Evening star., 1924-10-14
SEES fine future
|. IN AUTO INDUSTRY
General Motors Official Ex-
poets Few Price Changes
for Considerable Time.
BY J. c. ROYLE.

hx - Cs hO1 LIZ.
Special Dispatch to The Star
NEW YORK, October 14-'Tf I did
not have the utmost confidence that
there was great future still before
the automobile industry / would have
gotten out of it," That was the
answer of Charles S. Mott, vice presi-
dent of the General Motors Corpora
ton. to question by the writer as
to the situation facing the motor
world.
The statement had nothing to do
with Mr.. Motifs personal bread and
butter, for not only is he one of the
largest stockholders of his company.
but he Is heavily interested in other
manufacturing activities. He made
1t plain that he could be content only
by connection with an industry which
involved development of the country
and Its resources as well as the COM
pany involved.
Excess Stocks Worked on.
The rushing of production ahead
OF demand which took place earlier
in the year Mr.. Mott continued,
undoubtedly was a mistake. But
the industry has recovered from that
error in remarkable way. Those
excess stocks have been worked off
gradually and satisfa ctorily and what
necessity Of cutting prices with at
tendant losses. In less than a month.
so Tar as our corporation is concerned,
these excess stocks will have been
cleared off and we will then go ahead
with production speeded up to a
basis commensurate with demand
Mr.. Mott indicated that he consid-
cred the condition of the country such
that the increased demand that has
a
be continued
Oppo~ed to Overproduction.
For the quantity producers" he
SAID, there is a point of production
below which profits cease and above
which they increase. 1t is impossible
TO forecast the future, but / see
nothing in the situation at present
which tends to reduce the volume of
output below the profit point the re-
malnder OF this year or the first of
next. i am strongly opposed, how
ever, to pushing up production and
increasing reserve stocks above de-
mand as was done by many manufac-
turers this year. The effects of an
oversupply are too far reaching, not
only to the manufacturers. but to
their employees, and to other indus
tries. For the automobile business
affects steel. the non-ferrous metals,
rubber and other commodities to an
astonishing extent"
Expects STEADY Prices.
The trend of prices in general, Mr..
Mott believes, will be stable for
some time to come. Most of the
manufacturers have already made
most of their adjustments in price
in conformity with the increase in
production costs" lie declared. Those
who have not done SO, however,
probably will be obliged to take that
step. What increases are to come
with most companies will probably
be light and dictated by special con-
Gitions.
changes in models 1 expect to see
r ainly confined to refinements. un-
less there appears some drastic de-
velopment in basic engine designs, which
is unforeseen at present Most of
| the companies Rave already got: II
out their 1925 models. The trade 10
| longer looks forward to the big au.o-
mobile shows held around the first
CT the year, such as the New York
auto show and it's Chicago ccuntc-
part, to produce something new and
unique in design.
Heavy Expense I'm Changes,
Economy naturally will dictate as
Few basic engine changes as possi-
bic. Few outside the industry realize
the expense involved in changing en-
gine models. A company can hardly
turn around for a couple million dol
lars these days"
In this connection another auto
mobile authority stated that he esti-
mated 1t cost one company $2O0o.o 900
IN cash to change its models for 1925
and S40,060,o00 in prospective sales
while the changes We're being made.
Most motor men feel that the at
tendance at the auto shows this win
ter will be as large as, or larger than,
ever, since the exhibitions have lost
none of their Importance as the an
nual meeting place for manufacturers
and dealers from all over the country.
Urges Better Roads.
Mr.. Mott laid stress on the. neces-
sity for road and street Improvement
to care for the increasing number of
automobiles and trucks in operation.
Detroit. for example, completed 4.
miles of wide roads this year, but
less than half the automobiles now
in operation in that city would fill
those new streets from curb to curb
and make any movement impossible