San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-03-11
Ugh Motor Value at Low
Prices Made Possible
by Big Production.
ERVICE TO PUBLIC
asses May Now Enjoy
Many Luxuries as Well
l. as Necessities. ss
g By A. r. ERSKINE.

III ne manufacture OF uStlui tulIlSs
RI large quantities, which reduces the
NJ of their production, makes pos
&le the enjoyment by the mass OF
'sSSa of many Of the luxuries as
HI as the necessities Of life. Quantity
xbduction has greatly increased the
xmber of employed persons, thus
<ling to the wages and buying pow
T. of the people and promoting ma
' nal prosperity and happiness. IL
s is a public service, then our
hntity production industries are
at public servants.
Quantity production may be ap-
; led to the manufacture of any
u icle of common use. Wherever eff
iently applied it will inevitably re-
Zee cost and thereby increase con-
kmption. The size apd scope of
ancial resources, plant facilities and
tsaniZation necessary to engage in
I1antity production depend upon the
hracter of the article to be pro-
ICED. The resources organization
ld equipment for production of
a tchss, pins or chewing gum meas
3e but a fraction of those required
Il typewriters, pianos or automo-
3es. AS automobiles are the most
Ittly articles produced by industry
4 common use, vast resources are
Huired for their manufacture in
|fge quantities.
Large Capital Required.
lit is a business involving scores
millions Of dollars, great plant
filities, large and efficient organ
itions. Plant facilities, including
|fequate sanitary buildings. scientific
Oily equipped with machinery, fix
|!res. jigs. dies, tools, gauges. etc,
st from S25,0O0,000 to 500, 900, 900
A individual cases. Raw materials
d operating supplies are purchased
n great quantities. Labor operations
Re standardized, and workmen are
Pecialists. The ablest engineers,
|htallurgists. chemists, production ex-
Lrts. inspectors and executives con-
flute the man power back of the
tlchine, the organization and the
Foduct.
Automobiles produced in Quantities
such organizations are manufac-
fred at minimum cost because Cal
Ne plant facilities are adequate for
n most complete and economical
c1ssfacture. (b) the raw materials
C bought at the lowest possible price,
b the labor is specialized and eff
yient and Cd the overhead expenses
" car are reduced to the minimum.
he "devouring monster" in produc-
pm costs of motor cars is overhead
penses. of which there are two
|nds, namely. direct and indirect
ferheads. Direct overheads, which
|ust be absorbed by the production
Ehether it is large or small. cover
e fixed expenses of maintaining the
apartments Of the organization, such
the administrative, engineering.
fecifications, purchase, stores. super
|tendence. inspection. accounting and
Tipping departments, as we'll as in
rance and taxes.
Where Saving Effected.
These direct overheads may easily
Mount to 100000 per year in a
e plant. IF the production of the
ant is 10000 cars, $3.50 is absorbed
Il this overhead in the cost of each
lr produced, whereas but $50 per
r is absorbed if the production is
10000 cars. These direct overhead
Epenses of the manufacturing de-
|irtment are duplicated in the admin
|trative, sales and advertising depart
tents after the product is shipped
ON the plants. and in addition to
bis the indirect overheads covering
Expenses, which vary with volume of
reduction, both Of manufacturing
nd commercial nature. must be in
| uded in the final price of the pro-
bet. 1t is in overhead expenses,
|ierefore. that the greatest savings in
psf are made by quantity production.
There are approximately 100 plants
reducing automobiles in this country.
they vary in efficiency from zero to
100 per cent. Neither the product,
he manufacturing facilities nor the
|bility of the organization of any two
exactly alike. Consequently the
bsts of these plants vary according
b their respective equipment, ability
ia output, but as each must make
profit over and above its cost of
whether it be low cost
r a high cost. it follows that its
'rices are based upon its costs. and
OF upon the intrinsic value of its
roduct, as would be the case if its
roduct we're a commodity. or a
APPLE article, instead of proprietary
rticle.
Price Divergence Explained.
These are the reasons why such
ide differences exist between prices
L motor cars, and why the public
bmetimes groups cars according to
rices into "price class" as indica-
I've of value. Examination into the
ubject of quality discloses little that
ustifies the fancy prices asked for
many automobiles. They all use gray
ron castings, carbon steel. alloy
teels. malleable castings, aluminium
:stings and small quantities of
rome and brass. No car weighing
ay. $500 pounds contains more than
go worth of these raw metals. Cord
Tres, leather. glass. wood. electrical
pparatus and general equipment used
n tfine cars are pretty much alike.
I is not in the materials, therefore,
hat high prices are explained.
As the finest quality of raw ma
erials and equipment. comparable to
hat used in the highest priced cars,
; built into high grade standardized
made in quantity. and to
uote the opinion of well-known
rade journal. there is nothing in-
erent in quantity production meth
els that renders maximum quality i'm
pssible to attain" and as, finally,
ksSoverhead expenses per car pro-
Iuced are reduced to the minimum by
production. it follows that
n quantity production cars of the
Liehast nualitv can be huilt and sold