Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-06-29
BY HARDEN CoLFAx.

-, New automobile models will make
their appearance in the shows and show
rooms within the next five weeks. Fac
tories are, at, present heavily engaged
in the preparation Of these models and
the production Of sufacient units to
care for immediate delivery to custo-
merS.
The front ofices Of the automobile
producers are even more buSily engaged
In working out policies for co-operation
with dealers and for the establishment
Of systems for stabilizing the dealer
situation.
Manufacturers have come to realize
that the dealer Is one Of the most es-
Senttal factors in the automobile In
dustry. It Is Of no avail for producers
to turn out cars eff1ciently and cheaply
in mass production If the dealers are
not willing and able to put those cars
into the hands Of consumers and get the
money for them.
The situation Of the automobile dealer
involves business In general to an ex-
traordinary degree, since the industry is
one OF the principal consumers Of steel
rubber, plate glass, nickel. lead and
gasoline. It has capital investment
Of $4,000, o0o. 900. and its direct contact
with the public must be through the
dealer. The success of the dealers re-
acts on the employment Of something
like, 4,500 900 workers.
Some dealers have, been outSpoken In
their dissattsfaction with the policies Of
manutactnrers: A good many dealers
have gone out Of business entirely or
have subordinated their sales activities
TO service and repair work, Despite this
fact, the, position of the dealers has ma
terlally improved since last November.
AT tnat time 1t was estimated the deal
ers had on hand something like 750, 900
cars. These stocks have now been re-
duced to approximately 450, 600. The
situation has shown Improvement not
1niy over last November, but over last
June: One distributor, who handles
about 5000 cars q year, now he's only
so 70 40 per cent Of the total he had
on hand ct this time III 1929.
Instead of making as many cars "a
possible and forcing the dealers to take
them. whether they could sen them i'm.
meoiately or not, the producers ave now
holding production to consumptiye de-
mands or within touch of them. Mann
fActurers are helping the dealers in
every way to estimate consumptiye de-
mana and to avoid stocking up un-
The proposal to Junk many Of the
less ef1cient cars, which were adding
Wamc congestion and irnperilin9
highway safety, has, not gone as FAR AZ
was hoped. IT might, but states and
cities are falling INTO line Ia renIIfrine
that cars IN service shall nnderko -.
animation and meet. REQUIREMENTS Of
emcient operation. Some Inanufacturers
nave set mp, . reserve totalinr approSi-
mateiy SIS, 900, 900 to be USsd n nm.
wot,ng the 1unking Of rsmshackIe cars.
M 2 result the, Replacement reuuire-
ments for. 1880 arr. nov estimated &c
close 70 $500, 900 cars. since the total
neW-car output Is not expected to ex-
ceed $500, 600 cars. this leaves but
1sQQ0.O 600 new customers to Be found Il,
order to absorb the entire output.
= tss.. + X 4
50 closely are the manufacturers
keeping track Of consumptive demand
that many ask their dealers and aRents
70 report to them every 10 DAYS as to
cars on hand and the prospect of their
disposal. The dealers are, finding con-
siderable assistance In handling the
subsidiary products now being turned
Dub BY many motor car COMPANIES "A
number are engaged IN the flanufacture
Of airplanes and airpIane engines, which
are being sold through automobile
The number 81 aiEplanes ana aircraft
engines sold In the fifst part Of this
year showed 3 decided inward trend
after b weak start In January and Feh-