Evening star., 1932-01-02
AUTO PRODUCTION
GEARED TO DEMAND
Adjustment of Output to
Sales Planned by Lead
ing Manufacturers.
BY DAVID ]. WILKIE,
Writer for the Associated Press.

DETROIT, January 2.-Twenty-three
years ago the automobile industry en-
tered Unat became known as the pro
duction era" Of its history. At that
time the sco1crs who termed the
motor car a fad" or a luxury available
only to the man of means had been
squelched and the drive to establish
automobile making as a major industry
got actually under way
The industry ends year marked by
developments probably as important as
any that have transpirei in its history
since it began manufacturing" motor
cars rather than building them. The
control of production that balanced
oItput with consumer demand has be-
come more sharply defined and tile
reduction of factory inventories has
been pushed vigorously forward.
See New Era.
Many authorities in the automobile
industry sec i'll the developments Of the
past II months the beginning of a new
era in the production and merchandise
inr of motor cars. While all agree COM
petition for consumer favor will be
keener than ever before, there never
again will I've the neadlong rush for
production records that marked the
| year 1929. Controlled production, they
say has come to stav in the industry,
and FOR every automobile produced IN
he future there will be as nearly as
can ne determined at least potential
market.
Che next step in the development CT
the new order of thingS-sorle are dis
posed 10 :erm it the ''re-lnaking Of the
motor car tndustry" observers
Esy, will be an entirely new status for
The used .ar. The used car long has
be IN one of the biggest problems the
indUbtIv has had to meet. Junking
plans have been conceived, but they
have only partly solved the problem.
The real solution, some authorities
| hold, cannot be reached UTtil some plan
is adopted thai will fix the trade in
value of the secondhand car regardless
Of where or 10 which dealer 1t is offered
AS part payment on new vehicle.
Used Car Problem.
The disposition of some dealers To
! outbid others in their allowance on the
! used car has been termed by Alvan T.
| Macauley, president Of the National
! Automobile Chamber Of Commerce. a
vicious practice" that needs to be cor
rected If the industry is to speed its
recovery to normal business conditions
The used-car problem made its appear
ance almost with the beginning of the
s-production era and has been pres
| ent to annoy sales executives and pro-
| duction managers ever since.
| Making allowance for all the things
that may happen in 1882, the industry
! expects TO produce and sell next year
| 5000, 900 passenger cars and trucks, and
| If its expectations are realized. II will
! feel satisfied that its faith in the motor
car as an economic necessity has been
subStantiated.
When final production figures for 1881
have been computed, they probably will
not exceed by very many units the pre-
vious estimate of 100000 cars and
trucks. The point of satisfaction the
industry can derive from this lowest
output mark in a decade, however i,
/ one Of no small significance. 1t is the
| fact that. with the exception of abso.
lutely necessary dealers stocks, every
car manufactured during the past II
months has been marketed.
The same will be true OF the 193c
output. If 100000 cars are made
very close to that number will be pur-
chased by consumers. The 5000 ,OOC
mark. in any event will be the 1915
objective OF the motor-car industry anc
while the cars will be marketed at q