Evening star., 1924-07-26
AUTO TRADE AIDED
BY PRICE STABILITY
Ford Statement Clears Air for
Makers-6O0, 900 Used
Cars Are UnSold.
NY J. G.. ROYLE.
Special Dispatch to The Star.

Special Dispatch to The Star
NEW YORK. July 2s.-rhe state
ment Of Edsel Ford, president OF the
Ford Motor Company, to his branch
managers that no further price
changes were contemplated at pres
ent for Ford models has removed one
OF the most disturbing elements in
the industry. In consequence. pro-
duction at other plants is showing
improvement.
While there was danger Of Ford
price changes plans were held up all
along the line, but now executives of
the leading factories are going ahead
confidently. Industrial employment
In Detroit, regarded as an accurate
barometer of the trade, increased
1881 In the last week. This was the
first weekly increase reported in four
months and brought the total to 1885,
46o.
Closed Cars Change Schedules.
further turn for the better is ex-
some Summer Inventories, still in
progress. may hold back activities
slightly. Close students of the auto
mobile business are turning to the
belief that the peak season of the in
oustry hereafter will be in the Fall
instead Of in the Spring. This is based
on the growing preference Of buyers
for closed cars.
Nearly 40 per cent Of all the Fords
now manufactured are closed models.
Hudson cars are of the closed type.
Ono large company will offer both
its closed and open models at the
same price on September /. As in
dicatinE the improvement in manu-
featuring activity the Saginaw Malle-
able Iron Company, a branch of Cen
eral Motors. has resumed operations
and the Gray Iron Foundry and the
Jacox plant at Saginaw are working
at better than 50 per cent of capacity.
Banker. watching Foras.
Ford dealers and bankers closely
associated with the automobile in
dustry are watching closely for a
new move along financial lines by the
Ford company. There Is no secret
about the fact that an enormous cash
surplus has piled UP in the Ford
treasury. This money up to the pres
the banks OF the country, and there
has been an impression that those
institutions have been favored which
| have been most liberal in financing
Ford dealers and discounting their
paper.
The Ford company has exacted high
rates OF interest on their cash de-
posits, and in some instances banks
nave not shown great anxiety to Sc
cure this business and have declined
to pay the rate demanded.
The trade and the automobile
bankers therefore, are anticipating
the possible formation with a part Of
this money Of a finance company to
handle the paper Of Ford dealers, both
wholesale and retail
Plans Still DARK Secret.
At present the dealers depend on
financiers believe that IL some OF the
Ford surplus were invested in a
nnAnce or acceptance corporation. or
| ganized along somewhat similar lines
to those OF the General Acceptance
would earn high interest and at the
| same time give the company valu-
able sales aid. Such q project IL it is
planned has not as yet passed the
The demand for new models has
shown a decided improvement recent
iy. but manufacturers and dealers are
wondering whether the frequent
ofansss on IN MODELS is not productive
body changes, dealers declare, mean
losses for those who are carrying
stocks OF old models and serve to ere
ate bad feeling among buyers. They
oSSSIt that prospect VINO purchases
1924 model in May, and has 4 new
model by the same company come out
in July. is likely to be dissruntled.
| since the introduction OF the new
model reduces the secondhand, or
trade-in value Of his car
00O, 900 Uno0lA Used Cars,
Dealers who received heavy stocks
of new cars this spring have made
desperate efforts to clear them and
have been extremely liberal in takin 3
used cars at high valuation in part
payment In consequence IL is esti-
mated that there now are over 500 900
used cars unsold in dealers hands.
This constitutes a heavy burden on
the industry as . whole