Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-01-27
WORLD CAR NEEDS
OPEN NEW MARKET
High Speed Efficiency of U. S.
Manufacturers Wins
Foreign Trade.

People the world over need motor
cars. If there ever was any doubt
about this, such doubt can no longer
exist in the mind Of any one who has
observed the extent Of the development
of motor car usage in all countries OF
the world in the past few years, &C
cording to Howard S. WEIGH, export
sales manager of the Studebaker Cor
poration.
It has not been more than six years
since the use of automobiles abroad
was very restricted--in fact, almost
limited to the metropolitan centers and
great capitals of the world The 10
years that have passed since the armi-
stice have wrought great change in
motor car usage in countries outside
the United States and Canada. Quick
to recuperate from the effects of the
war, European countries in particular
have improved their economic status to
such an extent that the buying power
per capita has been increased to a
point where more necessities can be af-
forded. and consequently the market
has expanded rapidly.
Auto Ranks as Necessity.
When people are in a position to
purchase commodities the automobile
is among the first necessities that come
in for consideration. This is a rule
that was proved in the United States
quite a number of years ago, and
during the past two or three years has
been proved again in most other coun-
tries of the world.
The American axiom, thine is money"
Is now understood in many countries of
thu f11iC viz &c I1nrr10nra
more true than when applied to trans
portation To ride is to save time, and
to save time is to save money. 1t is
not difficult to understand this.
American motor car manufacturers
have been quick to perceive the wisdom
of making their automobiles available
in the world markets. This does not
mean the mere offering of their cars
for sale in these markets, since there is
more involved in the intensive diStribu-
ton of a product than merely quoting
it and offering it to importers.
Exporting manufacturers of motor
cars were faced with the necessity of
laying down their automobiles at CEN
trail points abroad where they could be
quickly distributed in small lots and
sent out into the small communities for
display and sale, the same as was here
tofore done in the capitals. This meant
carrying stocks of cars abroad at
strategic points, frequently in free har-
borS, where they could be reshipped in
small or large numbers by rail and boat
to the surrounding territories.
Americans Sent Abroad.
In order properly to look after such
a kind OF distribution it was necessary
to send out fair-sized armies of men
from the United States, and this per-
sonnet was supplemented by other per-
sonnet employed locally. Next came the
problem of advertising and selling and,
nnally, and just as important as any,
thing else, the problem of financing the
wholesale and retail sale of the cars
and parts carried in stock.
1naSmuch as banking and other fl
nanclng institutions abroad had not de-
veloped extensive and workable plans
of financing automobiles, it was found
necessary for finance companies of
American capitalization and organiza-
ton to extend their operations into the
overseas markets. These facilities sup
Piled the force to drive home the wedge
that finally opened up the big market
abroad for American automobiles, which
had been gaining strength from year
to year and progressing with cumulative
force.
Viewed as whole, the business now
presents a picture of a great industry
starting at various points throughout
the United States where motor units
and complete motor cars are built and
assembled from raw materials, shipped
abroad, carried in stock, sold and dis
tributed through highly specialized mer-
chandising organizations, and financed
very largely through the distributor
and dealer to the final purchaser by
American capital.
Such an organization from its very
nature must be a high-speed machine
and one of great force. The capital it
represents demands that it must func-
ton continuously and efficiently,