The Washington times., 1927-07-20

Every manufacturer in the busi-t
aASg realizes the importance of
having everything in as near per-
feet readiness as possible for me
Intensive merchandising campaigns
that are proposed to Immediately
follow the introduction of the new
models and lines, according to B,
III. Cram, president of Grams Auto
motive Reports.
Reducing dealer stocks is prob
ably the foremost effort of the mo-
ment. Not only is this activity
confined to manufacturers who are
getting ready to place new and
improved products in their selling
organizations hands, but 1t seems
TO be the "order of the day" for
all.
Dealers Must Unburden
1t is absolutely necessary that
the dealers be unburdened as much
as possible at this time if the in
dustry expects to do a real bust
ness in the second half This is the
general consensus of opinion, and
apparently the basis on which
manufacturers are going to work
until the situation is satisfactorily
cleared away.
Some idea of the movement may
be had from the following facts:
stocks of cars in dealers hands
One large producer is reducing
SIS per cent; another, 40 per cent;
and still another, 25 per cent; while
the manufacturer who was formerly
the largest producer in the popular
price class has practically swept
the floors clean.
The second half is going to be a
battle royal for business, and
stratgetic positions are essential to
success.
With sales slow at the moment,
due, in a large extent, to the general
practice of the industry in bringing
out new vehicles during July and
early August, production Is being
held below current demand, with
dealer stocks supplying the diff
ference.
And while new car stocks are
being lowered, manufacturers are
also attempting to help their dealers
with their used car inventories.
Used Car Departments Busy
Departments specializing in used
car merchandising are at work, both
in the field and at the factories.
Dealers are being assisted in both
buying and selling, and 1t is now
quite evident that many manufac-
turers realize that this part of the
business must be given the same
factory attention as new cars. They
both go to make up the dealers
business-and the dealer business is
the life stream of the manufac-
turer.
Instead Of pushing new car sales
20 a point where they must be OBJ
tanned at any cost. dealers are today
being told in many instances, that
1t is better to slow down than TO
trade at a loss. This is a step for
ward and will go far in future
sterilization Of the industry.
And so. while the majority of an
nouncements of new models will
not be forthcoming for several
weeks yet, manufacturers are. and
have been for some time, working
closely with their dealers in an
effort to have everything in readi'
ness for the business battle In the
second half. Many developments
are likely to take place which can
be more readily COPIED with If con
d1tlonS are favorable
As is the case quite often during
the year, price is again one of the
subjects that is occupying a promi
nent place in the manufacturers
mind at this time. The introduce
ton of the new models is respon
sible for the present discussion.
Market Is Low Priced
While sales have clearly shown
during the first half that the pres
ent market is low priced one, ant
that any price action would I'M
doubtedly be downward. it is no
believed that the general situation
during the last six months will b
much different from that in tn
opening periods. In fact, the auto
motive dollar has more purcha sin
power now than any other, and
Is contended that price stah'liza
ton in a reasonable degree wi
probably be shown throughout tn
remainder of the year
Nevertheless, possible pric
changes are being seriously con
sidered, and the effects carefull
weighed. This is a further caus
for present determined action t
get "the house in order" -
Readiness for Emergency
Being ready to meet any an
every emergency is going to be tn
deciding factor in the last hal
years automotive business" al
cording to leading officials. an
this seems to be the basis on whic
present activity is taking place.
New models and lines are rapid