Evening star., 1932-09-05
BUYING WAVE SEEN
/ IN AUTO INDUSTRY
Bright Spots Noted in August
/ Despite Recession in
Production.
Special Dispatch to The Star


DETROIT, September 5.--Automobile
production in August slipped off to one
of the lowest points Of the year
Nevertheless the month was not with
out its bright spots.
Dealers, reporting to Detroit sales
Offices. noted an increasing number OF
inquiries regarding new sales. At the
same time dealer figures showed that
used cars were being well absorbed by
the market, particularly cars that could
be handled for price of $500 or less.
Sales in Wayne County. an index to
be closely studied by manufacturers,
held up we'll throughout the month In
relation to July.
turers able to make a favorable COM
parison. For the first 20 days of August
production was greater than it had been
for the similar period of July.
Ford Pace Slackens.
Ford slackened pace at Dearborn
with his suspension the middle OF the
month Ford production for August
probably will not exceed 10000. Plym-
outh production averaged from 1,5OO to
1000 units week.
Hudson-Essex had a busy month
turning out Terraplanes. Graham
COI1lulu6O W ICoJOAAoAhS AiAo'AA AA~
for its new six, fact that was reflected
along the assembly line. WHY'S Overland
also was able to make favorabl show
ing.
Although it has been a frequent
boast that the motor industry holds
logical position to lead the country out
of the economic doldrums, one hears
the same view expressed today that the
recovery in motor manufacturing must
accompany or follow improvement else
where 1t is logical, then, that auto
makers should be making close study
of all the phenomena that give lndl-
cation of business improvement.
Higher cotton prices are expected to
bring some concentration this Fall in
the South on the part of the Detroit
sales departments. The automobile
manufacturers hereabouts are hunting
the spots right now where there is in
dication of growing buying power. They
see in the South, where cotton prices
are up, and in the Southwest. where
the oil industry has given indications
of improvement, areas that deserve at
tention.
The attitude of the manufacturers is
that they cannot be expected to make
immediate improvements in their cars
or in prices to revive sales. Auto val
u6zS dIe &ItdbCI Jlldll lklCy 1ldNC CNCI
been before-poSsibly greater, dollar for
dollar, than they will ever be again.
Manufacturers have gone the limit.
They are compelled to fall back now on
the purchasing. power of the consum-
ing public.
Sees Buying Wave.
George M. Graham, vice president, in
charge of sales for the Rockne Corpo-
roration, is one of the motor executives
who believe release in buying power
Is imminent.
Our August results were better than
July" said Mr.. Graham. I'VE feel that
September and October will go above
August, and even look for fair busi-
ness in November and December.
I'VE know that the remainder of
1882 business can be secured only
through the direct personal contact of
dealers and statesmen with prospects.
the market is waiting one. 1t cannot
be stampeded.
"The question Of automobile volume
IN 1888 is largely one of general busi-
ness conditions.
"It is our opinion that the bottom
has been reached. There-seems ten
dency for commodity prices to stiffen.
There may be fluctuations, but the
teuQency Is upward. Lie CreulL Sltud-
ton has been greatly improved.
IF the depression has established one
thing conclusively it Is that people will
not give up their automobiles, for they
have built up their business and domes-
tic life around this kind of transpor-
tation.
ut is my own belief that any genuine
business improvement will be followed
by an outburst of spending. and that
automobiles will be bought in quantity,
even those which involve the higher
prices"
C. w. Matheson, general sales man
ager for Graham Paige, also expresses
the viewpoint that improvement lies
ahead for the industry.
"Our sales progress during the past
several weeks indicates that business
conditions generally have turned for the
better" Mr.. Matheson said. mot only
have our retail deliveries quickened, but
our dealers stock orders also are in
creasing substantially. We are finding
a new tone of confidence and enthusi-
asrn among our distributors, more pro-
norlnced than at any time since 1929"
Copyright, 1922