Every evening, Wilmington daily commercial., 1922-05-01
MOTOR CAR LARGEST
MERCHANDISE UNIT,
SAYS p. S. OU POINT
Continued from page 1.
s,itution in the automotive industry
Mr.. du pNut's Letter.

Continued from page 1. >.
s,itution in tho automotive industry.
Mr. dH Points Letter.
Mr.. du pont. who is chairman OF T.. L
du pont de Ncmours 4 Company, IL also
president OF General Motors Corpora
,icn. Mr.. du pont has addressed n
letter TO the $4,000 Stockholders Of
General Motors, which II unique in
many respects. IL marks quite a de-
parturc from the customary commun-
ivations of corporation executives 20
their stockholders. The communica-
tion In part follows
The automobile liz the largest unit
cf merchandise sold for cash To the
individual consumer.
In the early history OF the Industry,
a. there was no parallel To follow.
motor makers cculd not prom; by the
credit merchandising experience m
either manufactures. Today the mer-
Chandising of the automobile Us upon
the threshold OF transition from a cash
ca credit basis, similar to that
Through which has passed the mer-
,handising of nearly every other pro-
duct.
The selling and advertising force
behind the marketing OF automo-
hilos has outstripped the progress of
the credit machinery available 20 the
industry. To supplement the credits
which local bankers have extended
10 the automobile industry. n group
.f specialized financing companies en-
tered the field and they have done
pioneer work In credit merchandising
The General Motors Acceptance
Corporation was organized three
Years ago under the banking law OF
the state Of New York az an associ-
nted independent banking institution
60 provide credit Accommodations for
General Motors distributors and deal
srs and purchasers OF General Motors
products. The functions ~ General
Motors Acceptance Corporation are
o. supplement local existing banking
facilities. which acComplishes two
1hiugh. first-that General Motors
distributors and dealers. with approved
credit STANDING. are enabled to finance
their purchases and sales upon thor
oughly sound banking basis; which in
iutn means. second that General
Motors Corporation is enabled 10 sell
i's products Tor cash. This necessitates
capital than would be needed were the
corporation itself 60 attempt to eS-
tend credits generally.
"At this time of year the desire 20
buy automobiles is strongest and the
demand hv individuals for credit sc-
ronnodations is greatest. Accommo-
dations under the GMAC Plan are
available only 90 those who measure
Ap to proper credit standards. Our
stork holders are all concerned In the
financial success ~ General Motors.
am directing attention 20 the GMAC
Ilan of financing, which has been and
Will continue "a be instrumental In
AugmCnting sales, tn order that the
stockholders may fully appreciate this
important part 81 our merchandising
sNstfm. With clear understanding
o. This am con fldent stockholders can
go viii cooperate in stimulating sales
a. oar ears. trucks and other prod
upts"
VII, Specialized Financing Is Neccs.
sary.
certain fundamental conditions. Mr.
d. pont saws are peculiar TO the mer-
cha rdising 81 the automobile. and de-
'mand specialized credit and banking
service. These conditions may be
grouped as follows:
Factories. 20 build the very best
products and sell them for the lowest
possible price. must operate al a uni
form rate the year round; but the re-
rai sales of automobiles are greste'
~ a certain season than at others. II
tho spring. when the retail sale o
motor cars is the greatest. 1t would b.
impossible FOR the manufacturers u
produce sufficient cars TO meet the de
mand. In order. therefore. To manu-
fncturc az as even a rate as possible
products must be stored during tn
season % lower sales. awaiting tn
season OF greater sales. The burden o
storing motor vehicles fails upon IN
distributor and dealer. Sufficient stor
sge spac. would not be available a
the factories, or. II available. the We