The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1922-09-22
WHAT is GOING TO HAPPEN
In THE MOTOR CAR INDUSTRY
DURING THE NEXT I8 MONTHS?

These questions have been partial
ly answered in the regular semi-an
nual survey of the motor car indus
try conducted by the Jordan Motto
Car Company.
Edward S. Jordan, through hi
contact with thousands of dealer
throughout the country, manufactur
ers, bankers and business men
thinks he has the answer to all O.
these questions as far as any human
being is able to predict the future.
Here is what he saws:
There will be three periods durinf
the next eighteen months each O:
about six months duration.
THE first period win be one of cas-,
business for all manufacturers who
have already organized their en-,
closed body production.
The second period will be one OF
Keen competition with price reduc-
lions on enclosed cars due to the final
efforts of all manufacturers to attain
enclosed car output.
"The third period will be one of
rapidly rising labor costs and labor
difficulties, due to an approaching
period of secondary imitation brought
about by the Discrimination of labor
to accept wages that arc offered.
The first of January, 1924, should
be somewhere in the neighborhood of
the beginning Of the next depression
brought about by the attitude of la
Dor toward employers.
This attitude will be created by
the unusual lack of men due to cur
tailed immigration and the disincli-
nation Of the sons and daughters of
men who immigrated to this country
within the last twenty-five years to
do ordinary labor.
During the next ninety days, or
the first half of the first period.
there will be great shortage CT en-
closed cars. Only few manufac-
turers in the industry have been far
sighted enough to organize their pro-
duction sufficiently in advance to
take care of the demand.
This will mean a curtailment of
the sales with possible further price
reductions on the part of manufac-
turers who are not ready with guam
tlty production on enclosed models.
The larger producers of the indus
try are now going into increased pro-
ductlon on enclosed cars.
1.-The reason for this is that the
open car is rapidly becoming a lux
ury.
1T can be used satisfactorily for
only three months in the year. The
enclosed car can be used with salts
faction all the year around.
1.-The time will come when only peo-
pie of means sufficient to own two
automobiles will own an open car.
The average prices of automo-
blles will be increased during the next
twelve months.
This will be due to the extraordi-
nary demand in the open car field
for what is known as four passenger
sport model.
People are demanding more equip
ment, including trunk and larger
tires and other accessories which add
to their comfort and. convenience.
This means higher cost of produc-
ton.
added to this factor will be the
increased cost of building enclosed
cars against open cars. 1t will not
be possible to build enclosed cars on
the same price basis as the open cars
because they have to be built much |
more substantially. While for the |
first year it will appear that the diff |
ferential between the open and the en-
closed car will be slight, eventually |
The demand of the public will be for |
bodies of quality.
Summing up the whole automo-
bile situation for the next six months,
hose manufacturers who build en-
'losed cars of substantial, lasting quail
ty, will move more rapidly forward
han those who are either not pre-
pared for increased closed car pro-
iuction, or who are not building en-
losed cars of quality.
From the standpoint of the dealer,
t any man would like to find out
What dealers will survive in the in
iustry it is only necessary for him
% discover those that have actually
,een able to handle what is rapidly
becoming time payment business.
Eighty per cent of the cars sold
It retail are now sold on time bas-
S and practically every sale involves
trade. 1t may be said that absolute {
y every sale of an enclosed car in
olives trade.
"This means a close connection be-
ween the banker and the dealer.
Wherever that connection has been [
established the dealer will survive if
e is a good business man. Where it [
las not been established he will fail -