Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-28
AUTO PRODUCTION
REVEALS INCREASE
Two Manufacturers Back on
Full Time BaSiS-DeaIerS'
Trade improves.
BY ]. C. ROYLE.

Special Dispatch to The Star.
NEW YORK, December 2S-The two
leading manufacturers of quantity pro-
duction automobiles are back on a
full-time basis. Dispatches from De-
troit today indicate that the period of
hesitancy has passed for some pro-
ducers. Others still are working on
4-day week schedule, but soon expect
to be back on regular fulI-time basis.
The Ohio and Pennsylvania auto sheet
mills are rejecting the improvement,
but some automobile centerS other than
Detroit are still restricting production.
Manufacturers have been hesitating
because they had to steer between Two
dangers. One was the possibility of
overlooking already burdened dealers.
The other was the fear that if demand
developed quickly after the annual
shows. as it has had a habit of doing,
they might not have sufficient cars on
hand to make deliveries.
Used-Car Sales.
Meantime, dealers are not doing badly.
They are finding the used-car situation
help. One large distributor explained
today that when used cars are bought
by the dealer on proper basis, they
provide an invaluable adjunct to a slow
new-car demand. Whether the public
is buying new cars or not, the dealers
overhead expenses go on just the same.
The uSed-car business at such times
gives the dealer volume and aids in
keeping sales forces effective and in
reducing costs. The result in the case
Of the big distributors is hourly sales"
instead of daily or weekly sales
Another advantage is that it permits
the dealer to enter price fields which
his agency contracts otherwise would
keep closed to him. For example, a
lie fr,. = d,
$500 class can by judicious handling
Of used cars attract possible customers
from the fields ranging from $4,000 to
$1,000.
There is no question but that manu-
fecturerS are going to nurse dealers
along more carefully than in the past.
Yet 1t is noticeable fact that the most
prosperous manufacturers are those
who have refrained from burdening the
dealer with excess stocks One leading
company makes practice of an
nouncing more emphatically sales to
ultimate consumers by dealers than
sales OF the manufacturer to dealers.
AS result it is possible to see at a
glance Just what stocks are in the
nanoS OF dealers at any date. In Oc-
tober the maker sold 10000 cars less to
dealers than dealers sold to consumers
In November they sold dealers 10000
cars less than the latter placed In the
hands of customers. Consequently. the
dealers are not overburdened. They are
unrestricted.
Aircraft Industry.
There have been reports of confer
enceS between leading manufacturers to
discuss the dealer situation. but such
reports are discredited by the com
panies themselves. Each is working ont.
the problem in its own way. None
desires to have dealers fail. Such fall
ures injure the prestige of the manu-
facturer
Moreover, many automobile concerns
nave gone into the manufacture OF air
planes, or contemplate doing so. The
automobile dealer, according to Gov
eminent ofdcialS and Statisticians.
makes the ideal agent for airplanes. and
retail outlets are what the aviation In
dustry needs most at the moment.
Aircraft manufacturers are finding
their sales methods ineffective The
planes, they have found. must be put
on display, and automobile dealers have
adequate space to exhibit the planes
All the dealers need, Department of
Commerce offlcials assert, is one special
salesman who can ny and knows the
equipment.
IT. is proposed that auto dealers who
50 into the sirplane selling business
should keep one or two planes on dis
play and the remainder Of their stocks
at nearby airports.