San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-01-07
Another Record In Motor
Car Output Likely In 1928

Various statistical studies nave SHOWN !
th-t the average life of a car is between
five and six years On this basis about
1 100000 cars will be needed for re-
placements next year. Surveys made
BY the National Automobile Chamber
of Commerce for its 131 manufacturers,
show that 60 per cent of the motorists
using all types of cars declared their
next car would be of the closed type.
Closed jobs are now about 30 per cent
Of the total production.
Next years possibilities are based on
the fact that great many new pros,
poets" will be in the market for closed
cars. In fact it is not unlikely that
production may be lower than expected
because of the inability to get sufficient
closed bodies. Farm buying has not
been very heavy this year, but should
come in very strong in 1923. More
than 5000, 900 cars are owned by farm
ers. and they are constantly adding to
their motor equipment by trucks and
cars.
Exports Are Gaining.
Exports are steadily increasing. our
products last year going TO ia differ
ent countries. During 1922 We export
ed approximately $4,000 cars and TO-
600 trucks, as against the record year
of 1920, when cars exported were A.
900 and trucks 10000. The value for
all automotive products exported, in
Guiding tires, engines and parts; was
s123, 742 900, of which So ,OOO,Oe0 was
for cars.and SS,000,000 for trucks. Au-
tomobile manufacturers very properly
| look forward to the time when they VIII
export at least 20 per cent OF their pro-
| duction.
The popular car during the past year
was under $1,000. The average price OF
all cars sold last year was $40, and
the average retail price of trucks was
S105O. The big sales next year VIII
continue to be the cars selling below
$1,000. The Americans pride of owner
shin, however, keeps him buying better
cars each year, SO that there will be
nrosperity for concerns in all classes.
Some of the higher-priced cars have
made gigantic strides. 1t is worth not
ing, however, that people are beginning
| TO choose carefully and the standard,
| vell-advertised cars will enjoy the best
business in the various price classes
Room for Many Makers.
Occasionally we hear the statement
made that a few makers viii soon pro-
duce all the automobiles. 1t is true
that very large part OF the production,
probably so per cent, will come from
twelve or fourteen companies, but
there undoubtedly will always be
field for great many other companies
which produce cars with CHARACTERISTICS
and body STYLES that appeal to certain
buvers. There are now so companies
producing passenger cars, with failures
comparatively limited. In many cases
failed companies have been reorganzed
and started anew. A trade name in
the automobile industry dies very slow
ly. ,ooo
The problem for the industry in 1873
will not be engineering or manufactur-
ing. but distribution. The concern Will
| succeed best which has the best adver-
| Using and sales policy and the strong
est line of dealers. 1t is difficult now
for some of the smallest producers and
newcomers in the field to secure deal
ers, of which there are about 3S,OOO
listed in the records.
Connection will be keener than ever
before but with a substantial amount OF
business available for the enterprislng
companies selling cars of merit. 1t will
not be a year to plunge, but rather one
for progressive but conservative plans,
because there is ample capacity, with
the possible exception OF closed bodies.
for all the cars and trucks that will be
required during the next twelve months.
Production costs are rising and, while
there may be price increases here and
there, the general tendency will be for
the continuance of present prices. when
are very low and made in anticipation
of continued big production.
Truck Industry Improving.
Truck industry will continue to i'm
prove especially in lighter trucks or
| delivery wagons. Trucks are only
bought when business is in actual need
| of Increased transportation. ConSe-
auently. their sales follow the line of
general business. There are really two
| classes of truck business-one which
caters to national distribution and the
other of small productive capacity that
! markets most of its product in COM
paratively limited territory. Truck pro-
duction during the past year was about
$4,000 as against 154,550 in 1921 and
800 .O39 in 1920. Many other industries
nrosper when motor cars are selling.
| The railroads received 100000 carloads
of motor cars as freight last year: ap!
, proximately IS per cent OF rubber is
used in the industry; so per cent OF
gasoline. 80 per cent of the plate glass,
20 per cent of the aluminium, and per
cent of the steel.
1t is difficult to estimate with any
real accuracy the numb, r of motors that
can be used in this country. In some
states there is one for every five peo-
ple, while in a state like New York
| there is only one for every fourteen peo-
ple. With improved roads, the registra-
| ton of both cars and trucks may be ex-
pected to increase in a few years to
probably 100000 passenger cars and
100000 trucks and commercial wa
CONS which would mean a renewal de.
mand of from two to two and one-halt
million vehicles per year.
Motor Industry's Problems.
Aside from the keener competition OF
| next year, the industry faces a good
! many other problems. The need is
| pressing for the better training and par
| ticularly the better financing OF deal
ers so they can carry stocks during the
slow periods, thus permitting produc-
ton to continue on an even keel.
The used-car problem is undoubtedly
the darkest cloud on the horizon. In
ability of dealers to judge used-car val
ues properly is costing them tremendous
losses and has eliminated many from
the field. Aside from few of the low
priced cars, about seven out of ten sales
involve a used car, and unless a dealer
g. L.. s,Al all