Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-31
AUTO PRODUCTION
SHARPLY REDUCED
Producers Hold Output Close
to Demand-ShutdoWnS
Are Ordered.
E the Associated Press.


DETROIT, July Slopes OF the
automobile industry'S leaders that Mid
summer vacation SllutdownS might oe
omitted this year as the result OF I'M
proving business conditions apparently
are not to be realized. AS was the case
last year, two weeks suspension have
been decided upon by several plants.
Olds Motor Works closed July %,
Oakland closed July 25 and Graham
Paige and REQ will suspend August l
to reopen August II.
Early in the year, in the nush OF
better than expected demand, not
few of the industry's leading sales ex-
ecutives had predicted there would be
produced and sold not less than
4,5O0,00O cars during what has been
termed the recovery year" On the
basis of these figures it was added that
business would be SO definitely on the
upgrade that Midsummer shutdoWnS
would be net only unnecessary, but I'M
possible.
Output Estimated.
It appears now, however, that the
total output of the automobile indus
try for 1881 may not exceed $780, 900
units. This will be more than
months normal production unoer Inc
total output Of last year. During the
first six months Of 1881 aggregate OUT
put of cars and trucks in the united
States and Canada IVES 1.633,033 units
That the recovery years showing
thus far has been disappointing Is not
being denied in any quarter, and even
less is heard of the predicted improve,
ment during the Fall months. t1nal
figures for July will not be available
for several days, but manufacturing &C
tivity showed a seasonal falling OIL Au-
gust also Is expected to be a normally
Quiet month. Following precedent.
there would be slight stepping up OF
production In September and then
gradual falling off each month until the
end of the year. It is upon these nor
NAL conditions that the estimate OF
total output of not more than $500 900
passenger cars and trucks Tor 1881 Is
based.
The fact that many producers will be
working on new models during the mai
quarter has been taken into considera-
ton in the years output estimate. Bar
ring an entirely unforeseen forward
squirt, the production of new models Is
not expected to very greatly exceed a
normal output of the current model
Whatever production expansion may
come with the swing over to new models
is expected to be discounted by the
present suspensions and those that will
be necessary while plants are being re-
fooled for the new type production.
Production Leveled Of.
The Buick Motor Co. has announced
its annual inventory will be taken in
September. 1t has also announced plans
for continuing production during the
Summer and Autumn. with new
model to be brought out in December.
While manufacturing activity during
the next four weeks may be at its low
est level for many years, the industrys
optimistS decline to be discouraged.
They agree that total output of g.
100000 units would be the lowest pro-
duction since 1921. At the same time
they point out that, unlike any previous
year during the last decade, the auto
mobile industry has leveled of produc-
ton to demand and will go into the
following year with no surplus output
that would require distress selling"
no-proflt turnovers-to dispose Of.