New-York tribune., 1922-01-08
Lower Prices Aid Buyer and Maker Of Auto,,,ol:1o-
rl;rect to = Consumer Reduc-
ions Promise Stabilized
Conditions for Industry.
N.A.C.C. Manager Believes
Better Service Assured
Motor Vehicle Production of
1.68O. 1000 Due to Clean
ing Out High Inventories
BY Alfred Reeves

ctaernl Manager National Automo-
Bile Chamber Of Commerce
Becsuss automobile manufacturers
edueed prices directly to the final
consumer, instead Of lowering them to
the wholesaler and retailer, the auto
mobile business Jared very much bet
ter during 1921 than was generally ex-
rected, and better than many other
lines Of manufacture
The increasing need for highway
transportation. coupled with price re-
ductions in tires, gasoline and other
things entering into car maintenance
permitted production Of about $780,
900 motor vehicles, or only "a per cent
less than the 2.2O5 900 in the record
year Of 1920. OF these $4,000 were
trucks and about 1885, 900 passenger
cars.
Slow General Business Affects
The decrease in truck production was
proportionately greater than in pas
senger cars because of the falling off
in the demand for transportation that
came in the decrease of general busi-
ness, a development that affected the
railroads to an equal degree.
These reduced prices have not been
|facturers and the $4,000 motor car
dealers, but it was deemed worth while
because, with final price adjustments
about completed the industry enters
1922 with high prices and inventories
|liouidated, labor more efficient. finances
adjusted and definite aud economical
production programs under way. The
adjustments have been drastic. with
mparatively few motor companies
showing any profit for the past year,
but in the opinion of economists and
bankers the action taken will make for
smuch healthier situation during 1922.
This year the export market is ex-
pected to broaden. and with better
highways and general business condi-
tons the industry should continue its
steady growth-a growth which. Incl
dentally, began in 1899. when 300 mo-
tor cars we're produced. The possibili-
ties of the world markets are best
shown by the fact that in 1920 more
than 10000 motor vehicles were cx-
ported to IA different countries.
The 1921 registration figures show
little more than 100000 cars and
'TuCkS. WnlCN mean rcpidcencHtS OF
probably l,400 600 vehicles this year
The keen competition fer these re-
placements and the other potential
markets will bring out better cars and
letter values than ever before.
Must Serve 10000 900 Owners
A big job for the industry now is to
keep these 100000 motor vehicles
properly serviced, and it is safe to say
that consumer satisfaction is going to
he prime factor in the success CT any
company this year.
The $4,000 who purchased new
motor vehicles this year have received
the benefits of the postwar rcadjust
ment in prices and Improvement III
service. Wholesale price curves have
been falling generally, but in many
businesses the retailer has yet to take
his loss. In the automobile industry,
however, the reductions have all been
made direct TO the consumer. 1t is this
prompt liquidation policy which gives
promise Of an carly recovery in the
automobile trade when general bust
ness recovers. Dealers aud manufact-
urers do not look to sec any larger out
put in 1922 than in 1921. unless world
conditions take rapid change for the
better. We cannot go far ahead of the