New-York tribune., 1922-05-20
Detroit Factories Operating
at Greater Speed Than
Ever; Deliveries Delayed;
Foreign Demand Gaining
Special Dispatch to The Tribune

Special DtspCtch to The Tribune
DETROIT, May 9.-Automobie fac
tories in the Detroit district are now
operating on a schedule which make
practically certain the creation Of n
new high production mark for passcn-
ger cars for May. Earlier in the
getting into high speed owing to the
extra effort that had been expended
in the latter part Of April. Rccuper
ating from this, tho industry is now
operating at a speed probably greater
than any it has known before.
In this city. with the factories just
across the way, dealers are compelled
to take orders subject to from two to
four weeks delay in delivery. In some
Of the closed cars deliveries are de-
layed oven longer. Open cars in the
popular ines are being delivered in
about ten days, and this is fair aver
age of delivery delay. This condition
is particularly favorable for the deal
cr, making for ready sale of exchanged
cars and also permitting them to set
the prices on the "trade-ins" accepted
Practically every factory in the dis
trict is being visited daily by distribu-
tors from all parts of the country seek
ing concessions on deliveries. but con-
ccssions are not being made. Fac
tories have established definite allot-
ments, which arc being adhered to
closely, and the distributor three
blocks away from the plant is no bet
ter off than the distributor on the
Coast.
Plenty of Freight Cars
The industry is particularly bene-
hted at this time in having all the
freight cars needed Immediately avail
able. Two years ago, in the midst Of
the great buying movement rs much
effort WAS required to obtain shipping
facilities as to manufacture the car.
To-day sidings are kept constantly
filled up for the use of the manufac-
turers. Except to points in the i'm
mediate district there are no drive
aways. Lake steamers are carrying
hundreds of cars to cities along the
lake.
Export business is showing steady
gains. Companies which have extern
sve export connections are already
setting aside n certain proportion of
total production for the export trade
and in most cases, as with the domes
tic business, this proportion is below
the actual immediate orders. In fixing
the percentages, however, the COM
panics have favored the foreign trade
slightly, so that the dealers abroad
might have an opportunity to rccoup
IN mcasure for the lean eighteen
months rcriod just past.
One company reported the receipt Of
a cable from its Java dealer order
ing $500O0 worth of cars on the same
same dealer saying he would not be
~ 1N10 ~dny~ Toe Jo
shipment for many months.
Business in England is reported
showing a strong reaction to cars Of
American make. South American bust
ness is recovering steadily. Australia
is asking for cars, for the first time
in months, as are South Africa and
other rcmCte points. A feature of the
export business at this time is the
demand for closed cars.
Adding to Sales Force
Manufacturers are increasing their
dealer representation as rapidly as
possible. Success of several of the
lines now apparently most favored by
the buying public has shown the ad-
visibility of creating dealcrships in
every possible quarter, so that real in
tcusive sales development work may
Ec undertaken. In the larger cities
the dealers alc multiplying their sales
forces so that the campaign for bust
ness may be carried direct to the homes
of prospective owners in we'll organized
campa lrrs.
The present squirt in business is
accredited almost as much to the in
tensive sales work now being done as
to the natural recupcration after a
period OF depression. To keep the
business moving at consistently high
speed the intensive sales work is re
garded as all important and will be
continued permanently. In charting
the country it is likely that the hither-
to extensive territory of many dis
tributors will be greatly reduced, but
this is q condition that was bound
to come sooner or later.
Deliveries in material are now being
made without the delays which we're
frequent during April and the early
part of May. Manufacturing is now
only Il matter Of factory space and
help. Labor is being absorbed rapidly
in all plants. There is ample housing
in the city and the employment man
ayers are arranging to bring in many
workers from other cities in which in
dustrial conditions are slow to re-