Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-11-22

curing in the car makers merchah-
6ising methods" Mr.. Cram declares
land forecasts new era for the auto
mobile dealer, Is, 600 of whom, our
records show, have gone into pank-
ruptcy in the past. two years.
THE manufacturers refusal mere
tofore, to tip Off the dealer that ne
was shortly to bring OUT new
model, has been one or the man,
reasons for this great numper OF
BANKRUPTCIES among dealers. he mas
permitted the dealer to contract for
large numbers of his current model
at the very moment he was prepar
ing to introduce a new modei tnat
would render obsolete those being
contracted for. As a result me
dealer frequently has had on ms
hands cars that were old-fashlonea
even though they never had been
driven and which he could sell only
with difficulty and at a severe loss.
Often he has been Immediately tore.
ed out OF business or repetitlon Oh
this treatment has compelled him
finally 70 retire.
Certain factors have arisen TO
force the car maker to begin re-
yamping this phase of his mer-
chandising. but the main one has
been the dealers refusal to be the
goat any longer. The long shoulder
. ing resentment of the dealer on this
matter is coming to head. with the
result that a number of car makers
have consented not to allow dealers
to purchase more cars than are
needed to fill orders on hand when
changes in the car are being con-
sidered and have privately advised
dealers to go slow because shortly
| new models are to appear.
universal adoption of this plan
among car makers is certain. The
! first result will be the finding of
| fewer dealers with unsold models on
| hand that represent great loss II
| not bankruptcy for each dealer. a
second benefit will be the decreased
| number of cars that will be obsolete
| tomorrow being dumped upon the
| unsuspecting public. The latter will
benefit eventually in other ways. The
| public always pays finally for any
| loss and it pays whenever a dealer
goes bankrupt. Imagine then how
, much 1t has cost us in the shape OF
higher prices of cars for the $4,000
dealer bankruptcies in the last two
| years.
ITO the close observer of the
industry this new attitude on the
! makers part means mucn, because
he has given in not only 10 the
dealer insistence but to the
changes that are occurringiin the in
dustry, changes he cannot prevent
though, admittedly. he is not at
tempting to. Some of these are
| that the public today is driving its
cars longer than it formerly did
| driving them to the limit of the
life that was built into them; that
the public is less and less being
| aroused over the advent of new
models, and now considers the auto
mobile as 1t considers talking ma
chimes, pianos or the kitchen stove
something to use until it wears out
and not to be cast aside because {
better type has appeared, and, last
ly, 1t means the period of over might
changes in automobiles is coming tC
an end.
I'VE are approaching the time
when we will see fewer and less
drastic changes in cars. We are
coming nearer the hour OF the ulti-
mate car. Not long in the future
we will witness arrival of the event
ual automobile, subject only tc
minor changes, built along stock