New-York tribune., 1922-11-18
Retail Agencies
Draw Attention OF
Automobile Plants
Smaller Factories Face Diff
cult PrGbiesas i'm Finding
Dealers Wiah Pro per
Financial Connections
seeciat psgpateA 70 The rr.eisns


DETROIT, Nov. 17.Firapcing prob
5lems OF factories end dealer organiza
tioas are Of primary Importance in the
sautomotive industry AS this time cs
year. With preparations under way for
manufacturing schaslnles In 1923 II
iB OF utmost Importance that dealer
organizations be built 70 a poiY1s where
they will insure retail outlet for pro-
ductfor. As most of the large car
makers are planning increased output
In 1923, the. dealer field is being care
fuliy overhauIed and strengthened u
meet the increased sales requirements
Factories making more or less stand
araized cars aSe practically free frop
financing worries, as bankers IN ali
parts OF the country have eVinceG
| willingness at all sSraes 30 meet ths
credit Ieens OF their deasera. STsalieJ
factories are finding the task Of obtain
/ ing dealers with proper financial con
| fnectiors more and more diff7cuit as the
large factories throw. open distEShotion
and sales districts TO new dealers. Sole
distributing and sales rights as for
merely existing in the industry are
! rapidly becoming extinct, aRd this
altered policy OF the large Bsanuf2ctar.
/ ers makes it extremely difficult for the
smaller factories so hold dealers.
| IRE time apparently - rapidly ap
| preaching when the snaaller factories
| will be compelled to con6ne thetr n1er-
Ichandising efsort to tho larger cities
and districts particularly favorable te
! the sale Of their cars, thse beng
/ brought about by the changing finan-
cial attitude toward the Industry. ~
smaller cities and rural districts banks
arc frankly epSosed TO the nnanciSk
Of dealers in the lower production
classes aud are extending open arms
to the dealers in cars of large produe-
ton aud national prominence
I One Of the largest manufacturers ~
the industry in che last few weeks sas s,,
concluded g financial arrangement with
Ia large banking housa whereby all o.
it's sales to it's dealers will be handed
by the banking interesstHi the DIS
| tributor or dealer paying only smah
per cent in CASH unstl the cars are
sold, and the retail -tEaDsaction also
being handled by the bank il desired
! This step has been. taken bErthis par
ticular company to pernnt Us dealers
to operate on an established credit
basis and will enable the factory to
maintain operations during the winter
season against anticipated spriRg De
n.and .#sr .a2fszL
! While there continues sto De NJ
active demand for iueiosed' models y
practically all Inass ct aicaYs. the de
mand for open models has sfallen of
heavily, due TO sesgonal-Gn Gnsrdltions, Sc
that Jew factories arc operating o.
better than 80 TO rs percentage o.
earlier year activitys Thst5 factories
with strong dealer organizations ars
starting to build against spring retail
demand, following tine, usual season OF
conventions and meetings at which
manufacturing and sales policies dur
ing the coming year were outlined ano
sales contracts made. Those factories
whose dealers nre not strong enough
to finance q stock Of cars over the
winter are operating on Snm edfate
business only and are eonseauantiy COB
siderably below eaElier year opera