Evening star., 1924-05-22
HIGHER AUTO PRICES
FORESEEN BY TRADE
Advances Already Announced
Taken as Indication of Reversal
of Downward Trend.
PRODUCTION COST GROWING
British Tariff Abolition Not Held
Material Benefit.
BY j. G. ROYLE.

Special Dispatch to The Star
NEW YORK, May 2-The fact that
the Chevrolet Motor Company has in
creased the prices on it's open models
from IS to $40 apiece and that the
prices for Rickenbacker cars will be
advanced June 1. is taken in motor
circles as the first indication of re-
versal in the movement of automo-
bile prices, which have been decreas-
ing steadily since last summer. The
amount of the Rickenback advance
has not yet been made public
The changes, manufacturers assert
are due mainly to higher production
costs. These have followed a lower
rate of output in the last two months
Many of the bankers closely asso-
ciated with the automotive industry
as well as dealers. expect several
other makers OF popular-priced cars
TO follow suit. The Overland models
are the only cars equipped with slid
ing gears selling in this country at
present under $500. but officials OF
the company have as yet given no in
dication as to whether they will fol-
low the swing Of the price pendulum
upward
Gossip OF Ford Price Decrease.
There is conside rable trade gossip
of "A further decrease in Ford prices
but factory officials say that any cut
is entirely unlikely. On the other
hand. they assert. prospects are bet
ter for an increase. The reports
reaching Detroit headquarters from
Ford plants and dealers all over the
country show that sales for the sec
ond ten days of May exceeded those OF
YGf I
that the distribution Of the third ten
day period will be even greater.
placing the total number of cars sold
during the month above 225.000.
The automobile trade realizes. how
ever, that even the Ford production
must be scaled down to agree with
summer demand. which is usually
lower than that Of the spring months
or stocks of cars at factories and in
dealers hands will become unwieldy
A curtailment at Ford factories. there
fore, would not cause surprise. IT is
generally anticipated that this would
be accomplished either by abolishinR
the shift which works between mid
night and am. or cutting the sched-
ule to IA five-day week
or No Prevent Benefit
1t is not expected that the removal
of duties by Great Britain on Ameri-
can motor car which becomes effec-
tive August 1, will have the effect
OF increasing sales materially for
months to come. American agents al
ready have cut the prices OF their
cars in England 90 per cent. but il
Will be necessary TO change the taste
of the British buying public to some
extent before the American models
become widely popular
The difficulty in selling American
cars. outside the initial cost prices. is
the fact that their upkeep and cost
OF operation appears excessive to
British users. The English motor
tax is based on cylinder capacity and
has favored type with small wheels
providing low tire costs. low clear
lfsh roads and small cylinder capac-
ity giving high mileage for the fuel
consumed
The tax up to now on Fords in Eng
land has made the owner pay nearly
onc-sixth of the first cost
Meet Active Competition.
The German and French manufac-
turers already make cars in accord
ance with the British ideas, and il
will be necessary for American
ton before the number of machines
exported to England can be greatly
augmented. There is a tremendous
field in the British Isles for American
cars, however, since at present there
is only one automobile there for each
110 inhabitants, whereas in the vi
cinity of New York there is a motor
car for each seven persons. Even at
this ratio, experts declare the satu-
ration point in and around New York
is still far off,