Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-31
AUTO PRODUCTION
KEYED TO DEMAND
Manufacturers Watch Retail
Sales Figures in Plan
ming Output.
EY DAVID J. WILKIE.
Associated Press Financial Writer.


DETROIT. May 3o.-The automobile
industry. accustomed TO a seasonal Ce-
cline at this period, has begun to put
on the brakes. temporarily at least.
Whether the decline is impending or
net, the industry intends to avoid
over production, the one thing to which
it attributes the collapse of 1929.
The caution with which the industry
is going through what it has termed its
recovery year" kspeaks the unccr-
taint5A-~-vit - it views the i'm
mediate future. Hhat there will be
plant shut downs again this Summer
seemingly is accepted as assured. Their
duration, Of course. will depend upon
the movement of retail stocks. Sup
porting the impression in some circles
that most of the shutdowns will be of
only nominal duration is the fact that
the industry has production under abb
solute control and has measured it of
fairly well with current and potential
retail demand
Basic Conditions Better.
The recovery which many in the
industry believed had started with the
turn of the year has been a bit slower
than was expected. Plant executives,
however, have kept a sharp watch on
retail developments, have reduced fac
tory inventories and the cost of pro-
ducing a car generally. The result has
been that many of the producers here
tofore operating at loss have been
able TO show a margin of profit.
Basically, leaders Of the industry as
sert, it is in much better shape than it
has been at any time since 1929. The
recovery" they say has not been alone
matter of increasing the volume OF
sales it has been a problem in reduc-
ing production and sales costs.
Production schedules in all plants
have been more or less elastic during
the last four or five months. with each
months output exceeding original eSti-
mates This has been part of the in
dustry's policy of caution-to not place
the estimates too high. It is likely
pending, specific production schedules
summer months.
New Model Agreement.
Despite indications that the down
ward trend in retail deliveries cue at
this season is close at hand, II it is
not already present, some of the more
stubborn among the motor car in
dustrys optimiSts insist that the pro-
duction peak has not yet been reached.
The optimists have counted heavily
upon the fact that current models were
not to be changed in Midsummer as
has been customary In the past. Those
inclined to be less enthusiastic over
the immediate future in the marketing
of automobiles express the opinion that
too much reliance has been placed
upon the results to be expected from
the mo Summer models" policy.
If any considerable volume Of retail
demand was withheld pending new
model arrivals, they say. it should have
been released in larger measure with
the advent of good driving wea ther,
and it should hold through during the
vacation months of July and August.
Beyond this there has been some dis
cusSion in automotive circles as to
Just how fully the agreement to intro
duce no new models until November
or December has been lived up to by
the manufacturers subscribing to the
plan.
1t has been pointed out that while
most, if not all, of the manufacturers
presumably parties to the agreement
have not changed their present models
and DO not plan to do so within the
next few months, not a few have
brought out additions to the current
lines. In somes cases these have been
what properly could be termed COM
petitive types" Sponsors Of the plan
have said this does not constitute q
failure to live up to the agreement. In
other quarters the remark has been
heard, however, that the full benefits
of the arrangement cannot be realized
unless there is very definite assurance
to the motorist that the maker of his
favorite automobile will not bring cut
an additional model shortly after he
has purchased a new car for his Spring
and Summer driving.
Registration Figures.
A compilation Of 1880 passenger car
registrations by the National Automo-
bile Chamber of Commerce shows that
only seven States licensed more than
1000 900 vehicles. New York led with
1866, 981; California was next with
1,810,969. The others were: Ohio,
1,555,093; Pennsylvania, 1,534,834
Illinois, 1,430,676; Michigan, 1,161 ,051,
and Texas, 1,159,139.
The New York Central Railroad re-
ported for April net operating income