Evening star., 1929-12-15
Profits Hinge on Volume.


Profits Hinge on Volume.
The modern economic law of manu-
featuring, although 1t Is unWr1tten, calls
for strict adherence to cost calculation,
competition being so intense that prof1ts
not only have to be built up by every
possible economy on the one hand, but
they depend almost solely on volume
and quantity output on the other.
If output expands there Is chance
for price reduction. If 1t recedes, the
cost of manufacturing thereby Is in
creased. Less volume means added ex-
pense OF production, for which the pub
lie has to pay.
Facing q new year In which the indi-
cations point to lessened output Of cars
from the extreme level of 1929, the
makers have been figuring things out
and the boosts In the price lists are the
result. They calculate that production
will have to be held either within or
below the limits Of the last IL months,
therefore the list prices will have to go
back to the basis Of 1929 estimates for
1929.
Alvan Macauley, head Of the National
Automobile Chamber of Commerce and
president of the Packard Motor Car Co.,
In stating the position Of the automobile
industry to President Hoover q week
ago, intimated that 100000 cars are
ample for any normal year. Other off,
ctal estimates for next year have been
based on @ replacement demand of
100000 units for the United States, in
which 25,000,000 cars are now on the
roads, and export requirements Of
100000 cars for foreign countries
Basic demand for 100000 cars there
fore appears to be reasonable mini
mum and to assure production on a
scale that in other years has been sum-
cient to keep factory workers busy for
the greater part Of IL months.
Introduce 16-CyIinder Model.
The Cadillac Co. has let it be known
that the new 16-cylinder model will be
introduced at the National Automobile
Show in New York on January 4. The
new car Is to be known as the 'V-16."
Announcements say that the power
plant, coloring, fittings and upholstery
are to be designed to fit the individual
requirements Of those who can afford
to buy cars In the top price class and
that the models virtually will be custom
built.
The week has been productive Of sew
eral pre-views of new models that the
public will see at the first of the year.
Marmon at Indianapolis gave an ad-
vance showing of four lines Of eights
that will constitute its 1880 line. Two
other companies have made private
showings Of brand-new 8-cylinder mod
els, details of which are being held back
until January.
One Of these is a V-type eight that
will be offered in the moderate price
class. 1t has been produced by one OF
the largest makers, whose output up to
now has been confined to 6-cylinder
cars.
A statement of the factory officials
points out that only relatively few of
the more costly makes of cars until now
have been powered with V-type engines
THE designers of this new V-type
car have developed new features that
enable them to build not only V-type
eight at a moderate price, but also the
first one of this type that will be built
and sold on the same basis of manu-
featuring costs as the 'in-line" types.
Develops Great Horsepower.
''The new v medium wheel base an6
medium weight develops ! horsepower
' for every 81 pounds of car Weight-a
! power ratio said to excel that of any
other American car.
| High compression and a new cylin-
der-head design are responsible for large
| power output. Gasoline consumption is
said to be about equal to that of the
average 6-cylinder car"
The new car is said to be capable Of
so miles an hour without effort and to
have reserve power for a maximum o.
| rs to S5 miles an hour The design is
said to represent three years of develop-
ment work, during which IL different
V-type engines were built and tested.
(Copyrisht, 1929, North American Newspaper
AllianceD