Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-13
AUTOMOBILE TRADE
OUTLOOK IMPROVES
Executives Confident That
Bottom of Depression'Has
Been Reached.
BY DAVID ]. WILKTE.
Written for the Associated Press.

DETROIT, June 13.-Although ad-
uniting that the industry is entering a
period of leSSened demand customary in
Midsummer, automobile executives are
finding cause for encouragement in the
belief expressed by many of them that
the bottom of the depression has been
reached SO far as the production and
merchandising Of motor cars Is con-
cerned
The signs by which the industry'S
leaders attempt to appraise its outlook
all are of the kind that justify optimism,
they say, even though sales for the i'm
mediate future months may show
falling off. Among these signs, as cited
by leading figure in the industry, are
the steadily increasing use of the motor
car as evidenced in increased gasoline
consumption II not in increased regis
trations; an improvement in the used
car situation; the fact that manufac-
turerS have reduced inventories, cut
production costs and have generally
strengthened their financial positions,
and finally better condition basically
in the retail division Of the industry.
Dealers Difficulties.
With the slackening OF demand on
production facilities, motor car eXecu-
tiveS are giving no little attention to
further increasing the efficiency of their
merchandising outlets. The distributor
and dealer organizations always have
presented the most serious problem to
the industry. The problem probably
has it's principal cause in the used car,
whose owner places upon 1t a valuation
beyond its real worth and demands an
excessive credit upon it If he Is to be
persuaded into buying new vehicle.
In 1929, when dealer organizations
were hard pressed to keep up with fac
tory production, excessive credits were
given OH used cars, and in many cases
the dealers, unable to resell them at
profit were forced into involuntary
liquidation. At that time, however. the
industry was operating i'll q selling
market, and the loading up of dealers
with used cars was condition in the
industry itself created by the enormous
production OF that period-5, 100000
cars in 10 months.
Today. while the merchandising dlV1-
sion of the industry has been rebuilt
with an eye to stability and the hope
thai like the manufacturing division
it can survive the depression, buy
ers' market" has appeared and automo-
bile executives are making every effort
to discourage what they call "deStruc-
tive trade practices"
Most of the companies Withholding
new models until the latter months of
the year already have begun blue print
ing for the changes they plan to incor-
porate in their 1882 models. So far no
intimation has been given Of any con-
templated radical changes. There will
be refnoments all along the line, and
there probably will be additions to the
manufacturers supporting certain of last
years radical mechanical changes low
tr sllrng bodies are looked for in some
models, greater use OF shatter-proof
glass and probably additions to the
users OF tre=-wheeling and of synchro-
mesh trapsmiSs!OnS.
Laboratory Tests.
Because Of the numerous laboratory
and road tests needed on new models
before they can be presented TO the
public. the general design of most of
the new types TO come out in November
and December already has been decided
upon. In the laboratories large part
of the effort has been directed toward
the use Of lighte" and yet stronger metal
combinations. There IS also the never
ending search for means of reducing
vibration and noise.
The rumored eight-cylinder Ford