Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-03-09
CAR OUTPUT CUT
SHARPLY IN CRISIS
Industry Reduces Operations
Awaiting Solution of
Bank Troubles.
N the Associated Press.

y the Associated Press.
DETROIT, March "a sharp con-
traction of operations In many plants
was the immediate reaction OF the mo-
tor car industry to The proclamation OF
. Nation wide banking holiday. The
larger producers were little perturbed
BY the earlier declaration of State
wide moratorium and met 1t with an
nouncement of plans for setting up their
own cash disbursing Offices. Pay checks
we're cashed with funds brought in from
other States.
With the extension of the banking re-
strictions throughout the country, how
ever, most producers deemed it advis-
able to reduce output to a minimum
consistent with the maintenance of re-
duced working forces. Aside from the
matter of salary cash. some of the
manufacturers said they considered it
illogical to increase the stocks of deal
ers at time when the funds Of the re-
tailers were tied up by the bank holi-
day.
Agree Action Imperative.
Proposals for the issuance of money
substitutes found supporters as well as
opponents among the heads of the pro-
ducing and distributing divisions of the
motor car industry. In general, how
ever. the feeling seemed unanimous that
anything to start things going again"
was most urgently needed
Many of the industrys sales execu-
tives have held for many months that
the boarding Of money was responsible,
on Of retail sales. There will be no
boarding Of scrip or any other form of
money substitute, these executives say,
and the result of its distribution might
be mild stimulus to motor-car buying.
Definite statements as to the contin-
uance Of operations by the different
motor car manufacturers were with
held. 1T all depends" one executive
said. upon what solution is reached Of
the banking situation" Previously
heads Of two of the leading units of
the industry had said that operations
for the remainder of the current week
were assured.
Prior to the declaration of the bank
ing holiday in Michigan there was con-
siderable gossip in trade circles to the
effect that competition for business in
the low-price field would result in the
introduction shortly of two new low
priced cars. These cars, the gossip had
1t, would be brought out by leading pro-
ducers at prices lower than any now
on the market.
Reduced to Minimum.
As the story went, many gadgets and
accessories not essential to their opera
ton were to be eliminated from these
vehicles in order to scale the retail
price down to a new minimum.
Confirmation in part that such plans
were under way came with the an
nouncement by Chevrolet that a new
and smaller line to supplement the
present 1888 series, to be designated as
standard Skies" and priced consider
ably below the present range, will be
given initial showing this week end.
With one exception, every manufac-
turer in the low-price field now has q
car for virtually every established price
bracket, and the talk of new models at
q new minimum price emphasizes the
importance the low-price division holds
In the producers estimation.
Authoritative figures, based on regis
trations throughout the country, show
that last year almost 80 per cent OF all
cars sold were In the 81 900 or under
classification. In this division the cars.
selling for $500 or under made up more
than three-quarters Of the aggregate
volume.