Evening star., 1932-04-10
TRENDS CONFLICT
IN AUTO INDUSTRY
Reductions in Low Price
Fields Compare With Ad-
vances in Others.
Special Dispatch to The Star.

Special Dispatch to The Star.
DETROIT. April 9.-With interest
for the time being centered On
prices. automobile manufacturing with
in itself is showing conflicting trends
To the lowest priced division have
come the Ford Weight and Plymouth
to intensity the competition in that
range. No real price war has developed
as yet, but the bargain hunters, more
rabid than they have been for years
are looking for action.
They are getting it from General
Motors, which revised Chevrolet SIX
and Pontiac six prices downward.
Different Situation.
Away from the low-priced field an
altogether different situation exists. II
applies to independent companies
like General Motors and Chrysler. In
this sector some prices have beer
forced up due to conditions over which
companies have no control
The result has been increases by five
makers which average about 500. or
flcials of these companies say the in
creaSes have become imperative be-
cause contracts they made last Fall
with material and parts suppliers have
run out. They cannot renew them al
the old figures, which in numerous In
stances were below cost of production
therefore the rise Five companies are
on record with such action and more
may follow.
The explanation is that deflation car
go no further in the plants that build
the 81 900 cars and skies coming some
what below that price as well as eight
cylinder cars that run above it. The
reason Is that large volume for this
year. or whatever there is of expanded
output, will go to the lowest-priced
group of the factories. With volume
for the others under forced control
gross income as in the prosperous
years: therefore the economic law must
be obeyed The products have to be
listed at higher prices.
Price Statistics.
The degree to which prices have
moved up and down since the slump OF
1921 has been traced by the Stats
ticianS.
In 1921 the average retail price pe1
car of all makes was 1858. In 1922 in
creased production and competitive
selling brought a reduction to sS7B
The drop continued through 1928 ano
touched $808.
Then, in 1924. the average began tc
ascend and continued to do so for foul
years. In 1924 there was a rise to 1924
in 1925 to 1915, in 1926 to $925 and In
1927 there was a peak of 1881, said tc
be the all-time high.
From 1927 to this year the trend
turned into a descent, with values in
the way OF improved cars and extra
equipment on the upturn. For 1925
there was a drop to S8e9. In 1929 tc
$3.50, in 1880 to S788 and the lowest
point on record in 1881, which was
S765.
Replacement is now the main factor
regulating demand. In future years il
may be supplemented by a revival OF
exports If the world market can be
widened by the removal Of tariff bar
riers, but that time appears distant as
yet.
Junking Of hundreds of thousands OF
cars would help the home trade. Last
year witnessed the start of a concerted
effort by factories to promote junkine
on an organized basis. OF 2,477 OOC
cars that were removed from service
last year, 283000, or 11.6 per cent. were
eliminated by factory supervision This
amounted to one-ninth of the cars that
were scrapped, leaving 2194, 900 to &c
to other graveyards of one kind or an.
other.
tCopyrisht, 1892. by the North American
newspaper Alliance, Inc)