Evening star., 1924-06-22
DENIES AUTO TRADE
IS GRIPPED IN SLUMP
W. K. Angel of Continental Mo.
tors Says q. S. Is Still Short
1000, 1000 Cars.
UNREST MENTAL, HE AYERS
Foreign Demand for Machines
Also Declared Increasing.
UNREST MENTAL, HE AYERS

Special Dispatch to The Star.
DETROIT. June 21.-That there is
no basic reason for the statement
made by some that tho automobile
industry is in the throes of a slump
is the belief of W. r. Angel, vice
president of the Continental Motors
Corporation, builders of motors for
many standard autmobiles and
trucks.
In an interview recently Mr.. Angel
said that it was his opinion that
the present unrest was purely men
tai one, there being no real founda-
tion for ii, except perhaps that this
Is presidential year.
'As far as l can see, the automo-
bile and truck business is establish
ing itself on a firm and permanent
foundation. Our earnings this year
are certainly greater than last year
and our schedules from manutac-
turers indicate improved conditions.
Some people talk about the satura-
tion point as being close at hand.
For my part, l believe they are
wrong. Statistics show that If the
entire country were as dense with
cars as California is there would
need to be in the neighborhood OF
36,Oo0,000 cars registered IN tne
United States. While it is not likely
have the car density of California, a
good criterion to figure by would
probably be South Dakota. To equal
the present density OF South Dakota
cars or more in the hands of own
SrS.
1000, 900 Shortage Seen.
AT the end of 1928 there were
about 100000 cars and trucks reg
,irh
IS 100000 short of the requirements
when even South Dakota is used as
a criterion. When you. consider the
average life of a car is approxima te-
II five years one can readily see that
each year the number of cars which
have outlived their usefulness VIII
increase. Probably 100000 cars will
be required this year for replace
ment purposes alone and this number
will gradually increase each year.
Take into consideration also the
fact that the saturation point viii be
constantly moved up from year to
year, keeping pace with the increas-
ing population, increasing per ca plta
wealth. increasing good roads, etc.
Even If we should ever reach the
eaturation point in the United States
think of the very large demand in
foreign fields which is constantly in
CreaSing. When one considers that
only 1S per cent of all the automo-
biles in use are owned outside of the
United States you can get some idea
of the tremendous trade possibilities
in Canada, Europe. Asia, Australia
and South America This will be es-
pecially true of the British Isles,
where the House of Commons has
recently lowered the tariff on auto
mobiles imported.
Prepares for Future.
when American demand has been
satisfied automobile manufacturers
will be in d position to seek other
markets. They <,ill be in many re-
Spects better prepared TO compete in
those markets by reason of the fact
that they can produce cars at a
lower cost as the volume of produc
uon increase
Taking it all in all I can see abb
solutely no reason for any pessi-
mistic feeling on the part of those
manufacturers who have builded
safely toward the trend of the de-
mand and Who are equipped with
modern machinery and efficient bust
ness methods to give the public
transportation facilities at minimum
costs"