Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-01-27
PROSPECTS BRIGHT
FOR AUTO MAKERS
Strong Predicts Successful
Year, With Reflected Pros
perity for Nation.

The, automotive industry as much as
any other, truthfully mirrors conditions
throughout the country, according to
E. T. Strong, president of the Buick
Motor Co.
The automotive industry faces one OF
the brightest eras in its history this
year, he said, adding, lit is apparent
that the entire country stands on the
threshold of a year that bids fair to
equal, If not surpaSs, any similar period
in the last decade"
The automotive industry, employing
directly and indirectly 4110,000 in the
United States, makes approximately
100000 personS-about one-sixth OF
the total opulation-dependent on it
for their livelihood.
Business throughout the Nation is
sound, Mr.. Strong. declares, adding, all
lines OF industry are running smoothly:
conditions in the vast agricultural areas
are good and with the automobile in
dustry running to capacity, prosperity
must result.
Savings Reflect Prosperity.
I'm few ways is the general pros
perity of the Nation more clearly
shown than the billions of dollars in
vested by the United. States citizens in
stocks and bonds in the last year and
the additional billions invested in au-
tomobiles," he asserted.
This has been made possible to a
large extent by the huge increase in the
national income, which mas jumped
from $60,000,000, 1000 in 1920 to $780,
000,000,000 in 1928. That the people
of the United States are saving more
and more further is shown in the fact
that, despite the enormous sums in
vested, they total but small part Of
the $40,000,000. increased income.
THE huge growth of savings in the
last 10 years, or during the So-called
motor age,' is a big item
in 1917 American Bankers AsSocia-
ton figures show savings deposits in
the country amounted to 0,875, 602, 900
and building and loan association as
sets totaled $1,769, 142,175. That year
the wholesale value of motor vehicles
was $1,274, 488.449. Eleven years later,
with motor vehicles valued at approx
mately $3,000,0O0,000, savings deposits
had reached total of $4,000, 902, 900
and building and loan association as
sets had climbed to $4,000 100000.
Installment Buying Decreased.
''That the average American family
now has more to spend on the motor
car is revealed in figures of the National
Automobile Chamber of Commerce,
which show that the percentage of new
cars sold on installment payments in
this country decreased from rs per cent
OF the total in 1925 to 58.1 per cent in
1928, and the percentage of used cars
sold on deferred payments over the
same period decreased from 62.8 to
608 per cent.
1.-THE outlook for the automotive in
duStry is affected favOrably too. by
the progress in construction of good
roads throughout the Nation; by the
generally excellent crop conditions Of
the past season and the prospect Of
another year of good yield in 1929, as
well as bv the removal of the Govern
ment excise tax on motor cars.
Our own confidence in substantial
upon market analyses, which show the
existence of sound conditions.
Another factor that indicates ban
ner year in the industry in 1929 is
the broadened scope of the market,
particularly the ever-increasing re-
placement demand, which has jumped
from less than 100000 in 1917 to about
100000 in 1927, and which will show
a further increase for 1928 and in the
coming year.
Then there is the big growth in
two and three car families which now
has reached total of more than $780,
900 in the United States, and which
steadily is increasing as realization of
the necessity for moro than one car in
a family becomes NOR apparent.
Still another factor in increasing
sales is the huge growth of the foreign
market, which has pushed ahead Unit
ed States exports of automobiles from
38, 430 in 1921 to approximately 534,-
642 in 1928.
tits far cry from the mining of
tin and lead and the manufacture of
plate glass to the final assembly lines
of the modern automobile plant, yet
% per cent Of the tin and 1877 per
cent of the lead mined in this country
and So per cent of the plate glass
produced are used in the manufacture
Of motor cars.
1.-The steel industry, ranking third in
the United States, gives IS per cent
of its men and product to the build
ing of automobiles; IS per cent of the
work in the gigantic rubber concerns
of the country is traceable directly to
the demands of the automobile in
dustry; gasoline and oil, taken from
the earth in the oil producing regions
of the country, are absorbed in VOL
-Nme of more than 80 per cent by the
uluQSIIyy lIlC 1CdOA1CA~ Io1lklAkA6 nIQQoUAy
pays more than go per cent of its en-
ployes with automobile manufacturers
checks, and lumber, cloth, aluminium,
copper, zinc, nickel, paint and lacquer,
hair and padding all are used in vary
ing amounts in the production Of auto
mobiles.
1.-The importance of the automotive
industry to the railroads Of the United
States is evidenced by the fact that
3,267, 1888 carloads Of shipments in 1927
and even more in 1928 can be traced
definitely to the manufacture and use
of automobiles, in addition to which
there we're countless carloads Of road
building machinery, materials and
equipment used in automobile factory
and branch construction and mainte-
nance, garages, fuel oil, ores and extern
Sive less-than- carload freight and ex-
press shipments of accessories and re-
pair parts"