Evening star., 1924-12-15
AUTO MEN STUDY
OUTLOOK FOR 1925
Only Very Heavy Sales Are
Likely to Prevent Some
Large Consultations.
BY j. c. ROYLE,.
Special Dispatch to The Star.

NE" YORK, December 15.-Auto-
mobile manufacturers in every pro-
ducing center are busted with Wig
orous preparations for the New York
and Chicago shows. But the trend
OF the industry in 1925 is going TO
depend more on what the dealers tell
the manufacturers about the possible
sales demand than upon the new
models the makers are able to show
dealers and public.
Many OF the big compa MES have
already brought out their stock
models for 1925 and the changes, ac
cording to engineers in CLOSE touch
with developments. will consist most
ly OF "refinements," although some
artistic souls will not regard the
tlashy colors of the new bodies as
coming under that head.
1924 Output on 10 Per Cent.
What the dealers tell the manafac
turers, however, may affect prices
and rates of production and may de-
eide the fate Of several rumored con-
solidations. 1t has become evident
that output of cars and trucks in
1924 will be approximately 10 per
cent under 1928 production. Prelim-
mary figures for the first IL months
show production of 3,368,570 vehicles.
Estimating December output at 225,-
OoO as against 248,113 IN November,
brings the total to S.593,570, as COM
pared with 4,10S,000 In 1923.
1t has become evident that Winter
sales would not be as heavy as those
of a year ago and some price cuts
have been put into effect to stimulate
production. Whether these price
levels will be allowed to stand, will
depend on-sthe volume of consumer
demand with which dealers are sup
posed to be in close touch.
May Delay Mergers.
There have been indications as the
wear draws to a close that some COM
pauies might consolidate to co-ordi-
nate sales facilities, and cut overhead
and manufacturing costs. But II con-
sumer demand is heavy In the early
part of 1925. indicating that there Is
business enough to go around, some
prices may be increased and the long
expected era of consultations and
mergers may be postponed to another
year.
Manufacturers have not lost faith In
recuperative power of the industry
and are confident that demand Is still
far from the saturation point. Their
experience in 1924 substantiates this.
The outstanding achievement OF the
year was the disposal of vast stock
of cars without seriously anecting the
market or bankrupting q single i'm
portant company.
Huge Stocks Alarmed Makers.
The year started with nearly every
company working at capacity In
anticipation OF bigger business than
in. 1923. 1t soon became apparent
such business was not coming. Huge
stocks Of cars were piled up. At one
time in the Spring there must have
been 225.O0O Ford cars and possibly
an equal number OF all other makes
unsoId in the hands of the makers or
their dealers. This is nearly twice
the normal "hoat.
By Midsummer this vast amount OF
merchandise was disposed OF and
without. upsstting the industry finan-
cialIy. This IL regarded as one OF
the remarkable feasts in the history OF
American industry and emphasized .
the extreme nexibility of production
MACHINERY as well as the absorptive
power of the public.
Store Adopts New Plan.
|, The experiment Of Macy & Co..
large department store merchants, in
providing free garage space Tor
customers cars, which went into ef-
feet today, is being closely watched
both for it's effect on the automobile
| industry on traffic and on department
stores merchandising. Cars OF those
shoppers who drive themselves are
taken to the garage by store chauf-
feurs and returned when the shopper
is ready to leave. A restroom 10 pro-
/ yided for customers chauffeurs where
they may await calls for their en-
ployers. -
The merchants insure customers
| cars against theft, fre or damage
while in the garage and between the
garage and the store IL the car IL
driven by a store chauffeur.
| Secretary Hoover told the National
! Conference on Street and Highway
safety meeting in Washington today
that it was high time something was
done to eliminate waste In life and
property caused by traffic difficulties
He said he was convinced the con-
ference could make constructive sug'
restions. of the greatest Importance
but that remedy could not be oc-
] complished overnight.