New-York tribune., 1922-07-08
Believe Holidays
Will Reduce July
Auto Production
Inventory Periods Also Ex-
pected to Lower Total,
but Daily Schedules Are
Practically Up to June
Special Dispatch to The Tribune

DETROIT, July Inventory periods
and holidays will reduce production
during July to point considerably
below the figures established by the
automobile industry in May and June,
but nevertheless the month will rank
high in comparison with other years,
it Is believed here. The demand for
cars is continuing strong, and IL the
months production were to be based
upon actual business in hand the total
would run very high.
Considered on daily basis, the
schedules set for July in most facto-
ries are practically identical with the
schedules of May and June. Factory
sales managers assert there is no indi-
cation of decided falling off in busi-
ness, though sectional decreases are
being noted. Buying in industrial CEN
ters remains steady, with increases
noted in sections which started later
IN general business Improvement
The price reductions Of July were
limited to one prominent company, but
this lead will be followed at intervals
through the summer by most others.
These reductions will for the most part
be inclosed cars, though some compa-
MES will make slight reductions on
open models. Substantial cuts will be
made only on the closed cars.
These reductions, unlike those Of the
recent past, will be based on the
strength of the market rather than on
weakness. Buying of closed cars this
year, has been unprecedented and has
resulted in much of the prosperity ac-
crulng to the industry as whole. AS
pointed out earlier, the prices on
closed cars were based on produc-
tlon much lower than resulted. The
Increased business has made it possi-
BILE to bring the prices down.
Lower prices will be an important
factor in keeping business steady
through the year. Fall Is the time
when inclosed cars enjoy an almost ex-
elusive demand and the lower prices
are expected to result in an appeal to
the careful buyers that will bring
many into the market. Many manu-
facturers feel that the conservative
buyer has not really come into the
market as yet, but the combination of
improved business conditions and low
er prices will bring him out.
Sprightliness of models will be an
important feature of the fall market.
The big companies have been working
quietly on new creations which are
now about due. Special merchandising
efforts will be loosed with the appear
ance of these new cars which will have
the effect, temporarily at least, of d.
vertlng business to the companies
staging the most effective effort. In
appearance the cars will not depart
materially from established lines.
Business in the truck factories in
July will run considerably higher than
in June. There was somewhat Of a
slump in the early part of that month
which was overcome toward the end.
One leading factory declares july will
be it's largest month in two years.
Production in all truck factories Is low
in comparison to the capacity of the
plants, but this is due to overbNlding
under the pressure Of war orders
With the exception Of the war demand,
truck business to-day compares favor
ably with any period in the past.
Parts makers are looking forward to
considerable volume of business from,
companies which plan to build gaso-
line-propelled cars for railroads and
trolley lines. Experiments conducted
by these companies have resulted In
decisions to proceed with the manu-
facture of limited quantities of cars
While this business is developing the
companies will buy many of their
parts from standard unit makers
complete car will be effected under one
roof. Included in these companies are
some of the leading railroad compa-
MES, which will use their regular engi-
neering departments and shops for the
early work.