Evening star., 1934-01-28
AUTO TRADE GAINS
IN 1884 FORECAST
n. A. c. c. President Cites
Many Grounds for Optimism
as Industry Speeds Up.
BY ALVAN MACAULEY,
President National Automobile Chamber
Commerce.

BY ALVAN MACAULEY,
President National Automobile Chamber Of
Commerce.
Many factors combine to form the
sound foundation which supports the
leaders of the automobile industry In
their optimism over the business out
look.
In 1888 an expanding market per-
mitted the industry to make and sell
more than 2OOO, 900 passenger cars and
trucks, and this output, representing an
increase of 43 per cent over the previous
year, Is In itself assurance that the bot
tom Of the depression is buried in the
security OF the past.
No one who will take the time to in
spect the new models which the In
dustry is bringing out for this years
campaign will be likely to wonder as to
the attitude of car manufacturers on
the business outlook. These testify by
the many important improvements and
innovations found on them to the con-
fidence of their makers that business
will continue to improve.
Advertising Reflects Spirit.
Study of the expenditures being made
by the industry on its advertising re-
vesls additional evidence of the car
makers optimism. The Editor and Pub
in November showed the automotlve
classification ahead of all others, with
space purchases which, for the last hall
Of the year have been running about 81
per cent ahead of last year.
Some of the important considerations
from which leaders of the industry are
deriving encouragement are:
l. The expansion Of purchasing power
throughout the United States as the
result of industrial recovery, civil works
and farm relief programs.
2. The restoration Of confidence In
the stability of the country's financial
structure.
g. The growing recognition by legis-
lative officials of the folly Of excessive
motor vehicle taxation.
4. The improved status Of the indus
try in its export markets as the result
OF monetary readjustments.
S. The extension and Improvement OF
highway facilities, both in the United
States and in foreign countries.
Rail Attitude More Liberal.
8. The growing tendency of railroad
leaders to adopt more constructive
attitude toward motor vehicles as q
necessary adjunct of the Nations
transportation system.
The improvement registered by the
motor industry is due in no small meas
ure to the reeourcefulneSs, courage and
initiative which characterized the in
dustry's activities during the last four
years.
Any one questioning the modesty Of
this statement will soon satisfy himself
as to its accuracy, think, If he will
only compare some Of the new 1894
vintage Refinements and mechanical
features have been added without num-
ber, while apparatus and devices which
four years ago were to be found only
on the highest-priced vehicles have
come into almost universal usage.
In many respects the industry is in
Q much more wholesome condition than
1t has ever been. For four years the
manufacturers have been concentrating
not only on the improvement Of their
product. but also on the improvement
OF their internal organizations for the
more efficient production and distribu-
tion of motor vehicles. AS in the past,
the consumer will benefit from the
Production costs have advanced so
much as the result of the recovery pro-
gram that number Of automobile
companies will not be able any longer
to postpone increases in their prices.
Cost Limits Are Sought.
However. it is the determination Of
the industry's leaders to keep these
Increases at minimum to reach as
wide 4 market as possible and thus
gain for their employees the maximum
OF work opportunity.
Some indication Of the extent to
which labor benefited from the indus
try's compliance with the national re-
covery program Is offered by a state
ment which Gen. johnson made re-
Gently. Compared with July (the
month before the industry's code be-
came effective) September showed a
16 per cent advance in pay rolls and
an per cent spread in the number
OF workers employed by the automobile
industry. This was in spite of the fact
that. due to seasonal influences. there
had been sharp drop in the industry S
production schedules. The record is
even more significant when 1t also is
recalled that most Of the automobile
companies had voluntarily increased
wages In June and July.
Having pioneered the principle of
high wages, the industry naturally is
gratifed at the prospect that other
Industries will be expected to elevate
the living standards of their employees.
Retirements on Increase.
Although sales of motor vehicles
showed such a substantial increase last
year. the number of motor vehicles
purchased failed by approximately
100000 units to replace the number
OF vehicles which were worn out and
retired from service during the year.
With falling off in motor vehicle
registrations for the two previous years,
It is estimated that there are, roughly,
2,750,000 families or business concerns
IN the United States which no longer
enjoy tn, advantages and convenience
OF motor car ownership to which they
once were accustomed
We are satisfied that these persons
want motor cars just as much as they
ever did and that they will buy them
aS soon as their financial position war
rants. This group, together with the
unnumbered millions of other families
who have not been able to indulge
their normal desire for newer cars. con-
stitutes vast potential market-the
immediate target of the industry's 1884
sales campaigns.