Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-03
AUTO
WAR IS IMPENDING
Rivals Hope to "Take" Lead
ing Producer With Well
Timed Attack

Zero hour for a combined assault by
manufacturers Of low and medium
priced automobiles on the leading pro-
Queer in that class, has struck. The
attack already has begun and it seems
| likely it will last throughout the re-
mainder of the year. The attackers
! feel that their move has been per-
! fectly timed and is being executed I'M
der most advantageous circumstances.
| They boast openly I'VE will take him
| like Grant took Richmond"
| Automobile men in other price f1elds,
| bankers and economists say that boast
| is both premature and unwarranted.
You may pass him." they say. but
| you will never take him." The at
tackled manufacturer Is saying moth
! ing but 1t is known he has his plans
pleted and that he has the most as
tonishing volume of heavy financial
artillery ever assembled, in reserve.
Throughout the early part of this
| year, the leading producer accounted
| for over As per cent Of all the auto
mobiles sold in the United States. That
time has passed. Today he is working
his factories three days week and
dealers say he is encountering strong
sales resistance in retail fields in this
country. His chief rival is the low
! priced unit manufactured by a great
| corporation, which completes in all price
| fields in the automobile industry and
in aviation and who has subsidiaries in
other lines of endeavor as well.
VIII Increase Output.
The low-priced car made by this
company has led all others in popular
approval for some weeks. The factory
making it turned out 81 900 units in
April and will increase this rate ma
terially in the current month. Other
makers of low priced cars have done
well this year, although their sales
have not been of such heavy volume
as the two leading concerns. Some
have been handicapped by dragging
sales of higher priced lines which they
manufacture, but it seems evident that
the main demand for the remainder of
the year will be in the low and middle
price field and they feel amply justified
In throwing their shock troops into the
battle.
The leading producer, it has become
known, will close his plants within the
next few months and change his model,
putting out an eight-cylinder car. This
move has been frequently forecast, but
it has always been possible up to now
to overcome sales resistance and COM
petition from rivals without recourse to
this move. By its very nature 1t must
be an extremely costly one.
knowledge that q new model Is COM
ing out undoubtedly would have tend
ency to delay sales on cars now in
dealers hands. The retooling of the
plants will cost well over $4,000, 900. It
will require no little time to train the
forces employed in the factories to the
new motions incident to production of
a different model. Finally enough
machines must be manufactured before
any Is shown to the public so that
when sales are finally contaminated,
dealers can make immediate deliveries.
Made Up Lost Ground.
The rivals of the leader will take
full advantage of these conditions It
will be remembered that when the
leader changed from the old model
which had served him for many years,
his nearest rival far surpassed him for
the time being. He came back strongly
and made up lost ground at an aston
1Sh1ng rate. It Is both possible and
probable that he can do this again,
but at least he will know he has been
in battle.
The flckle taste of the public is
something neither side can guage. That
taste manifestly has altered in recent
months or this attack would not have
been started. A third rival may arise, |
which will sweep over the present con-
testantS like swarm of hungry To- |
Gusts. This happened more than once |
in the horse and buggy games in days !
prior to the automobile.
(CopyriRht, 193l)