Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-27
DEMAND FOR AUTOS.
REVEALS INCREASE.
Better Sales Result in Step
ping Up of Schedules
at Factories.
BY DAVID J. WILKIE,
Associated Press STAFF Writer.

DETROIT, February 27.-Although
the automobile industry has wiped out
entirely the overproduction that heavily
burdened its market last year and has
endeavored to level off output to de-
mand, a certain volume of cars for
which purchasers are in prospect rather
than on the books always must be kept
in transit.
To some extent this prospective de-
mand accounts for the steadily increas-
ing output of the last few weeks and
the increased employment in the in
duStry. At the same time reports from
dealers regarding this potential demand
and the approach of good driving
weather has figured in the determi-
kept in transit.
Disposal Of Surplus.
A year ago the problem facing the
industry was the disposal of a huge
surplus production and the mainte-
nance of skeleton organizations for the
time when the turn" came. Today,
with all producers convinced that time
has arrived, the problem of each manu-
facturer in an industry probably as
highly competitive as any other in the
world is to be prepared to take the
fullest advantage of what the Spring
buying season" will bring.
1t is authoritatively estimated that
on February l new passenger car stocks
aggregated 100000. This was about
$4,000 units below the inventory of the
like date a year ago. A year ago, how
ever, the industry was in the midst OF
its drive to dispose of the great over
production that aggregated between
100000 and 100000 units.
Continuing an aggressive sales policy
inaugurated last Fall, the Chevrolet
Motor Co. next Monday will begin
series of meetings solely for retail sales
men. The meetings to be held in zone
headquarters" in So key cities are to
continue until March is and are in
tended to reach every member of the
company's domestic retail organization.
THE move" said the comrNny's an
nouncement, represents an eXtraordi-
nary activity by Chevrolet based on the
belief that unusually good business in
1881 will reward the organization which
goes out after it."
Gain in Production.
An encouraging increase in produc-
ton by the Ford plants is reported dur
ing the last week. While no formal an
nouncement has been made, the COM
pany's production program is expected
to be stepped up to approximately 100,-
600 units IN March. This would mean
increased employment IN the Ford plants
and the placing of additional depart
ments on five-day schedule. Many of
the departments still are working on a
three -dayS-a- week basis
Just how American manufacturers will
meet the action of the Canadian govern
ment in reducing the discount allowance
on motor cars entered for duty has not
been determined. Several importers
have been quoted as saying they will be
unable to continue III business under the
new conditions The Hudson Motor Car
Co. is understood to have notified the
Canadian customs department that it
will establish plant in Canada.
The expectation of American-made
cars and parts to Canada last year to-
tailed approximately S48, 900, 900 in
value. In 1929 1t reached $89 900, 600.
While the shutting down on American
made motor -ars means considerable
loss in revenue to tie Canadian gCy ern-
ment, 1t expects to more than balance
this by increased industrial activity.