Evening star., 1932-08-20
ACTIVITY IN AUTO
PLANTS IS SMALL
Producers Hope for Improved
Demand Later in
Year.
BY DAVID ]. WILKIE,

Written for the Associated Press.
DETROIT, August 2o.-Activity in
the automobile industry's production di-
vision this week was close to what
company executives hope will be the
lowest point to be reached this year.
Closing down of the Ford Co.'S shops
at Dearborn and the curtailment OF
production in other plants was nat
ursl reaction to a falling off in de-
mand. So closely are motor manufac-
turers adhering to the policy OF ad-
justing output to actual demand that
any stepping up in production must be
preceded by an expanded consumer
market.
Current Business Small.
Not a few of the sales managers OF
leading companies profess to see an
upturn in this consumer demand COM
ing this Fall. but all admit that cur
rently there is not "a great deal OF ac-
tual business" They report at the
same time a marked improvement IN
"dealer morale" with considerably more
optimism than has been appareno NJ
among most distributors for the last ~
months or more.
Announcement of the Ford Co.'S sus-
nension was unexpected in trade circles.
While the announcement SAID only the
parent plant at Dearborn was aHecteo,
three weeks of non-production there
will cut sharply into the previously es-
timated total production Of the lndus-
try of 100000 units for this year. Inc
Ford plant will reopen on september
s. barring some further change In plans.
In only one year since 1919 mas tLe
motor car industry turned out less tnan
nla
when the production of war munitions
occupied much of the industrys facln-
ties The total output for that year was
1.17o686 passenger cars and Trucks.
some of the less optimistic among the
trade say that unless marked upturn
comes in the final quarter OF 1857 tne
wears total output will not greatly eX-
ceed that of 1918.
In other quarters of the industry the
statement is heard that at the moment
the most important thing Is TO keep
production sharply balanced with actual
demand and that this Is what the m
dustry is doing in all price classes. WIN
practically no surplus carried over, con-
seryative leaders in the industry say,
the slightest loosening up OF knotted
nurse strings will be Immediately re-
flected in increased manufacturing &C
tivity.
Production Figures.
Significant Of the effort in this
direction are approximate figures on
production and new car registration IN
july. The National Automobile Cham
ber of Commerce estimated the total
output of the United States and Canada
. at l12, 600 units. An authoritative estl-
mate of new car sales, based en- regis
trations in the United States and
Canada, places the total at about
106 900.
Most of the larger plants were In
operation throughout July, although on
a reduced schedule. With Ford and
some other plants closed mcSt OF the
current month, it IS possible dealers
stocks will be sharply reduced by 9
greater new-car registration than FAC
tory production.
Such a development would be ir
keeping with the industrys plans u
clear out all present retail stocks before
new models come off the assembly
lines. While Ford is not planning new
model or any significant changes II
the present types so far as is known
many other producers are due 10 turr
10 1888 model output soon. In mos
cases these new models are not planned
before the latter part of the year, ou
their appearance may be fastened IL
some instances if the predicted upturl
develops this Fall