Evening star., 1929-12-15
LISTS 4,335,ODO
IN AUTO INDUSTRY
AIvan MacauIey Puts 1923
Value of Cars and Trucks
at $3,163,OO0, 900.

The following address concerning
business prospects in the automotive in
dustry was made recently by Alvan
| Macauley, president of the National Au-
| tomobile Chamber of Commerce:
1.-The automobile and motor vehicle
| industry employs directly 100000
workers and indirectly gives employ
ment to $4,000 others. The prosperity
of the industry is therefore of vital
Importance to total of 4,335,00O
workers.
I'm 1928 the value Of cars and trucks
was So, ,163, ,000, 900, and with exports of
vehicles, parts and tires exceeding $578,-
100000. These figures will be exceeded
this year, with the added important
news that for the first time since the
Civil War, cotton takes second place
as the most valuable of our exports, the
latest figures showing that American
motor products exported exceeded in
value that of any other item.
THE figures we have just stated are
of the employment in normal times.
The number today, of course, is some
what reduced, partly because OF sea-
sonal conditions.
1T is too soon after the recent stock
market readjustment to enable us to
say with any. accuracy to what extent
employment in our industry has been
affected.
In HealthfuI Condition.
eve anticipate, however, that we
shall find when the returns are In
that our industry has been affected
more or less in line with general buS1-
ness throughout the United States.
"One of the largest companies re-
ports business as just per cent from
! normal for this season of the year.
| Taken generally the industry Is IN a
| most wholesome and healthful condi-
| ton. Inventories are not excessive,
thanks to a system Of short time in
! ventory control which is general
throughout the industry. Wages are
high: , l..
maintaining wages and this it has been
able to do through the perfection OF
| its manufacturing equipment, which,
compared with the old days, enables
ole workman to accomplish the results
! of several.
whether wages can be expected to
| continue to advance as In the past
will depend upon economic conditions.
There has been no suggestion that they
are too high or that they should be
reduced.
"The leaders of the industry are
| watchful, but are not concerned over the
outcome.
"The history of the industry, going
back a quarter of a century and in
Guiding the panic of 1907, shows that
| it Is among the first, if not the very
| first, to respond to the oncoming of
more prosperous business conditions.
| "Time and again 1t has seemed to
respond to the fluctuations of general
| business, but always it has been among
| the first to come back and to begin
| to climb to new records of prosperity.
"There are excellent reasons to be-
! lieve that it will continue to be true
to tradition in this respect.
There are 25,000,000 of motor We
hicleS in use in the United States and
| the known demand for replacement out
of this great backlog is 2,750,000 cars
per annum.
although production this year will
be 100000, we estimate that in a
normal year we produce 100000 motor
vehicles. The replacement demand
| therefore gives us automatically SIS per
cent of normal years business.
"The export trade, unaffected by stock
| market conditions will this year be
approximately 1000 900 vehicles, which
! is 100000 greater than the year be-
fore.
ut seems conservative, therefore, to
expect an export business Of upwards
of 100000 units next year, also, which
is 20 per cent of our normal years
production.
New Buyers Must Be Added.
export, added to our replacement
expectation, gives us business of g.
| 75O,O cars and trucks, which is rs
per cent of a normal years business.
To this must be added new buyers, two
car families, and rapidly increasing
truck and bus business, that should
bring the total to 100000.
"The selling of automobiles on time
naymentS has shown itself to be a
constructive practice and a real ally
to the prosperity of the industry. It
can be expected to continue its work
of keeping people employed and en-
couraging a healthy consumption of
product. Cancellations and failures to
meet payments have been so small as to
be almost negligible.
1.-THE continued expansion of the
road building program which doubtless
will be increased in 1880 over the one
billion six hundred million dollar ex-
penditure of this year, with its posi-
tive influence on employment, will af-
feet the motor industry most favorably
as we'll as many others.
"The country at large need not worry
about the motor vehicle industry. We
!, shall doubtless share to some extent
! any difficulties that may beset the
country, but we will never be dowr
seriously or for long"