Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-01-14
COMPETITION KEEN
IN AUTO INDUSTRY
Sales at Current Show Have
Broken All Previous
Records.

special DHhphtCH w Ahc S1"''
NEW YORK, January 14.-Condi-
tions in the automobile industry are
spotty and seem likely to continue so
for some time There is more strenu-
Gus fighting now IN progress among
manufacturers and dealers than is
likely to sdevelop in Nicaragua all
year. The automobile show now
drawing to a close here furnished
evidence of the above facts today.
Sales during the show have broken
all previous records so far. Attend
ance has been larger than ever before.
The interest of the public has been
made fully evident. But not a few
automobile executives say frankly
they would consider themselves lucky
If they have as good a year in 1927 as
they experienced in 1926.
Competition Is bitter and these men
expect it to continue so. On the other
hand, the market is active. Consumer
demand is keen and there Is plenty of
business in sight. It simply Is case
of which companies are going to get
It, Not all will obtain what they think
is fair share and for this reason
every knife is drawn for a fight for
profitable existence.
Merger Talk Here.
IT is the competition outlined above
which is leading to talk of so many
mergers. Not a few see possibilities
of a sharp cutting of costs in con-
solicitations. but so far these rumors
have not led to definite results. Not
a few executives have issued most
optimistic statements as to the fu'
ture Without doubt here is srong
justification for these expressions.
but men in the trade cannot but re-
member the fact that these executives
| in the positions they occupy cannot
afford to discourage either dealers or
ultimate consumers by being other
than optimistic.
Replacement demand is bound to
be exceedingly heavy. There is every
evidence that 1t will exceed $500, 900
cars. Export business gives promise
of being better than ever before. The
saturation point has not drawn ap-
preciabiy nearer in the United States.
The companies of America probably
will Amake and sell approximately
4 900 900 cars this year, but most of
these will be sold at prices which
leave a profit only on the basis OF
large volume production. These are
the facts back of the present strug-
gle.
Eve and ear appeal were the fea-
lures of the present show. Never
before have color schemes been so
artistic or attractive. New models
are numerous, but in most instances
the changes have been carefully cal
culated so as not to involve extensive
and expensive retooling. No such re-
strictions have hampered the paint
changes.
Noiseless Operation Is Goal.
Bodies have been built and chassis
assembled with the careful purpose OF
eliminating squeaks and rattles, and
noiseless operation is also stressed by
most exhibitors, The Ford Co. never
exhibits at the New York show, but
Ford dealers on the outside are as
active as those of other concerns
within. The plan of the Ford COM
panies to refurbish and rejuvenate
Ford cars at a comparatively reason
able price was not overlooked by a
single factor in the trade.
Trends, according to automotive en-.
gineers who study the effect Of the
exhibits on the public, are distinctly
toward the light. flexible type of We
hicle. There always will be market
for the huge, luxurious, expensive
types among a class Of buyers to
whom expense Is not a factor, but
men and women who drive their own
cars seem most interested in the
lighter models. The touring-car types
seem to have almost disappeared. The
crowds were grouped generally around
the closed cars, the roadsters and the
collapsible coupes.
The trend toward lightness, speed
and flexibility in traffic is coming
into the truck field also One large
producer has determined to put the
engine used in one of its most popular
passenger lines into its lighter one
and two ton trucks. Another big
truck manufacturer is just getting
into quantity production of a light
truck propelled by six-cylinder en-.
CINE.