Evening star., 1934-03-11
CAR OUTPUT LAGS
BEHIND ORDERS
Industry Faces Difficulty in
Obtaining Needed Raw
Materials.
BY DAVID ]. WILKIE,
Associated Press STAFF Writer.

DETROIT, March 10.-With an ac-
emulation of untitled orders on hand
sufficient to require full-spesd factory
operations for the next several weeks,
the motor car industry finds itself to-
day in the position of being unable to
catch up with retail demand, due
largely to difficulty encountered in OBJ
tanning raw materials.
A slight increase in production VOL
ume was noted during the current
week, with an estimated 73,600 units
running off the assembly lines, but
the upward trend has not kept pace
with the demands from retailers. Ex-
act figures on the number of orders
remaining to be filled have not been
made public, but the accumulation is
expected to continue ahead of pro-
duction throughout March and large
part of April because of an apparent
certainty that the producers will not
be able to obtain materials this month
in the desired volume.
Material Shipments Lag.
Grams Automotive Reports says
that 10 companies recorded increases
in output during the current week,
while seven reported decline and
three plants were closed. one-the
Nash Motors-as a result of labor diff
fculties.
Barring labor troubles. which have
been threatened during the last week
in several plants, the March total
output has been estimated at $40 900
cars and trucks, which would be 172
per cent over March of 1888. 1t rep
reSentS, however, a downward re-
vision by number of manufacturers
in their original March schedules, due
to the expectation that material
shipments will remain considerably
below needed quantity.
Although official comment has been
withheld generally by motor car
makers, differences between the auto
mobile and steel industries over the
price Of materials are said to figure
to no small degree in the difficulties
Of getting into high-speed car produc-
ton. Some authorities in the motor
car industry, while declining to be
quoted by name, have said that pres
ent price scales cannot be maintained
for automobiles if material costs
continues to increase.
Discounts Forbidden.
Some motor car executives are
known to believe that the industry,
as a major consumer of steel and iron,
should be allowed a discount on large
purchases. This is forbidden by the
N R. A
Because of its highly competitive
nature, the motor car industry, in
the midst Of a recovery movement, is
reluctant to increase prices if that
action can be avoided.
Commenting upon plans Of the Ford
Motor Co. to construct a blooming
mill. continuous hot sheet mill and
cold rolling mill as part of its
steel plant expansion program, the
Michigan Manufacturer and Financial
Record in its current issue said:
Under provisions of the steel code
companies in that industry cannot
build new steel-making capacities, but
the automotive industry itself is not
limited by any such agreement 1t
Is considered highly probable that
steel manufacturers will seek modifi-
cations of their code to allow them to
81 dIlG CeIldlIl CONCESSIONS 10 large pur-
chasers. They fear that if other
large automotiVe manufacturers fol-
low the lead of Ford and set up steel
manufacturing plants in the Detroit
district, price structures will be upset
and the Pittsburgh, Chicago and
youngstown steel mills will suffer
materially from the new enterprises
in Detroit"