Evening star., 1928-01-30
RETAIL AUTO MEN
STUDYING ECONOMY
Big Newspaper Advertising
Campaign Planned by
Car Dealers.
BY J. G. ROYLE.
Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, January 30.-With pro-
duction in the great manufacturing
centers moving rapidly toward capacity,
1t has become practically certain tnat
between 100000 and 100000 auto.
mobiles will be made this year. Radlcal
changes will be needed in Distribution
methods in order to sell them. Inat
is the problem which is gripping the
attention of the industry. /
One tried and proved method OF
stimulating sales will be retained. Prac-
tically every motor manufacturer
admits the potency of newspaper adver-
Using, and advertising campaigns are
being planned in various cities which
contemplate volume of newspaper
space rivaling even the department
stores Carefully written. straight-from-
the-Shoulder messages containing actual
facts about the cars involved are being
distributed through the newspaper
mediums.
Makers realize that selling costs must
be reduced to keep pace with lower
expenses in manufacture and lower
prices. Yet these costs must be cut
without lessening the income of the
alert. successful, salesman. who Is too
valuable an asset to lose. Consequently.
the salesman also is being put on a
quantity production basis.
100000 Requirements.
Over 1000 900 cars now on the road
will be replaced this year with shiny
new models. for the new drivers will not
be as numerous as in past seasons.
What to do with the "trade-ins," there
fore. is a major problem at present.
The solution is being put squarely up
IN t<a ntot1 y.h0 &c n
Junk" every car he possibly can.
We've cut our raw material and
production costs to the bone" said the
chief sales executive of one of the lead
ing corporations to gathering OF deal
ers today. You. too. must cut costs
and adopt the quantity output princi-
pie. You will have to take IN something
like 100000 cars in trade. Here is
what We suggest. Give each trade-fn
a careful inspection. If it will cost
money to rebuild 1t and will jeopardize
the sale of new car, sent 1t to the
Junk pile. Your customers will be bet
ter pleased with the new low cost more
efficient and more cheaply operated
cars The plan will lead to greater
production. lower prices and more sales,
with more profits to all Of us in the
industry"
About a million families. this execu-
tive pointed out. will buy cars this
year which never owned them before.
Whether they buy used cars OF high
original cost or new low-priced cars, he
said, depended on the dealers. AS is
natural. this policy has aroused resent
ment among some dealers, but others
believe firmly in the principle and are
carrying 1t out.
Drive for Foreign Trade.
An intensive drive for foreign busi-
ness is now under way. Leaders OF the
industry In Detroit predict that $780,
000.0 worth of American cars will
60 to foreign countries in 1928. Every
where the American car is gaining
popularity In Argentina. where the
tariff on a $1,000 foreign car is about
1855. 95 per cent of the cars sold are
of American make. In Australia, II
per cent Of the cars on the roads arr
American. although the tariff on
81 900 car is $270 Brazil. with a tariff
OF $500 on a $1,000 car. gives o5 per
cent OF her business 10 American manu-
facturers.
The installment purchase plan will be
extended in the foreign field as freely
as at home. Motor manufacturers
without exception defend this type OF
sales policy In 1927. General Motors
sold $850.000,0 900 worth of cars under
such plan. Total sales under The
General Motors acceptance plan since
II was inaugurated nine years ago have
reached 2.553l08 cars