Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-20
AUTO TRADE SEES
!. BETTER PROSPECT
Industry Expects Stimulation
in Sales on Introduction
of New Models.
BY DAVID ]. WILKIE.
written for the Associated Press)

written 1Of the Associated FTeSS.j
DETROIT. November 2O-The un-
dercurrent of optimism that has taken
possession of the automobile industry
during the last few weeks continues to
grow as the production programs for
1882 get actively under way. Through
out the industry talk centerS on the
new cars and the part they will play
in the complete restoration of pros
perity.
The faith of the motor car industry
in the ultimate restoration OF normal
business conditions has been strikingly
demonstrated in the expenditure Of
millions of dollars for the retooling OF
plants in preparation for new car pro-
auction. 1t expects to spend still more
money in advertising campaigns and
promotion work designed to bring the
new models definitely before potential
buyers.
New Models Awaited.
Following Buick, which brought out
the first of the new models under the
plan OF the industry to introduce them
during the latter months of the year,
at least one other volume producer is
expected TO present new mo5el before
the end of the current month. Early
December is expected to see the great
est number of the new car announce
ments. The work of cleaning up deal
ers stocks has held up new car intro
auctions in some cases.
Reports from dealers in several sec
tons indicate that to some extent the
disposition of floor stocks has been
slowed down somewhat by disposition
of potential buyers to await the pres
entation of the new models. Sales ex-
ecutives, however, realize that the clos
ing months of the year are not natural
buying periods and are disposed to
await the clearing out of current stocks
before presenting their new cars.
The Michigan Manufacturers Finan-
cial Record looks upon prospects in the
motor car industry at present as
brighter than they have been for some
time.
Bright Prospect Seen.
1.-THE automotive industry today pre-
sentS probably the brightest picture OF
any within the Nations economic fold"
it says. with plants getting into pro-
duction of next years models from now
on, through the national automobile
shows in January, millions in cash are
flowing to contract supplies. while en-
ployeS are being recalled to their
benches in ever-increasing numbers.
Recent statements of the individual
motor car companies for third quarter
earnings revealed that cash balances
have grown from around $475, 900, 900
at midyear to we'll over $700, 100000.
This is due to inventory contraction
during the last year, the. companies
permitting cash to accumulate instead
of putting 1t into production materials.
With the beginning of production Of
new models, much of this enormous
cash accumulation will soon find its
way into the buying channels for steel,
lumber, copper, glass and the like"
Motor car makers make no secret Of
the fact that 1881 fell far short of their
expectations at its start. Throughout
ward to as the recovery year" The
industry's leaders, however are not now
concerned a great deal over the short
comings of 1881. All are looking for
ward confidently to a steadily rising
production and sales curve in the early
months of 1882. They point out that
while output for the present year prob
ably will compare unfavorably with
any 12-month period during the last
eight or nine years, it has resulted in
the restoration of a balance" to the
industry that it never before enjoyed.
The reduced inventories, strong cash
position, strengthened dealer organiza-
tons and the elimination of almost all
surplus stocks as the new year arrives
is almost without parallel in the indus
try's more recent history.
Buick, which has been turning out
400 cars of its new line daily, plans this
month to increase the daily output to
800 units. Hudson has recalled a num-
Der Of workers, presumably in prepare
ton for new model production. Its
new cars are not expected, however,
until early in January. The Lincoln
division of the Ford Motor Co. is I'M
derstood to be planning new 12-cylin-
der model and a smaller eight-cylinder
type.
Plans Watched.
The plans of the Ford company con-
tinue to arouse considerable specula-
ton. 1t is generally believed in auto
motive circles that presentation of the
much-talked-of new model is awaiting
definite cleaning up of cars in deal
ers' hands. One report, lacking official
confirmation, is that new model pro-
duction will begin shortly after Deem
Der /, with deliveries expected abcut
January /.