Evening star., 1932-04-24
AUTO PRICE WAR
NOW HELD AvERTED
No Further Cuts Seen by
Officials of Motor
Industry.
Special Dispatch To The Star.

Special Dispatch to The Star.
DETROIT, April ga possible au-
tomobile price war has been averted, in
the belief Of company officials who mean
what they say when they talk.
The conclusion to be drawn is that
automobile manufacturing has been in
ventoried, debated, liquidated and re-
| adjusted in so many ways and so many
times since slump conditions set in,
that the industry has had to call q halt
In revising prices downward.
On the contrary. the prices should go
up instead Of down, when the added
value that 1882 cars represent is taken
into consideration. Basis for this view
Is found in the remarks of I. j. Reuter-,
who recently assumed responsibility for
Buick and Oldsmobile production in the
groups Of plants that build these cars
Upward Trend Foreseen.
Speaking in public at Lansing few
! days ago, Mr.. Reuter- Is quoted as say
| ing that this country never again will
see such automobile values as are offered
by all makers this year.
Automobile manufacturers as well as
truck makers" he declared, have cut
to the bone. Economy of manufacture
was never SO pronounced. Overhead Is
down to an inconceivable point. Wages,
salaries and everything that contributes
| to the cost Of making motor vehicles,
nave been slaShed with prices Of the
products.
so, If the public intends to buy. now
Is the time. 1t is the belief of manu-
facturers and accessory makers that
1882 will see the end of so much value
for so little money.
From now on, prices will swing up
ward rather than downward.
This, find, is the general opinion
and manufacturers give their reasons.
Competition, Of course. has created this
day of automobile bargains. Should
business start upward, which it will,
and trade increase, there will be the
usual combination of things economic
which will force prices upward"
Testimony Corroborated.
Mr.. Reuters testimony is corroborated
by that of Chester G. Abbott, general
sales manager of the Hudson Motor
Car Co. To field executives of the
concern, Mr.. Abbott stated
Hudson and Essex prices are based
directly and fairly on production of
these cars and are not and will not be
! dictated by any competitive inducement
which considers low price as the chief
impetus to sales"
Thus is the company's price attitude
expressed. coupled with a report sales
have been increasing for the last five
weeks. Sales for the week ending April
Is were larger than for any week this
year
According to A. Vanderzee, general
sales manager of Dodge Brothers. Inc,
pocketbOOkS have started Welding to
values unsurpassed in the history of
the industry He believes sufficient
momentum has been built up to swing
sales for the next nine months up to
or even above 1881 levels.
National Report.
Making a national report on the first
! 10 days of April, Chevrolet headquar-
ters find that dealers sold 17.452 new
cars and 26,573 used cars. According
to H. j. Klingler, vice president, this
/ was the best Today period the COM
pany has experienced since January l.
1t was 1000 cars ahead of the previous
week
The same price argument that ap-
| piled to the automobiles should be ex-
| tended to tires. This Is the opinion of
j. F. O'Shaughnessy, general manager
Of the United States Rubber Co.'S tire
division, here.
In the last five years" Mr.
O'Shaughnessy points out. tire mileage
has been multiplied five times. but dur
ing this period tire prices have been
divided six times Prices today are at
basement level and so low that
profit has vanished
(Copyright 1882 by the North American
Newspaper Alliance, 1nc.)