Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-03-19
AUTO PRODUCTION
GEARED TO DEMAND
Producers Control Output in
Accordance With Number
of Dealers Sales.
BY DAVID ]. WILKIE.
Written for the Associated Press.

written IOT Lne ASSOCldbCu ElcoS.
DETROIT, March 19.-Although the
Ford Motor Co. has announced plans
for swinging into heavy production, With
the objective of creating renewed de-
mand for automobiles, the remainder Of
the motor car industry continues to ad-
here strictly to its policy of building
only for existing demand.
1t was this policy that figured largely
in the successful weathering of the ad-
verse conditions of the last two years,
and it undoubtedly will be continued
throughout the remainder of the cur
rent year. Even the imminence of what
the trade calls 'the Spring buying sea-
SON. is not likely to cause a sudden ac-
celeration of production.
Guard Against Overproduction.
This does not mean that the motor
car manufacturers are not looking for
general upturn in retail demand with
the approach Of the better driving sea-
son. The industry, as a matter of fact,
is prepared to take advantage of and
meet any condition that might develop.
What 1t does not want to do at this
stage is to load up its dealers. While
the industry has been reducing factory
inventories and otherwise curtailing ex-
penseS in the production division, the
dealer organization has not been re-
duced in keeping with the retail dtstri-
button of automobiles
Without some marked improvement
III sales during the next few months
and definite indication of an approach
to normal conditions in the industry,
not few Of the present retail outlets
must be dropped. Many of them, of
course, will drop out voluntarily if bust
ness conditions do not justify their con-
tiruance.
The industry's sales executives are
particularly gratified with the condition
Oh dealers stocks throughout the coun-
try. In some instances these have been
held down to the point where they
serve only for display purposes and or
ders from buyers have to be passed on
Immediately to the factories.
While this condition is far from gen.
eral, it indicates the steps the industry
has taken to get production under alb
solute control, and, just as it has taken
firm grip on this phase of its prob
lens, SO, too, has it dealt firmly with all
other factors its leaders have felt stood
In the way OF a return to normal con-
ditionS.
New Car Sales.
Here and there throughout the In
dustry reports are coming out Of
slightly increased production in one
line and falling off in another, or in
dications of a slightly improved de-
mand in certain price classes. In q
general way, however, new car sales SO
FAR this year, even with the advantage
OF virtually all the new models of the
assembly lines, have been below the
total Of the comparable period of a
year ago.
Sales directors have attributed this
condition to various factors, but the
conjecture receiving the most consider
alton in trade circles is that the delay
in bringing out the new Ford cars was
the chief reason for the failure of re-
tail demand TO respond to the presen-
tation Of new models by other markets
With the introduction of the new
Ford models and the fact that all other
makers have definitely determined to
make no further change in their pres
ent types during the coming Summer
months, automobile executives believe
the industry faces the best prospect it
has had for steady upturn beginning
within the next few weeks. Most of
these executives appear to agree with
Ford that all that is needed is to get
things started"