Evening star., 1930-10-30
AUTO PRODUCTION ;
.GEARED TO DEMAND
Industry Has Readiusted It.
self to Changed Conditions.
Upturn Seen.
BY DAVID J. WILKIE,
Associated Press stan Writer.

DETROIT. October 30.-The correc-
tive factors adopted nearly q year ago
to direct the automobile industry out
of period of virtual stagnation
threatened by the overproduction OF
1929 seemingly have reached the high
point of efficiency today. This is
shown by sales and production figures
of the leading motor car manufac-
turers.
A year ago production was so far
ahead of sales-and had been for sew
eral monthS-that by the end of 1929
the industry had piled up surplus of
approximately 100000 vehicles all of
which had to be added to inventories
OF 1890. Today as the result of the
corrective steps taken by the industry.
1t may be said there is virtually no sur
plus, and while production during 1880
has been under rigid control, final fig-
ureS on the years output are expected
to reach close to 100000 units.
Leading authorities in the industry
have estimated a normal and constant
demand for approximately 100000
American made motor cars annually
This figure has been arrived at, they
assert by the most thorough analyses
and takes into consideration a normal
world replacement demand of approx
imately 100000 vehicles annually. BY
constant demand 1t is explained that
over a given period of years demand
Will show a yearly average of 4,500,00
units. Admitting that the year 1880
will not show that many motor cars
purchased. the industry's sales execu-
ttves assert that by all precedent the
ensuing year or two years should see
demand for the normal volume plus
the slack of 1880.
1t has been the history of the auto
mobile industry that every lean year
has been followed by an extended
period OF close to maximum activity.
Considering every factor of the 1880
depression and that SO far as the auto
mobile industry is concerned 1t has ap-
proximately paralleled in length most
of the previous lean years many auto
mobile executives believe optimistic
forecasts concerning 1881 reasonably
justified.
The leveling off of production to de-
mand, maintaining skeleton organiZa-
tions in departments that have been
more or less unproductive during the
II only on part time: meeting the sales
organization problem created by no little
dealer mortality" and at the same
time trying to forestall threat at the
export phase of the industry are but
few of the worries brought to the
motor car manufacturer this year.
That the industry has been able 70
meet and solve all these difficulties with
no mortality" among the manufacturers
testifies, its leaders say, to how finan-
cially sound the automobile industry
actually Il.
The automobile industry generally is
looking forward to the National auto
mobile shows in January as the time
when a sharp upward turn in demand
will come. Although the January ex-
positions will introduce new models
mainly in the lower priced lines, it Is
in these lines that a major part of the
industry's business is done, and sales
executives believe many potential buy
ers are awaiting the national exhibi-
tions before placing orders.
One Of the interesting items Of In
formation brought back from the Euro
pean automobile shows by visiting
American automotive engineers is the
statement that the main objective this
year appeared to be an appeal TO the
average motorist through price reduc-
tions and improved performance and
appearance rather than to the buyer
of expensive luxury cars One of the
cars not in the average motorist"
class was a 12-cylinder model with q
six-speed gear shift in which the gear
shifting is done by vacuum motor
driven off the transmission. Buttons on
the steering wheel operate the gears.