Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-07-01
RECORD YEAR SEEN
IN AUTO INDUSTRY
Output for Past Six Months
Likely to Stand as Best
for Like Period.

NEW YORK. June 30.--Automobile
production for the last six months OF
this year seems likely to be the largest
ever known in any similar period Had
it not been for the eXpectedly slow out
put of the second largest producer in
the first six months of this year. there
is no question that 1923 would have
gone down into history as the greatest
period of automobile outturn ever
known.
Not only have sales advanced to the
place where there is an automobile for
each six citizens in the country. but That
half years production of all the COM
panies outside of the second largest in
tercst has showed gain of 30 per cent
as compared with the corresponding
period of 1927.
Part of this is attributable to the
elimination of excise taxes. part is due
to the production OF new and at
tractive models, and a part is due to
the remarkable prosperity of the coun-
try and the stability of the general
business situation in the agricultural as
well as in the industrial field.
For the moment production Is off
from it's recent peaks. This is due TO
the preparations being made for pro-
duction of new models. Those new
types are calculated to spur the con-
sumner demand appreciably within the
next three weeks. The production OF
the second largest interest is slowly but
steadily expanding and now exceeds
5000 units daily
So far as profits are concerned not
all the producers are faring alike
Some find the difference between profits
and losses extremely narrow but there
is every reason 10 believe the eStab-
lished. we'll financed large scale guam
tity producers will make a better show
ing on the right side of the ledger than
In 1927.
The position Of some of the quality
producers Is illustrated by the state
ment of President Forbes of the Pierce
Arrow Motor Car Co. In his appeal to
shareholders TO ratify the proposed
merging of Pierce Arrow with Stude-
baker, Mr. Farbes said; 1T is a grave
question whether the isolated automo-
bile unit can compete with companies
whose volume of production and diver
sification give them stability. buying
power and financial resources far be-
yond those which can be commanded
by company having only limited pro-
duction''
Not only are new cars being sold
with extraordinary rapidity, but the
situation OF the used car stocks is more
satisfactory than 1t has been for many
years. Stocks of used cars on hand have
declined materially and the steady
turnover OF the secondhand vehicles
is an indication of an extremely healthy
business condition. The demand for
these cars has increased despite the
large number of transactions which
no trade-in on new car is involved.
The deficit in trade-inS is attributed
by automobile sales executives to two
main causes, First, the increased number
Of families who are keeping their old car
as a second car instead of trading it in ;
and second, the large number of fam
lilies who are now driving all the mileage
out of their old cars and then scrap
ping them. This tendency has grown
with the greater appreciation of the
owners of the profits to themselves OF
getting all the mileage possible out of
their cars instead of sacrificing them
and allowing some one else TO make this
gain.
An indication of the trend of pro-
duction is shown by the contracts now
being closed with the producers of
raw materials and accessories used in
automobile manufacture. One unit of
the leading interest has just placed an
order involving 100000 pounds of con-
veying machinery for handling sand.
molds and castings, and involving
100000. This machinery will be in
stalled at Saginaw. Mich. for operation
November l. The C. o. Bartlett and
Snow Co. Of Cleveland which received
this contract, was also awarded SINH
lar contract for another unit of the
leading interest next year.
The Midland Steel Products Co. has
Just closed large contract for brakes
with the leading automobile concern.
The company is rearranging It's Detroit
plants in order to Segregate the brake
manufacturing end of It's work from its
other products.