Evening star., 1933-02-05
AUTO HELD MORE
FIRMLY INSTALLED
Successful Resistance Made
to Forces of De.
preston.
BY ALVAN MACAULEY,
resident OF National Automobile Chamber
of Commerce

After three years of successful re-
sistance to the destructive forces re-
leased by the depression, the motor
vehicle today is more firmly entrenched
in American standards of living than
ever before.
Despite the fact that the number
of vehicles in operation at the present
time is substantially lower than 1t has
been at any time during the last two
years, factual evidence will support the
accuracy Of this statement.
| Today the ranks o. the automobile
! industry are advancing for their new
sales offensive. Their greatest inspira-
tion at the present time is the knowl-
| edge that not only has average unit
operation Of all the vehicles In this
country been maintained but that a
perceptible increase in their operations
has taken place.
In other words, motorists and owners
Of commercial vehicles during the last
year made greater average use OF the
| highways than they did even during
the record year of 1881.
| An examination of gasoline consump-
ton records, which provide the most
satisfactory index of the extent to
which highways are being used, and Of
motor vehicle registration figures from
the individual States, proves conclu-
sively that the average per vehicle
mileage travelled during the last year
was greater than it has ever been at
any time in the history of the industry.
| What more convincing evidence could
there be Of the unwillingness OF Ameri-
can families and business enterprises to
curtan their use Of the products Of our
industry? Naturally 1t Is source Of
considerable qualification to our manu-
facturers to have this proof that the
American motorist has been using his
vehicles, and incidentally, wearing them
out faster than ever before even
though he has not been buying as many
cars for replacement purposes as he
would under normal conditions.
1t should also be source of inspira
ton to the legions of investors and
wage earners in industries which are
dependent to any substantial extent
upon the automobile for their prosperity.
Requirements Needed
Preliminary estimates place the num-
Der of passengers cars in service during
1882 at 21.045,000 units. With the
value of these vehicles estimated at a
total Of s4,500, 100000. the average of
each car now in use is only slightly
| more than 5000.
With more than 20 per cent of the
vehicles in use today now more than
seven years old-the age at which the
average car has outlived its usefulness
a vast replacement market is indicated.
Early retirement of great many OF
these cars from service, along with
large number of others which must be
discarded before completing the average
car life Of seven years, may be antici-
pated
The question as to whether or not the
industry Is justified in anticipating the
early or eventual replacement Of worm
out vehicles has been answered, I be-
lieve. before In this article.
| Average per vehicle operations would
not have increased steadily during the
last three years as they did if it had
not been for the fact that the bulk of
| highway traffic is in the performance
of indispensable and essential trans
portation services.
For the most part. ownership Of motor
vehicles today is justifiable as a neces-
sity. The modern tempo Of business
and Of life in this country would not
tolerate a return to the orse-and- buggy
era.
Relationship Study.
| Another approach to the considera-
| ton Of this replacement market is af-
forded by studying the relationship be-
tween the output of the industry in
1882 with the total motor vehicle regis
tration for the entire country during
the last three years
| Although 1,250,000 units Of the motor
industry's output last year were abb
sorbed in the domestic market, motor
vehicle registrations In the United
States were l 100000 units less at the
end of the year than they were at the
end Of 1881, and they were approxi-
mately 2,25000 units under the num-
ber Of vehicles registered at the close
of 1880.
This would indicate that there are
many families or business enterprises
which no longer enjoy the advantages
of motor vehicle ownership. to which
they have once been accustomed. How
ever, there is no reason to believe that
this situation reflects a waning inter-
est in, or desire for, automobile owner
ship.
The explanation that this decrease is
cue probably to prevailing business con-
ditions seems more logical. 1t is not
likely, nor is it to be expected. that any
large proportion Of these families which
no longer possess automobiles will be-
come prospects for the industry's new
cars in the near future. However. 1t
soon as circumstances permit most of
them will purchase used cars, thereby
enabling the original owners Of these
vehicles to become prospects for the
purchase of new automobiles.
| This indicates a process whereby,
| through two or more transactions, the
purchase of low-priced used cars might
we'll result in the ultimate sale by the
industry of as many new cars.
| Internal Strength Shown.
In some respects the industry has
never exhibited so much internal
strength as it does at the present time.
This applies particularly to the ex-
tremely wholesome condition Of our in
ventories of new stock In dealers sales
rooms.
Not since the war has the industry
emerged from a years operations with
close of 1882. One company's dealers
sold 10000 more new cars during 1882
than were shipped to them by their
factory.
| This means that the industry will be
able to proceed Immediately with the
sale of it's new cars without being en-
numbered by the necessity Of selling
them in competition with a large guam
tity of last years models offered at re-
] duced prices.
| OF its 1892 output, 1,198,500 units
we're passenger cars and 237,500 units
we're commercial vehicles. The whole
sale value Of these vehicles u estimated
at $784, 100000, which indicates q de-
crease of approximately $43 in the aver
age retail price per unit. The output Of
tires, parts and accessories raised the
value Of the industry's total production
for the year to 81, ,309, soc, 900, exclusive
of gasoline consumed In the operation
of motor vehicles, estimated at $685.
O0O, 900, and lubricating oil, estimated
at $3.50. 100000.
Although the reduced volume of car
buying affected employment operations
at automobile factories adversely, nev-
ertheless highway transportation,
through the many industries which are