Evening star., 1922-08-12
THREATENED AUTO PRICE WAR
SEEMS CURBED BY ACTIVITIES
Three Big Motor Companies at Detroit
Busy Turning Out Cars Rapidly-Sur-
vey of Trade on Cut Comparisons.
BY PHIL 8. HANNA.

Special Dispatch to The Star.
| DETROIT, August 12.-Price slash
ing by the automobile companies con-
tinued this week with both Hupmo-
bile Company and REQ people an
nouncing cuts, but some of the IN
tensity of a threatened price war,
which was evident last week in the
reductions announced by General Mo-
tors, followed simultaneously by the
leading independents, was lacking.
| At the moment the equilibrium OF
car prices in the Ford class mas ROT
been disturbed. If Willys-Overland
gets back thoroughly on its feet they
may be heard from, but at present
| none of the big three-F'ord, CheVro-
let and Oyerland--has shown a dis
position to act. Ford is sWampeo
with business; Chevrolet, with "
900 cars a month, is making good
money, probably the best IN ITS re-
cent history. and Overland. selllne
| about 400 cars a day, would proba-
bly, rather continue at that rate on
present prices than take chances on
a price war with Ford and Chevrolet
Some motor bankers say the same
about Chevrolet, namely, "let well
enough alone"
Perhaps this is the explanation why
the small Chevrolet touring car, the
big seller, was not reduced with other
| Chevrolet models August ]. But. un-
less all signs fail. there VIII be some
thing doing before long in the Ford
class of cars. Ford dealers here ana
, there are fastening to unload cars
on hand, while one hears more often
about a new Chevrolet to sell at
low price.
Four ClassifcatiOns Made.
An accurate comparison of cuts
made by the various General Motors
| units with cuts made by other makers
is difficult to draw because of the
! wide variations in the equipment and
construction of models. but in order
to get some idea of how the leading
| independents line up against the Cen
eral Motors combination. four classl-
fications of touring cars and one class
ification of closed cars have been
made.
In the four-cylinder, medium-sized
touring class. General Motors. with
| the FB Chevrolet and the Buick, is
Il now practically on a price parity with
! Maxwell. Dodge. bort and Nash.
Maxwell is rapidly regaining its finan
cial health and Dodge Brothers has a
reserve for most any kind of pro-
! longed battle. As the number of cars
in this class sold annually is second
| in volume to the Ford class. the main
fight for leadership may be staged
right here.
| IN lne IlSnt SIX class, EeHtrdl MO-
tors. with the Oakland now is a con-
tender for honors against the Stude-
| baker and the Jewett. while in the
so-called quality six class. the Buick,
Chalmers, Studebaker and the Nash.
Buick aud Studebaker have had
pretty race this year. with indications
that Studebaker got the lead in sales.
| Hence the pricing of Buick $50 under
its rival gives rise to opinions that
here will be another interesting con-
-; .lor-E
cation, Studebaker Hudson and the
Chandler have been cut, as have the
Buick and Oldsmobile of the General
Motors.
Closed Car Reductions.
The largest reductions have been
made in the closed-car models, consid-
ering the growing demand. Take the
for example: Hudson now has one at
S2,295; Nash. S2l90, and Studeb ebaker.
$3.50. General Motors comes back
with a Buick at S2.195 and an Olds
eight for S2,l45. The banking frater-
nifty sees a great significance in the
corporations move toward lower
prices at time when the public de-
mand is large. 1t is believed that,
first, it would like to regain its banner
1919 production of 100000 vehicles.
With debts and inventories pared
down this would return ample profits.
as costs have been cut simultaneously
with car prices, and, second. il is be-
lieved the corporation is looking ahead
with a view to increasing its momen-
tum as a going concern, so that either
of two possible haZards-the formid-
able competition of similar combi
nation or the dimlnutlon of the public
demand-cannot weaken its position.
Detroit refuses TO believe that Ford
is through expanding as Henry Ford
grows older and Edsel Ford grows
more powerful The twenty-year con-
sistency record of the older Ford may
give way to the ambitions of the
Iyounger Ford, and with the Ford back
ing. a new combination of factories
might cause trouble even with the
General Motors.