution found in the survival
OF those manufacturers and dealers who
give tho greatest value and the most
efficient service.
COMMERCIAL CARS
MAKERS SUFFER-.
The past year has been hard one for
the manufacturers of commercial cars
and trucks. It started out as u very
bad one indeed. During the first quar-
ter sales were reduced to small frac
ton Of their volume in 1920. and while
there was some improvement In the
spring, it was not great.
During the latter half of the year con-
dtions improved considerably A de-
mand for light and fast delivery cars and
for the lighter types OF trucks developed
TO fairly good proportions. Throughout
the year the sales OF heavy trucks have
| been small
In the main the market for light COM
rnercial cars and trucks depends on the
activity of general business, while that