New-York tribune., 1922-06-24
Manufacturing Schedules Of
Motor Industry Will Be
CuriaiIed 20 Per Cent
in July. Detroit Hears
sreclal Dl,raieh % ~ rr,bs..


DETROIT. June o. Indications Of
manufacturing schedules In July are
that there will be 4 30 per cent redue-
ton from the present volume OF output
for the industry - whole. but many
companies will continue manufacturing
at present speed With some com
panies there will be an Increase over
earlier spring months. but these will
be companies which have been delayed
in geiting into production and when
built up a large number of orders
pending production.
The speed at which leading unit
parts makers are operating 10 good
indication OF the volume Of ears whieh
may be expected 20 be built In July.
with the parts makers June probably
will be the greatest month OF the year.
some companies declaring fs.ly ths.
+, will he the largest production month
in their histories. This - due 20 the
fact that they have been Handicapped
M 20 this time BY shortage OF material
and labor. and also undereouipped Tor
the tremendous demands imposed upon
them.
Car makers using these parts viii
feel the effect OF their heavy pfodue-
iion in July and will be manufacturing
a, capacity 10 keep up with their de.
liverics and prevent the piiing up OF
stock. There Is little doubt Of their
ability. however. 20 turn over their
finished car, as rapidly ss they are
in recent Of materials. and they WI
probably operate for AZ least the sum
mer months upon orders already on
their books. In the fall they probably
will have TO look 20 new business %
hold up their production rate.
There continues 70 be a shortage IN
cars Of standard make and dealers arr
continuing 10 sell on a long.term de-
livery basis. In open models this
extends in most eaSes from two 20
four weeks. and in inclosed models
orders the delivery basis is from four
10 six weeks. This indicates capacity
business in the standard lines until AK
least August I. and there IL every
indication that the pressure of business
will be maintained through 20 Sep
tembcr.
The demand for inelosed ears through
the spring has been phenomenal and
entirely beyond the antieipasions OF
manufacturers. With the season wen
advanced into the summer, there NOT
orly Is 10 decrease in the inelosed cnr
demand but il is showing inerease''
This is having n tendency 70 slow down
rctual production figures owing 70 the
more delicate structure OF the ine!osed
vehieles. but il resulting IN q muen
hicher monetary turnover for the fse-
.or;cs and is largely responsible for
increased earnings.
Tho movement to increase dealer rep,
reseniation throughout the country OF
all important companies - continuing
and much attention is being gwen ~
executives 70 mi. work. Distributor
formerly holding exclusive retail torn
tories are having pressure prougnt 70
hear upon them 10 increase the dealet
-eprcscntation in their territorie. 70
point where il may be intensivsly euiti-
r,,cd FOR sales. In some cases the rae
tories arc assuming the rcsponsioility
for increasing their sales organization
10 insure the thoroughness with when
the territory will be covered. =.
Used cars are moving rapidly IN sli
,ar,. ~ the country rs = result OF the
.kor,age 4, rev cars and IL has been
found no lonrcr necessary 70 set up
bargain prices 10 move them. A. mat.
tor OF fact denlcrs taking IN exchanged
eors End themselves in position Tor
the first time in several years to sell
them ~ profit One retail branch OF
T. leading faetory. unable to get new
cars in quantities sought have gone
into tho used car business on an .Iten-
,ivc scale and report sales as high "
800 monthly.
Several new models are promised for
introduction by standard makers in the