Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-02
SWEEP PLANNED
BY AUTO INDUSTRY
Reimbursement Period Coming
on Like That of Ten
Years Ago.
Special Dispatch to The Star.

NRS~AS4 OioRdbCh 70 Inc StaTs
DETROIT, Mich, March 1.-The au-
tomobile industry is inauguratlng an In
tensive Spring housekeeping period.
1t is one in which not only the distrib-
utors and dealers are participating, but
also the manufacturers. Those famil-
lar with the general plans say that the
cleanup will be drastic-more so even
than in 1921.
1t was in 1920 and 1921 that the au-
tomobne trade experienced its last re-
adjustment period. It was brought
about by def1ation following the post
war boom. That was the first time
tLat the automobile magnates found
that mistaken Judgment and miscalcu-
lation had led them into overproduc-
ton. The consequence was that prices
had to be reduced to restore equilibrium
The situation today is in contrast to
that of 10 years ago. The number of
companies building cars and marketing
them nationally has declined more than
one-third, but those remaining in the
field have f1ourished until their volume
and profits are computed in millions as
compared with the tens or hundreds of
thousands of decade ago.
Budgeting of Production.
Today finds production budgeted ac-
cording to requirements as determined
by surveys that sales departments
make, but still dependent upon mer-
chandising judgment, into which the
human factor, and therefore uncer-
tainty, sometimes enters. It is this
process Of thought that has led heads
of the industry to decide that there are
too many Junk" cars in daily use: that
such cars are not only menace to pub
lie safety on the highways, but also a
drawback, because thoughtless dealers
and owners still regard them as worth
trading in.
This is one of the reasons why excessive
stocks Of used cars constitute a burden
on the trade and why concerted effort
is being made to rid the business Of the
double incubus.
That stocks of used cars the country
over must be reduced has been one of
the main points of agreement among
motor car executives, who have con-
coded that controlled output should be
the order of procedure for 1880.
Junking Methods Changed.
The junking plan, therefore, is being
supplemented by concerted effort to
clear of large accumulations of second
hand cars by methods different from
the practice in other seasons.
In the 1929 for the first time the
sales departments of several companies
executives intrusted with the job of
watching dealer stocks. While business
was at the peak little action was taken.
With the letdown, however, the used
car divisions have become active.
The result is apparent in used car
offerings de luxe" sponsored and in
dorsed by factory branches For sew
eral weeks to come there will be sue
cesSion of them demonstrating high
value at prices that will force atten-
ton, because they are the lowest at
which such cars have ever been offered.
The changing viewpoint of the COM
pany executives on the status Of the
used car is reflected in opinions voiced
recently.
Charles w. Nash of Nash Motors has
pointed out that used car buying is no
longer beset with the element of chance.
The driving public today is in the habit
OF turning in its cars frequently as au-
tomoblle Improvements are made by the
manufacturers. The great majority of
turn-ins are in excellent condition, with
years of service remaining in them In
addition, thorough reconditioning brings
them to high standard.
Much for Money.
II Is now possible" Mr.. Nash says,
''to buy and own a large car with high
power, excellent lines and a motor
which, to all intents and purposes, is
new for a nominal figure as compared
to its original purchase price"
According to Emerson j. Poag, sales
executive of the Buick Motor Co. the
numerous Improvements in perform
ance, riding comfort and appearance
nave made the used car of today an
entirely different commodity from the
car which went under that name a
comparatively short time ago.
The fact that the car which leaves
the factory today is a vastly improved
product over its predecessors is the
greatest single factor in the rising pop-
uiarlty OF the used car" Mr.. PoaR adds
There Is growing tendency on the
part OF the motoring public to buy used
cars with confidence The industry's
eHort to build better is steadily in
creaslng the amount of dependable
transportation in each car"
A. l. Philip, chairman of the board of
directors of Durant Motors. saws the
subject of further cooperation on the
used car question has been discussed
frequently In the sessions of the Ma
tlonal Automobile Chamber of Conn
merce. In justice to the automobile
dealer and the public, he believes. the
time has come when action should be
taken
Dealer and public alike must be pro-
tected against the so-caIled 'gyp,' and
one way OF doing it is by selling the
pubic the fact that the legitimate au-
tomobhe dealer is in an infinitely bet
yer position than the 'gyp' to sell good
merchandise
Copyright, 1880. by North American News
paper Alliance.l
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