Evening star., 1933-04-16
AUTOMOBILE trade
IN HOPEFUL MOOD
Producers and Dealers Enter
Second Quarter With Re.
neWed Confidence.
By the Associated Press.

DETROIT. April 15.-Producer and
dealer activity In the automobile in
dustry continues to show an encour-
aging upward tendency - the tradi-
tional season Of hope" gets well under
way Although most Of the traditions
Of the industry have gone into the dis
card during the last three years, the
fact that the second quarter Of the year
usually furnishes the barometer for
appraising the demand for the re-
mainder Of the 12.month still Is gen.
orally admitted by sales directors.
Thus it ID that dealer organizations
throughout the country have been asked
by sales executives to forward detailed
reports on new-car inquiries rs well as
actual sales.
Expect Better Showing.
It is on the basis of these reports
that the industry's executives are be-
ginning to venture slightly more opti-
mistic opinions concerning the output
and distribution potentialities OF 1888.
All Of the industry's leaders, OF course,
expect the year to make q better show
ing than 1882, but the extent to which
production and sales NAV exceed those
Of last year will depend. they believe,
on improvement in most other key
industries.
For many years 1t had been a tradi-
ton Of the industry that 1t led the
way in and headed the way out Of in
dustrial depressions This was one OF
the traditions that had to be discarded
when high pressure sales campaigns and
price reductions failed to break down
the general buying resistance the motor
car industry found itself facing in all
directions.
Coincident with the moderate in
crease in new-car registrations during
the last few weeks, there has been also
an upturn in inquiries for used cars.
This, too. sales executives say, Is .
seasonal tendency. In general way
dealers are not worrying very much at
present over the used-car situation, al
though they have found In most In
stances the buyer Of last years model
or older vehicles has become fully as
discriminating IS the new car pur-
chaser.
On the basis Of output for the first
week in April, the months total should
be substantially above the 125,000- unit
mark, q noteworthy Jump over the ag-
gregate production for March. 1t Is
significant that two Of the leading pro-
ducers in the low-price field will ac-
count for approximately two-thirds OF
this total.
Schedules Adjusted.
The significance, according to the
trade, lies In the fact that the produc-
ton schedules are adjusted strictly to
demand and indicate a gratifying up
turn in retail prospects In the field that
somewhat bromidically has been called
the backbone of the automobile in
dustry."
The one discordant note that has
been heard in an otherwise hopeful
song Of the trade is the fact that de-
spite the emergency modification OF
automobile license requirements in
various States due to general economic
conditions. many hundreds Of thou
sands Of vehicles have been taken out
Of service temporarily
Many OF these vehicles are in dead
storage, IN public or private garages
As q factor in the true gauging Of the
replacement market possibilities they
are not being overlooked by sales exec
utives, who point out that the total
registration Of motor cars at the mo-
ment would show marked shrtnkage
over that of the like period q year ago.
At the same time. they explain. many
Of these temporarily stilled vehicles can
be brought out as trade-tn possibilities
on new-car purchases and with the
ultimate return Of buying power will be
absorbed either by the used-car deal
ers or the junk heap.