Evening star., 1934-06-03
MOT0RCAR
OUTLOOK PROVIDED
Production First 5 Months
Considered to Be About
Normal"
BY the Associated Press.

BY the Associated Press.
DETROIT, June 2.-Entering the
normally slack midsummer season, the
automobile industry continues to pre-
sent an encouraging outlook to the
general economic situation.
While admitting the first fve
months Of the year developed some
disappointments, the industry lead
ers generally are agreed that produc-
ton and distribution during that
period more nearly approxlmated
what has come to be regarded as
normal than they have experienced
for three years or more.
Among the disappointments noted
was the sudden leveling of Of con-
sumer demand after heavy accumu-
lation of untitled orders at the begin
ming Of the year had been absorbed.
This resulted in downward revision
of original estimates Of the years
total production.
Predict 3,500,0 900 Units Output.
In the enthusiasm growing out OF
the piling up Of orders faster tran
the assembly lines could I'LL them in
January, sales executives and some VI
the manufacturers themselves pre-
dicted an output for the year OF
around 100000 units. More recent
estimates, based on sales figures and
field surveys during the Spring sea-
son, place the aggregate production
this year at between 2,500, ,0G0 and
100000 passenger cars and ,rucks.
Not a few of the leading producers
appear to believe that while leasonal
influences will cut into distribution
during the latter part Of June, the
recession during the remainder of the
Summer and Fall will not be nearly
so precipitate as in other years since
the boom period of 1929.
This belief is given tangible express
sion in the action Of several pro-
ducers in bringing out lower priced
models, and other producers are
known to be considering similar
action. At present they are surveying
the feld with a view to quick in
production of the lower priced types
as a means Of absorbing whatever
demand may be developed for cheaper
types between now and the time for
presenting new models Of their stand
ard lines.
There is every present indication
that new model work throughout the
industry will get under way much
earlier this Fall than was the case
with the 1884 types. Whether the
new model work of a large part of
the industry will be put under way
simultaneously, however, is somewhat
uncertain.
Guided by Consumer Demand.
Just as many makers at the mo-.
ment are studying the market to
determine whether lower priced edi-
tions can be presented profltably
during the next few weeks, so will
other producers be guided largely by
consumer demand during August and
September in determining the date
for swinging over to 1885 standard
lines.
Encouraging factors seen by motor
car makers have to do largely with
field reports of a healthier general
condition rather than specific figures
on sales or potential sales in any one
or more localities. The distribution
division executives also point to the
success that has been met in holding
production to potential consumer
requirements.
The fact that there is no sizeable
surplus to be absorbed during the
remainder of the Summer Is regarded
as one of the most gratifying factors
contributing to the position Of the
industry as it enters the usually slack
season that begins with the month of
June. -