Evening star., 1933-06-04
SURPLUS REDUCED
IN AUTO INDUSTRY
Despite Increased Car Sales
No 0verproduction Is
Predicted.
BY the Associated Press.

DETROIT, June 3.-Although the
motor car industry during the last two
months has produced and sold more
vehicles than in any similar period Tor
approximately a year, there is no dan
ger, production executives say, that a
heavy surplus will be stored up.
The industry had one sad experience
with overproduction and its leaders in
tend there never shall be another oc-
casion for a heavy carry-over.
Production is not exactly on "hand-
to-mouth" basis, but it is being very
carefully controlled and any variation
upward or downward in retail demand
will be almost instantly reflected IN
like alteration of production activities.
5,6O0,000 Units in 1929.
IN 1929 the industry produced more
than 100000 units and began the de-
preston period with an over-produc-
ton of more than 100000 vehicles.
All of these had to be disposed OF In
falling market throughout 1880, during
which time the output of new cars
totaled 3,510,178 units.
other authorities In the industry be-
lieve the recovery period was delayed
by the heavy surplus that went over
into 1880, and by the fact that factory
inventories could not be curtailed
quickly enough in the first year fol-
lowing the collapse of the market.
While there will be an excess OF pro-
duction over distribution it will be only
the nominal margin required to keep
dealers stocks up to current needs.
The industry has so revised its pro-
duction facilities and practices that 1t
now boasts an elasticity which its heads
believe will enable it to meet whatever
demands may be made upon it, small
or large. For this reason, If for none
other, the industry's production engi-
neers are endeavoring to avoid any
excess production consistent with COM
petitive manufacturing policies.
The most authoritative predictions
available concerning the duration OF
the current upward tendency in produc
ton and sales indicate that output in
June, while it probably will develop
some recession, will not be sufficient
to prevent the months volume from
exceeding that of June, 1882. The
same sources predict that sales in
June "are almost certain to exceed
May"
Estimates for May.
Final official figures on distribution
for the month just ended have not yet
been compiled, but estimates based on
careful analyses of the registration OF
new cars in various key States range
from 155, 900 to as high as 10000 units.
The motor car industry's executives
are finding much for encouragement
and qualification in the sustained in
crease in output and distribution dur
ing the last eight or 10 weeks, but
they are reluctant to say positively that
the return to better times has begun.
The feeling of producers generally
was perhaps best outlined by Alvan
Macauley, president of the National
Automobile Chamber of Commerce, in
letter he addressed few days ago
to Michigan member of Congress in
Washington.
Il am glad to be able to advise you"
Macauley wrote, that the outlook for
the motor car industry at the moment
is somewhat more hopeful Whether
this is merely seasonal or actually in
dicates that we are moving upward
from the bottom, it is a little too early
to say. But I am quite hopeful"