Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-04
DETROIT INDUSTRY
EXPECTS BIG YEAR
Prediction of Heavy Auto
Sales Is Based on Con.
sumption.

DETROIT.-If past experience pro-
videS any criterion, the new models
which several automobile nanufactur-
ers are shortly to introduce will be Of
fered to the public under some of the
most propitious circumstances the in
duStry has ever known, according to
B. H. Cram, president Of Grams Auto
motive Reports, Inc.
The present condition of the auto
motive market is such as to indicate
continuance Of its excellent state dur
ing the first SIX months of the year,
and 1t is on this condition that the in
duStry will find the basis for a slim
illus which will maintain the automo-
bile business at its present prosperous
levels.
Several important influences have
made and are making themselves APP
parent In again putting the industry in
the record-breaking class, and these in
fluences, through continuing to hold
the industry at or close to its present
levels, should pave the way for success
full merchandising of the Midsummer
models.
Market Absorbs Production.
Perhaps the one thing contributing
the most to the industrys prosperity at
ultimate market to absorb the heavy
production which the industry has for
several months maintained. Some of
the reasons for this condition lie in
the industry itself, while others are
more or less objective. However, the
market Is unsatiated because dealers
are in fairly prosperous condition and
have the available capital to carry the
factories output to the consumer, thus
ka Ind 81 70 oHoV i,,
more aggressive manner. In the
second place, competition is entirely
healthy. The size Of the market has
been Sufncient to accommodate the
capacity output of all makes and classes
of cars with an entire absence of that
conflict and clashing which on past &C.
casions has so seriously upset the in
dustry.
There is we'll defined price CLASH
fication Segregating the various parts
of the market, but, fortunately, there
has been no particular development Of
one group to the detriment of others.
One reason for this is the generally
prosperous condition of business as a
whole. The basic industries are we'll
supported and labor is well employed,
with the result that purchasing power
is maintained at unusually high levels.
This high level of purchasing power
the tremendous market for automobiles
1t is doubtful If at any time in the his
tory of the industry there has been
such healthy industrial situation with
manufacturing activity at such highly
sustained and yet basically sound peak.
Certainly there never before was time
when all classes of people were better
able to buy cars than thy have been for
the past six months. This is adequately
AL hy docFifn
the heavy sales volume, repossessions
have never gone above normal figure
and have increased in nowhere near
the ratio that sales and production
have increased.
No Change Feared.
The only conclusion to be drawn
from such survey of conditions is
that there need be no fear of an i'm
mediate or radical change in the cur
rent situation. Barring seasonal ten
denotes, which have already made the
weight of their influence felt, the mar
ket situation is such as to indicate lit
tie change in character. Accordingly,
WIS - present demand for cars well
sustained It IS obvious that any decided
Change can be the result of only a
gradual tapering off which. If it does
make its appearance, will require sew
AS result there is an excellent mar
ket for automobiles founded on sound
economic basis. Reflected by present
activity, it is evident that this market
has not yet been completely satisfied
and leaves the industry still facing q
large, although somewhat indefinite,
market for the remaining months of
the year.
Into this waiting market will I'M
questionably go substantial volume
of business inAthe form Of the new
models of Midsummer introduction.
Not only will these new cars provide
the existing market with new slim
illus, but at the same time they will
benefit from an unusually heavy de.
rnand. with the result that sales and
output should reach figure, possibly
lower than that shown during the first
half year, that should easily carry the
industry through to a new record
in 1929.