Evening star., 1928-02-05
80 PER CENT OF AUTOMOBILES
IN USE MADE BY AMERICANS
22.137,OO0 Cars of q. $4,000 Throue hout
World in 1927 We're y. S. Productions.
New Foreign Market Seen.

consultations, and the German manu-
Facturer has been further assisted by a
considerable increase in import duties
on American and other foreign makes
last year. For the American product
the German market still remains un-
settled
Great Britain's tariff on automobiles
and the campaign OF British makes for
British markets has apparently only af-
fected the importation OF trucks. which
last year was almost negligible. On the
other hand. the British demand for
foreign passenger cars continues at an
increased rate. For the entire year
1926 there were 3.647 cars imported. but
during II months of 1927 the number
had increased 10 i5907 The great ma
jority OF these represent the low-priced
type ranging from $500 to $500.
The European automobile demand is
necessarily limited because of the aver
age low purchasing power. For ex-
ample. three popular low-priced types
OF American cars. costing $500. $500
and 81 900. might cost from $4,000 10
$50 francs in France. On this basis
the lowest priced car represents the
salary. for two or three months Of the
average worker in America. but in
France it represents the earnings OF the
average worker for period of Il
months or more. In addition. in El-
rope few wholesale and retail facilities
have yet been provided for the han
ding OF sales on an installment pur-
chasing plan. and the financing OF in
stallment credit Is practiced TO only
a limited extent.
Cheaper Car Predominates.
The Importance of this price factor
Is indicated by the type of American
car sold abroad. In the first Il!
months OF 1927, % per cent Of the
exports represented cars OF $500 or less
IN price. 624 per cent represented cars
from $500 To 81 zoo. ll3 per cent from
81 200 70 1000. and 33 per cent cars
over So 900.
In every market the United States
sells more automobiles than any other
foreign country. It's leadership as a
world producer Is established on the
basis OF better organization, standard
ization OF product and quantity of pro-
duction. The American manufacturer
producing an average OF 500 cars daily
starts with distinct advantage over
the foreign manufacturer with an out
R&S va Ad6S ~ AaN
Even the imposition by foreign coun.
tries Of heavier import duties has not
prevented these American sales abroad
and with further price cuts announced
this month in this country these Amer
lean exports should be stimulated. Rec.
ognizing the growing Importance OF this
export trade, many American producers
have established their own assembly
plants abroad, notably III Europe anc
Latin America. Foreign assemblies oi
American cars increased about - pc,
cent In the first 10 months Of 1927 a'
compared with the same period I'm 1926
BY this manner tariff duties are avoided
or reduced and shipments facilitated.
Although amounting 10 only IL PEI
cent OF our total production, the eXpor,
trade Is one Of the many interesting
factors which will determine the cours,
Of the American automobile industry II
the coming months. With the rapid de
veloplnent Of highways both In Europ,
and South America. the use Of the an,
| tomobile Is certain TO Increase A large
part Of this demand Will be supplrc
by the American manufactures. and &
Is significant that already In Soutf
America our cars amount 10 about 9C
per cent OF the total In operation Asia
has an equally large proportion o
American cars, and when that cont,
nent begins TO buy In quantity It's IA
miliarity with the American automohil,
| viii give the American industry a CON
| siderable advantage.