Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-23
AUTO PRODUCTION
SCHEDULES SMALL
Used Car Remains Problem
as Plans for New Models
Are Pushed.
BY DAVID S. WILKIE.
Written for the Associated Press.

DETROIT, october 23.-The decline
in production that began IN the motor
car industry several weeks ago con-
tinues, with rather uncertain prospects
for an immediate halt. On the basis OF
information cleaned from various
sources in the industry, these facts con-
corning its immediate future stand out
as fairly reliable representations:
Total production for 1891 probably
will be the smallest the industry has
experienced since 1921.
The last quarter of the present year
will develop little acceleration IN retail
demand.
Total sales for october may not ag-
gregate 100000 vehicles. while produc-
ton probably will exceed that fgure by
not more than 10 per cent.
The used car problem and exorbitant
trade-in allowances will continue to
worry the industry after the return to
normal conditions begins.
But
More cars will be strapped during
1881 than the factories will have pro-
duced by the end of the year, and with
production closely balanced to demand
the industry will be basically in better
condition than it was year ago,
New Model Production.
Final quarter output restriction will
be due more to the turning to new
model production than to the falling
IF in retail demand.
The curtailment of october output
and sales will be due largely to the
inclination of potential buyers to await
The new model presentations, and
smaller production schedules will afford
dealers opportunities to clear their
stocks to be ready for new model sales
by January /.
The industry expects to have used
car problem as long as there Is demand
for new cars, and 1t looks 70 the pru-
dent dealer to solve that problem.
Many plants that have either Sus-
pended operations or further curtailed
their production schedules have begun
to concentrate on new model prepare
tions. Little, if any, information has
been given out regarding the new
models, which should begin to come on
production lines within the next month.
No secret is made Of the fact, however,
that the industrys hopes for better
year in 1892 rest largely upon the ap-
peal that can be made to the motorist
with the new cars.
1t has been said in some quarters
that much of the retail sales stimulus
that normally would have carried the
industry through the late Summer
months has been lacking this year be-
the manufacturers to withhold new
models until the end of the year. 1t Is
possible that had the industry's leaders
been able to foresee the Disappointing
showing of what they had expected to
be the recovery year." many more new
models would have been brought out
during the midsummer months.
The main objective of the Winter IN
PRODUCTION of new models was TO IN
a u
was most needed. In this respect the
industry expects to be considerably
more successful than it was during last
Winter, when a large surplus OF pro-
duction had to be carried over. To
make their plans for employment fur-
Their effective, most of the larger plants
are working out plans to distribute pay
rolls among as many workers as posi-
BILE This is in line with a recommends
ton By the National Automobile Cham
Der of Commerce, which initiated the
no-midsummer models policy for the
industry.
Plans Held Secret.
Depending so heavily upon the new
types to be brought out around the end
of the year for the stimulus needed to
get the industry started, 1t can be said
that all the developments Of the engi-
neering division will be incorporated in
the new cars. Just what these will
embrace is being kept secret for COM
petitive reasons as well as for the in
terest the policy Of secrecy builds up
among potential motor car buyers. One
of the difficult problems facing produc-
ton engineers has been just how to
incorporate all available mechanical i'm
provementS and refinementS in the COM
Ing models without adding to the cost
to the consumers.
In the main this has been accom-
pliShed through manufacturing econo-
mics and the elimination Of every pos
sible source of waste.
While there has been some bargain
selling" by the merchandising division
of the industry, the movement has not
been general. At the same time the
dealer organizations are concentrating
on the clearing out of stocks on hand
in order to have clear floors when the
new models are ready for distribution.
In this effort the curtailment of pro-
duction is helping them materially.
Used-Car Problem.
With all its worries about employ
ment holding production to approx
mate retail demand and taking advan-
tage of every opportunity to promote
interest in the forthcoming new models,
the one vexatious problem which the
industry seemingly cannot dispose Of
is the used car Stocks are reported to
be increasing. sales declining, and in
many cases appraisals are far above
actual value. Probably no one factor
in the automobile industry causes its
leaders as much concern as the trade
in practices that competition has in
jected into the merchandising division.
The industry's chiefs do not oppose
the turning in of used vehicles as part
payment for new cars. They do, how
ever, warn against exorbitant allow
ances that leave the dealer with his
assets frozen to the point where only
bankruptcy can thaw them out.