Evening star., 1931-11-06
AUTOMOBILE TRADE
ON BETTER BAS|S|
Manufacturers See Good
Prospect Through introduce
ton of New Models.
BY DAVID J. WILKIE.
Written for the Associated Press.


DETROIT, November 6.-Approach-
ing O new trade season, motor car man
utacturers generally believe they have
more reason for optimistic hopes than
have appeared at any time during the
last two years. It is just about two
years ago that the automobile industry
realized it had made more automobiles
in 10 months than It expected to pro-
duce in the whole year of 1929. 1t dis
covered simultaneously that 1t had man
ufactured more cars than 1t could hope
to sell within the season for which they
were produced.
After two years Of industrial decline,
however. automobile makers believe that
in the new models now coming out or
in process of assembly they have de-
veloped a product that represents the
best effort they could put forth to slim
ulate buying. The improvements IN
corporated into the new models repre-
sent the fruit OF work In the research
laboratories which motor car executives
have not permitted the industrial de-
cline to interrupt.
improvements Numerous.
Improvements in motors, in trans
missions, gear shifts, in chassis con-
struction and body design have come
from the engineering laboratories each
year, but, automotive engineers say, the
advances to be shown in the impending
new types are In many respects little
short of startling. While the engineer
ing department of the industry has de-
voted much Of its effort toward further
ease in driving, the tendency toward
silence of operation and riding comfort
has not been overlooked.
Production executives frankly admit
the new types by contrast with the car
of last year and the year before will
hasten the obsolescence of used cars.
They point out, however, that the new
cars have been designed with that pur-
pose largely in mind. They will argue
there really has been no saturation
point In the industry, at least SO far as
the potential motor car market Is con-
cerned; but at the same time they ad-
NIT the future Of the automobile in
dustry depends largely upon the ability
of the engineering department to pro-
duce each year a better vehicle.
has been placed by the industry'S stat
isticians at seven years. The industry,
however, cannot wait seven years or be
satisfied each year with the replace
ment Of only the cars that are years
old. It Is striving to increase the vol
ume of annual requirements by so i'm
proving each years new models that
many vehicles will be surrendered to
the dealer in used cars long before they
need to be Scrapped by necessity.
Regardless of what the approaching
season may develop for the motor car
industry. it appears certain that the
keenest sort of competition will occupy
the merchandising organizations. The
potentialities Of this competition are
causing manufacturing executives con-
tinued concern. It was unrestrained
competition that started the industry
on its production expansion in 1929.
The production expansion in turn ran
the merchandising division on its feet.
Controlled Production.
With controlled production apparently
a permanent policy with the motor car
industry, the thing the manufacturing
heads would like to see is q healthy
competition, without exaggerated trade
in allowances on used cars and safe
financing, general stimulation Of new
car buying and a definite and perna-
nent solution OF the used-car problem.
The prospect for at least a partial ma
terialization Of this hope seemingly is
brighter as the new season approaches
than it has been for some time past.
There appears to be general agree
ment in automotive circles that the
motor car industry never again will
utilize its full production capacity. Just
what the capacity of the industry's IA
cilities amounts to at present Is some
what conjectural but it has been said
that in 1929, when more than $500, 900
units were turned out, it had equipped
itself to make nearly twice that num-
Der. The fear Of competitors plans in
the boom year led manufacturers to
expand production facilities to the point
where they all but engulfed the lndi-
vidual maker.
Two years Of steady pairing down Of
plant inventory, absorption Of over
production and the reduction Of deal
ers' stocks has brought the industry to
the point where its executives profess
to believe they approach the new sea-
son with brighter prospects than at
any time since the collapse of 1929.
While many of the old established
companies are bringing their new mod
els of the assembly lines, a new pro-
ducer is entering the field In George
M. Graham of Detroit Graham, who
is not related to the Graham brothers
and has no connection with the Gra-
ham-Paige Motors Corporation, is PLAN
ming to bring out a six-cylinder car
which he will name the "Rockne Sly +"