Evening star., 1924-12-31
Automobiles.

The automobile industry in 1924 had
almost as many ups and downs as the
roads the machines travelled. Manu-
facturers started out the year at a
pace never before equaled But they
failed correctly to gauge the market
and, before they knew it, their own
warehouses and those of their deal
ers were stocked with cars that
lacked purchasers. There was only
one thing to do, and that was de-
crease production. Manufacturers
curtailed output sharply, dealers in
stituted intensive drives, and, before
tho Summer was over surplus stocks
were reduced practically to normal
proportions and demand forced in
crease of production.
There has been no question of ap-
proach of the saturation point.
Makers started out determined to
have cars on hand for immediate de-
liveries to buyers who in other years
had to walt. When the buyers found
they could get cars without difficulty
the instant urge to buy them became
less insistent. Throughout 1t all,
however, there has been a steady un-
dercurrent of demand, and as the end
of the year approached, the working
schedules OF the factories were in
creased proportionately
The year did not equal the record
4
mere than 100000 cars were turned
out. When final figures are COM
piled for this year it practically is
certain that the output will be
slightly over 3,5O0000 vehicles The
Ford output will closely approac ch
that of 1923, when that company
manufactured practically as many
cars as all the. other American makers
! combined. The Hudson and Essex
sales have been of record breaking
proportions, and recent reductions in
price, possibly because of increased
output, kept the late season demand
at a remarkably high level Some
other makers followed suit.
There now are over 17,5O0.0 auto
mobiles and trucks in commission in
the United States today, and there is
every sign that the number will be
Increased at this years ratio in the
next twelvemonth. requirements
alone will require almost 1000, 900
cars in 1925
Price movements like production
have had many ups and downs Some
makers, depending on quantity pro-
ductlon have been able to cut prices
But it has not been a good year for
quality producers in general. Few
extreme changes in designs were
noted, but some factories neyerthe-
less, were forced to spend millions
III Te-equlpplng their factories for
production of new models Balloon
tires increased in popularity, but did
not eclipse the regular sizes on many
models Most changes were along
the lines of what the trade calls
'retinements" and brighter paint
work.
Despite the augmented buying
power of the automobile communi-
ties, the automobile manufacturers
never again will make the mistake
of loading themselves up with fin
ished cars beyonds the reasonable
limits of Immediate demand. on the
other hand, they Will move actively
toward lower costs of distribution
better regulated financing of time
purchases through larger initial pay
ments and shorter periods for com
pletion of iustalments, reduction in
trade in allowance. lower costs
Of production and better service to
owners.
Costs of materials have risen and
there seems little likelihood of fur
Their radical reductions in prices. Ad-
ditional buying revival is expected
after the turn of the year.