Evening star., 1932-11-05
CONTROLLED AUTO
OUTPUT AIDS TRADE
Producers Have Learned
Lesson of Economy in
Building of Cars.
Stock and
BY the Associated Press.

DETROIT, November 5-One Of the
anomalies Of the automobile industry is
that it always profits from its adversely
Leaders Of the industry assert that,
although it has experienced many lean
Years in its history. out of each of them
has come some lasting good TO the in
Gustry.
While the early lessons of adversely
did not enable the industry to escape
the tradition Of cycles-a lean year fol-
| lowed by recovery periods-motor car
| manufacturers believe the experiences
Of the last three years have come close
| to pointing way TO avoid such peak"
and valleys"
Most of the automobile producers be-
| lieve that the controlled production"
| policy will prove to be one Of the most
| significant factors evolved from the
| overproduction period of 1928-29 and
that with the support Of the entire in
dustry it will figure largely in bringing
about staoilization Of the industry.
Output Restricted.
The controlled production" policy is
another OF the movements sponsored by
( the National Automobile Chamber Of
Commerce, of which virtually every
| motor car manufacturing company ex-
ceptlng Ford is member. 1t is pointed
out in trade circles, however, that al
though the Ford company is not affili-
, ated with the National Chamber, it has
| adopted the policy of restricting output
to demand.
The sharp reduction of factory in
ventory. the cutting down of produc-
tion costs, utilization of normally
slack periods for new model produc-
ton and the closer contact between
producer and distributor are other evo-
lutlons of the last three years which
the lnduStry's leaders say will result in
| fewer high and low points in automo-
pile employment, production and distri-
button.
Motor car executives hope to stabilize
output somewhere around the 100000
unit year point-and hold it there.
In 1929, in scramble for a production
mark. some, 5,600.000 vehicles were
manufactured and the sales division was
pressed from all sides to pass them on
TO the consumer.
The task was an impossible one for
, the retailer, and when the year ended
something like 100000 new cars were
unsold, croWding warehouses and deal
ers floors
Figures compiled by R. L. Polk g. Co.
of Detroit from official registrations
throughout the United States show that
total new car sales for the first nine
months of 1882 totaled 943,1 pas
senger cars. This distribution, main
tanned through the remainder of the
year, would account for slightly more
than the previously predicted total for
II months of approximately 100000
cars.
New Sales Reduced.
There was, however a marked fur
ther reduction II new car sales in
October.
A large number of plants have closed
down their assembly lines temporarily
in preparation for new model output.
Although no definite announcements
have been made. these suspensions are
not expected to be of long duration. In
several instances. part of the retooling
operations already have been completed,
while in others the changes to be made
are understood to require only small
amount of machinery replacement.
The changes to be incorporated in
the new models still remain a secret
with the respective manufacturers. and
this information probably will be with
held until the retail divisions of the
companies concerned have had oppor-
tunity to clear out their stocks of cur
rent models.