Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-19
FACTORIES READY
! FOR SUMMER REST
Faster Production Methods
Aid Auto Industry to Pre-
pare for Let-up.
m,ee,sI Disnatch 10 The Star.

Special Dispatch TO The Star.
DETROIT. July 18 (N.A.N.A)-The
automobile factories are getting ready
for the annual Summer vacation period
following the seasonal ease-up in sales
which became apparent in the nnal
weeks of June.
Vacation periods, be it known, have
become possible not altogether through
reduced volume, but partially through
faster manufacturing and use Of i'm
proved machinery. Fewer factory hours
are required to produce like number
Of cars now than in former years. ANY
complete lay-offs that are decreed our
ing July and August will not be ior
more than two weeks Tor any OF the
6rst-rank producers.
Several of them, in fact, have de-
eided to keep assembly lines going all
Summer for a designated number OF
days weekly.
Under prevailing conditions there are
certain encouraging factors In the SIT
uation from which the magnateS are
taking what consolation they can In
the face of figures for the first half OF
the year. disclosing a 30 per cent drop
in volume as compared with 1881.
Free of Difficulties.
One is comparative freedom from
financial difficulty, which none OF the
big-time producers appears to be ex-
periencing despite the adverse condl-
tions. Another is progress IN stablliz-
ing supply with demand to level out the
peaks and valleys of production actlv-
ity that have been known during less
trying business periods.
That the number of cars the plants
have been turning out has been
"geared" to consumer requirements Is
indicated in a Department OF Com
merce report It shows that output for
the first five months of this year has
exceeded the total Of new-car regis
trations and export sales by only per
cent, which is considered a safe margin
The master minds who have the vel
fare of the worlds greatest industry at
heart realized early in 1880 that con-
trolied output was imperative. They
acted accordingly, and as result
recent survey shows that stocks OF new
cars in the hands ~ dealers have been
reduced to approx faately 100000 units,
as compared with $4,000 one year ago.
In 1929 this factos was allowed to swell
until it reached $4,000.
This means that the retail inventory
has been cut about As per cent and the
dealer burden has been lightened.
Percentage About Same.
The objective of this year in equaliz-
ing production, sales, and consequently
employment, is to get away from the
low level that was reached in the last
three months of 1880. In that period
the charts show that only 1872 per cent
of the 3,510,178 cars and trucks slated
for production last year were actually
built
It is true that the percentage for the
same period of 1929 was approximately
the same, but because 1929 was the
peak year, with the all-time high OF
5,62l.715 vehicles, the business did not
feel the let-doWn so severely.
Executives who have charted the
course for the last half of this year
taking into account the trade weather
indications, are hopeful that the second
and third quarters will push up. II
the hopes are realized, the extreme dips
should disappear from the diagram that
the statisticians will trace for 1881
The line through the four quarters can.
not possibly be straight. but it will be
on the way toward Strengthening as
contrasted with the deep hollows OF
1880
(Copyrishs 1881. by the North American
Newspaper Alliance, Inc.)