Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-23
AUTOMOBILE TRADE
PROTECTS DEALERS
Manufacturers Are Watching
Particularly Agents in
Small Towns.
BY DAVID J. WILKIE,
Associated Press stan Writer.

DETROIT, october 23.-Just as the
automobile industry's executives are
bending their efforts to keep intact
their production stats with skeleton
organizations, SO, too, are they endeav-
oring to maintain at the most efhcient
level the dealer organizations through
which their product reaches the ulti-
mate consumer.
Dealer mortality" always more or
less evident in times of stress, has been
one of the effects of the depression of
1880 that caused no little concern to
many automobile manufacturing COM
panieS. Aside from numerous instances
where dealers have been forced by lack
of sales to discontinue their agencies,
there have been instances where deal
ers of long established reputation have
taken on additional lines or have sur
rendered their franchises in one make
Of cars to take UP a different one.
Effect in Small Towns.
The problem thus created is not as
serious in the large centers and close
to the factory, but in smaller commu-
mites and at points distant from the
production centers it presents a diff
Guilty that aggravateS in no small meas
ure the major worries beSetting the au-
tomobile executive at the moment. In
the smaller communities dealer NOR
the manufacturer of a certain line of
automobiles is, temporarily at least,
without representation in that field.
Many departments of the Ford Motor
Co. parent plant in the River Rouge
district are operating three days a
week. The three-day-week schedule,
company officials explained, was adopt
men employed. From 10000 to 10000
men are on the pay roll at present,
most of them working three days a
week, but q large number employed
i've days.
To rumors that the Ford Co. is plan
ming another new model, or change
in the present car, it was said definitely
that no such plans are in contempla-
ton, and that the present model will
be shown at the Detroit AutomoDile
Show next January.
That the depression has reached a
purely psychological level Is the
opinion of H. M. Stephens, Western
sales manager for the Oakland Motor
Car Co. 1.-THE influence of the press,
he said, twas largely instrumental in
arresting the decline and we must look
opinion out of its present pessimistic,
n1uddled state to one of confidence In
the future"
CauScS OL OCpECSSAOhs
DISCUSSING the causes Of the depres-
sion, Mr.. stephens said:
"The responsibility for the present
economic depression cannot be laid
alone to security speculation. Hlgn
pressure and unsound selling methods
by a number of industries IN which the
automobile industry is no exception
brought about condition commonly
called consumer overindulgence.
'The dealer organizations had been
high-pressured and were affected by
boom conditions just as were the manu-
facturers. Dealers had INDUCED In
boom-time extravaganza and had de-
parted from sound business methods
In 4 nutshell, we were trying to gear
sales up to productive capacity, and you
know the answer. It worked for time,
but failed because it was fundamentally
unsound.
"But already the remedy is being APP
piled. Production is being sanely geared
to sales. Dealers are receiving un-
limited factory guidance, the factories
are sharing responsibility for the used
car problem and dealer profits are being
safeRuarded."
One of the latest devices in the me-
chanical field developed by the auto
mobile industry is a new pneumatic hy-
draulic-fed special drilling machine. In
appearance it bears marked resemblance
to q. huge airplane motor. Six drilling
and cutting operations are performed
simultaneously.