The Washington times., 1924-02-19
PROFITS.
FOR 1928
FELL
Net income Did Not Keep
Pace With increased
Business.
BY MARSHALL b. WALKER,
COamOpolitan NeWa Service.

Cosmopolitan News Service.
DETROIT, Mich, Feb. 19.-Auto-
mobile manufacturers are Of the
opinion that price increases win
not become general. although ad-
vances made during the last week
by Oldsmobile, Oakland and Dodge
are said to be forerunners Of aim
liar boosts by other companies.
There are several reasons given
for the necessity Of price increases
but manufacturers realize that COM
ptition will be keen this year and
they desire to keep them at the
present level IL possible. mo-
While the 1928 sales, in units,
broke all records, the profits did
not keep proportionate pace in COM
parison with other years.
Profit Deeply Cut.
The last six months Of 1923 did
not show returns Of income COM
mensurate with the volume Of bust.
ness and there was a falling off
from those Of the first six months.
Margin Of profit was cut almost to
nothing on some models, 1t is said,
and there is a feeling that the price
reductions last summer and fall
were carried too far.
Materials and labor are costing
more, and refinements on cars,
such as balloon tires and four wheel
brakes and increasing preference
for closed vehicles, are additional
elements bringing about the in
creases in prices.
1t will be noted that two of these
companies, which have advanced
their prices, are units Of the Gen.
eral Motors Corporation. The fact
that General Motors in 1923 estab-
lished new high records in sales and
earnings has been Swallowed by In.
dications that in the last six months
Of the year, net was considerably
below the average Of the first two
quarters.
On an output Of sss,SS4 vehicles
in the second half of the year, net
earnings were less than those re-
allied on the sale Of 10000 less
cars in 1922, thus showing a mar
rover margin of profit on which
the corporation was working. Off
Gals look for a recovery in earn
ings during the first six months
of 1924, and these price changes
will help to do it.
Ford L. Silent.
AS for Ford, he IL silent regard
ing possible price boosts by his
company. However, If his old
policy continues to work out-of
increased production and decreased
costs Of manufacturer. usually fol-
lowed by cheaper prices to the pur-
chaser-and his prediction for 1924
comes true, he win not solve
prices up.
1--WE are planning for a Is to 20
per cent increase in output this
year, says Ford, ''and I am con-
fident we will manufacture between
$500, 900 and 100000 units In 1924
in all plants"
Under his often announced plan,
this increase in production should
to q certain extent cover up de-
crease in total margin of profits
and enable him to avoid. any ad.
vance In prices. g.,
Production in all automobile
plants continues at a high level,
with every indication that they will
go into the spring months at q
record breaking pace, sales are re-
ported to be keeping nearly in
pace with output.
Buick is increasing capacity to
1900 cars a day with a planned
output Of from $4,000 to 100000
cars this year.
Dodge Brothers are building about
900 cars a day, and expect to COM
plete $4,000 cars this month.
Demand Is Heavy.
Rickenbaclker is building sixty
five cars a day and there are near
ly 1000 orders waiting.
Willys-Overlan Is continuing pro-
duction at the same rate as Janu-
airy when 22,05S cars were built.
Only a delay in receipt OF GER
tain materials Is preventing Hud.
SON Essex from being at capacity
operation, as demand greatly ex-
ceeds the present ability to supply.