Evening star., 1932-07-17
AUTO PRODUCTION
GEARED T0DEMAND
Industry Watches Retail
Sales for Guide in Deter
mining Output.
BY DAVID J. WILKIE.

DETROIT, July l6.-Production fig
ureS are again coming to the fore as
indicating the measure of prosperity en-
loved by the automobile industry.
Until about three years ago, all ref
erence to past performance and pre-
dictions for the industry were based on
the total number Of cars and trucks it
had produced or would run off the
assembly lines.
But the flood of motor vehicles pro-
duced in 1929. and the consequent sur
plus of approximately 100000 units
to be carried over into 1890, leaders
of the motor car world came to a sud-
den realization that retail distribution
must come first in appraisals of the
outlook.
New Registrations Watched.
Thus, for the last three seasons, they
have been watching reports of a new
car registration in the various States at
different periods throughout the year
to adjust their merchandising activities.
Meanwhile, a steadily tightening con-
troll on production has brought about
balance between output and demand
as nearly perfect as is possible in an in
dustry whose markets are scattered
throughout the world.
Having levelled off output to cur
rent and definitely established potential
demand, the manufacturers again are
able to scan production figures as they
did before the uncontrolled program in
1929, swamped the industry.
The production of new models, which
soon will be we'll under way in most
leading units of the industry, probably
will stimulate output to no small de-
gree during the closing months of the
current year. Yet, there will be no
easing up on the industry's program
of keeping output strictly within the
volume of retail requirements.
In previous years, when new models
usually came off the assembly lines, in
midsummer, the retail division found
difficulty in making sales in the early
Summer, many potential buyers with
holding purchases pending the intro
duction of new cars. Under the policy
of bringing out the new cars for show
time in January, with definite assur-
ance that the style and mechanical
changes will hold throughout the year
many sales directors believe the usual
midsummer fiat spot" in the mer-
chandising program has been relieved
to a considerable degree.
Another advantage of the midwinter
introduction of new models. the in
oustry's leaders point out, is that it en-
ables maintenance of employment at
a time when it is most needed. Shut
downs for retooling of plants now are
taken care of in the Summer months
instead of later.
Re-To0ling Operations.
In connection with the >re-tooling
operations this year, one authority in
Michigan manufacturing circles has
estimated the automobile industry will
expend between $12,000,000 and S15,-
600 900 in preparing for the new models
to be introduced later this year and at
the National shows in January.
Total production for the first half of
1892 has been authoritatively estimated
at 912,353 units While impending shut
downs by several plants will cut into
the output for the latter part OF the
Summer, the upturn to come with
actual production on new types, and the
indications that there will be no sus-
pension by the Ford Company this Sum-
rner. probably will result in total out
put for the year of close to 100000
cars and trucks.