Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-01-27
BIG BUSINESS SEEN
FOR AUTO INDUSTRY
Unparalleled Prosperity in
1929 Predicted-Producing
and Buying Power at Peak.

UnDaTalIcleQ pIOSpCAA0y SSSAA"
in store for the automobile industry III
1000 according to w. S. Knudsen,
president of the Chevrolet Co, who
saws. There is no sign on the IN
dustrial horizon that would indicate
snvthine but excellent business through
ont the wear. On the other hand, we
have many reasons to support the
oninion that we may look forward 10
a record automobile year.
sIf all the present indexes OF pros
neritv remain favorable throughout the
wear, as expect they will, the auto
mobile industry should build and sell
more than 5,25o,000 units in 1879.
tentative production schedules set oy
the larger producers, the sound eco
nomic condition Of the country, more
automobile per dollar than ever ano
the sound management under WHICH
all companies are now operating are
factors that cause us TO feel connoent
that new all-time production ana SAFES
records will be established this year.
"The outlook for business generally
Is happy one, in view of the growing
practice of taking the automobile busl-
ness as a barometer of the activity ex-
pected In all lines of trade. And IN
this connection there is little question
that the excellent prospects ahead OF
the automobile industry for the year
should influence general business In
very favorable way. Activity In one
line inspires activity in another, re-
sulting in a benefit to both.
although it will probably not be
required to play the role, the auto
mobile business, according to plans al
ready settled on, should serve as a
generator to general business IN 1929.
It promises to be the trail-blazer to
new levels Of prosperity.
Employment High.
1--WE are entering 1929 with employ
ment high and in fine shape. This IS
a basic note in the optimistic outlook
before us. Because of this condition
we are assured of a high producing
and buying power to insure at the
outset a regular flow of useful materials
through the channels Of trade-which,
after all, is the best definition OF
prosperity.
Manufacturing establishments gen
orally throughout the country are
working full time and basic industries
are operating at IS per cent capacity
or better.
zone Of the foremost reasons for
the expected gain in automobile bust
ness this year is the record-breaking
dollar value that Is offered in the 1929
automobiles, especially those IN the
lower price ranges.
Despite the progress manufacturers
have been making every year in Of
fering more automobile per dollar, in
no preceding year has the industry
taken as great forward step in this
direction. Never before has so much
automobile per dollar been offered to
the motoring public.
"Volume production, better manage
ment and more intelligent sales direc-
ton have been the chief contributors
to this higher dollar value found In
the latest models.
"The popularity that attached itself
to the automobile almost Immediately
on its inception, making necessary
rapid increases in production, has made
it possible for this comparatively In
FAINT industry to become a giant IN a
few years and repay the motering pub
lie lavishly for immediate support In
its earlier years.
Lines Out Early.
zone of the most pertinent factors
in the excellent outlook for the in
dustry Is the fact that several Of the
leading producers have announced their
1929 lines earlier than ever, the result
of which should have been the accumu-
lation of q heavy backlog of orders by
the time the plants are In full produc-
ton and deliveries going forward.
Linked with this was the unusual pub
lie interest displayed at these early
Showingy.
Record breaking crowds were at
tracted to the early exhibitions OF the
1929 lines, with sales officials report
ing great enthusiasm on the part Of
the visitors.
Marked advances in the style and
performance Of the new cars should in
fluence thousands of present owners to
take an early advantage Of the i'm
proved offerings.
MANY Of these people will either
turn in their present machines before
all the transportation value has been
taken out of them or join the grow
ing legion of multiple car owners.
Another salient feature Of the ex-
cellent outlook Is the stature of the re-
placement market. In view OF the fact
that the life Of the average automo-
bile is given as approximately six years,
the 1929 replacement market should be
care Of a large part of the 1900, 900
cars produced In 1923.
I'VE may look forward also to a
measurable gain in export business The
American-built automobile is fast meet
ing with the exacting standard of the
foreign market from the Standpoints
Of economy in operation, low main
tenance costs, size and appearance.
THE use of the automobile for COM
mercial purposes is growing in favor
with business institutions, and I an
sure that we may confidently expect
measurable gains in this direction
Tremendous development is in store fol
the bus business. The field which the
bus is serving is expanding perhaps
more rapidly than that of any other
arm Of transportation, and as a result
marked expansion in bus manufactur.
ing seems certain"