Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-01-27
W|LLyS FORESEES
CONTINUED GROWTH
Saturation Point in Car Sales
Looks Like Vanishing
Mark, He Says.

Continued growth of the automobile
industry may be expected for many
years to come, in the opinion of John
N. WHY'S, president of the WillyS-Over-
land Co. and chairman of the foreign
trade committee of the National Auto
mobile Chamber OF Commerce. Numer-
Gus factors, he declared, have combined
to make the nuch-discusSed saturation
point look like a vanishing point at
present. Specifically, the Toledo manu-
facturer cited the discovery that used
cars could be accepted as part payment
on new cars, installment selling, re-
moval Of the excise tax, car-per-person
ownership, and the recent swift expan-
sion Of sales in foreign countries.
cit was all of IS years ago that the
'saturation point began to be regarded
with interest and alarm" said Mr..
WHY'S. Each year at automobile show
time the question OF saturation comes
I'D for discussion. Meanwhile, how
ever, the market has continued to alb
serb more automobiles. The industry
passed the 100000 production mark in
1928, and has an excellent prospect of
reaching 100000 in 1929. Whenever
the mythical Saturation point seems to
be near, some new impetus arrives to
drive it away.
THE first sales Stimulant of impor-
lance was the discovery that used cars
could be accepted by dealers as part
payment on new car, and that a
market existed for the used car. In the
train of this discovery came the DEM
onStration that owners were willing to
trade in their cars, even while the We
hicles still possessed good Transports
ton value, to acquire up-to-date mod
els. This factor has had an extraordl-
nary influence on volume.
Good Roads Great Aid.
"Good roads campaigns formed an
other great aid to the growth of the
automotive industry. Invariably where
good roads are built the sales of motor
cars increase. To date the United
States Government has borne half the
cost of 1000 miles of hard-Surfaced
highways, and the States and counties,
without Federal aid, have constructed
many thousands of miles of additional
good roads. Annual highway appro-
prtations are likely to increase rather
than decrease. for good roads have
proven themselves to be one Of our
most important public benefits.
Development of a workable financing
5 plan for the installment buyer has been
OF s,ntold value in charging the motor
market. Between so and go per cent
Of the cars sold in the United States
are paid for in inStallmentS. I recently
observed that Lord Beaverbrook OF the
London Daily Express is advocating
wider use of the typical American
finance plan in the British Empire.
Viewed in its broadest economic as
poets, installment selling effects real
economy. for with it volume has been
increased so that prices of motor cars
have been reduced to figures that far
offset the comparatively small financing
costs.
THE industry enters 1929 with an
advantage that has not existed for 10
years. I refer to the entire elimination
OF the excise tax on passenger cars.
This Is equivalent to a reduction in
price without loss to the manufacturer,
the dealer, the salesman or the buyer.
In any discussion of the Saturation
point we must not overlook the increas-
ing tendency of families to own two or
more cars. This is a big source of
increasing business, as are feet sales,
particularly to companies who have
large sales forces travelling by motor
car.
Export Sales Expand.
Nov we are entering period Of
large expansion in the vast foreign
markets. Few people realize that in
the year just ended the manufacturers
OF American automobiles exported 10
times as many cars and trucks as they
produced for both domestic and foreign
markets in 1908. American quantity
production methods have given this
country a leadership in the automobile
field that cannot be challenged.
THE responsibilities entailed by this
international leadership, am happy to
say, are being gravely regarded by the
directing heads. of Americas individual
automobile manufacturing companies.
Export departments under competent
men are backed by managing executives
who for the most part make it regu-
lar practice to visit foreign countries.
In the development of foreign trade
the American automobile industry is
conducting itself in a manner that is
winning friends and willing customers
in all parts Of the world. What the
motor industry has done for America
1t can do for Europe, Asia, Africa, South
America, Australasia can CONQUER
deserts, turn the worlds wiIdernesseS
INTO farms, and bring nations to a bet
ter understanding of each other.
In March Herbert Hoover becomes
President OF the United States. He is
Americas first public leader to bring
Into the White House an international
outlook and an extensive international
experience. His South American tour
Is an advance indication of the kind of
sympathetic assistance the Nations ex-
port activities will receive. Directly and
indirectly the worldwide knowledge
possessed by Mr.. Hoover may be ex-
pected to have an impressive and last
Ing influence on the relations between
American industries and the people of
other countries.
With all these active and varied in
/ nuenceS at work, the shadow of the
Saturation point has been pushed back
until 1t appears to be nothing but a
vanishing point