New-York tribune., 1922-07-01
Predict a Decline
In Retail Sales
OF Autos Soon
Number of Spotty Sections
Increasing. Say Makers;
Capacity Output for An
other Month Is Assured
Special Dispatch 10 The Tr,bur,


DETROIT. June 30.-lndications that
retail salcs Of automobiles are due 10
fall of IN the near future is found by
factory executives in the increase in
number OF spotty sections and the ap-
pearance Of some sections in which
business has shown a decided falling
cf. Ito this time, however. the losses
IN some sections have been overcome
BY increases in others so that factory
production for az least another month
will be close TO capacity.
Southern districts are showing the
greatest decrease in business at this
time, owing largely 10 the warm wealth
or, which has always had the effect OF
lowering demand. This is not general
throughout the South, however, as
some sections are maintaining very
brisk buying, this being especially
true in Tennessee and North Carolina.
Industrial cities in the East and
Middle West which have beer slow in
overcoming the after war depression.
and which have been affected by the
stI;ke and other causes. are showing
reeessions in sales, in some buying
having come 10 an abrupt halt. Other
industrial cities which have been fav-
ored with coed business throughout
the year continue 20 absorb cars
steadily. Many Of these good and bad
spots are located within a few miles
Of each other. as for instance Balti-
more and Washington, the former fall
ing of, the latter increasing.
Buying in the farm districts to this
time has for the most part come from
professional men and business men in
these districts rather than from the
farmer himself The real farm buying
Is no, expected 20 Get under way until
August or September, when the turn-
over e crops begins.
Manufacturers do no: look for q
severe falling OF during the summer,
but take the attitude that II there IS an
unusual drop in sales ;hey must trim
their policies so as 20 meet lighter
business than ordinarily was 20 be ex-
pccted in the fall. A sharp drop in
;he summer will be interpreted as
warning against expecting too large a
volume Of buying IN the fall.
Almost any sort Of buying will bring
the industry 10 a point where II viii
exceed the business OF 1921, and fair
business for the rest Of the year viii
mean a very profitable year for the in
iustry as a whole. Many leading
companies have dore more business in
.he first six months OF this year than
thcy did in all OF 1921. With good
normal business in the summer and
fall months the industry will create a
new yearly production marx. the total
az 1920 being already within reach OF
most leading companies
/ A leading sales executive declared
this week that the buying OF the year
has been due moro TO belief on the
part Of General business that good
times were coming, rather than shat
they were here. He takes the position
. that there had been lit,le buying or the
part OF the conservative business man
and worker and that this business will
NANTES. itself IN 1923. when the other
industries OF the country are on a
more stable basis.
There will be no reduction in opera
,ions by parts companies in July, the
month being required. officials assert,
70 catch up on their orders. There
has been 70 reduction in commitments
from automobile makers 10 the leading
unit parts makers. a condition that in-
dieates that the month will see prac-
,ically as many cars made as in earlier
months Of the year.
There are probably a dozen manu-.
facturers Of cars in the higher priced
fcld who are experimenting with light
er cars az this time. and there is a
strong probability that IN a number
IF these cases new light models will be
introduced As built. they would be
similar 10 the large cars now bearing
the names OF these companies. but
would have lighter construction and be
% smaller appearance and design.
TIE appearance Of these light cars will
have an important bearing in keeping
these companies in the forefront Of the
industry.