Evening star., 1934-01-28
1884 IS VIEWED
WITH OPTIMISM
Sales Chief of Company
Thinks Outlook Now is
Brightest in Years.

while ! am not given 70 prOpnasy,
I believe the facts amply justify look
ing to 1884 with renewed confidence,
renewed hope and the conviction that
the progressive individual or company
has In prospect a considerably better
year than either of the past two," says
w, e. Holler, general sales manager,
Chevrolet Motor Co.
Certainly. the facts seem to Justify
such a conclusion as regards the auto
mobile industry.
I'VE have, first Of all, a changed
national psychology resulting from ag-
gressive administration leadership. This
Industry no longer has to battle that
peculiar brand Of sales resistance built
up through fear Of the future-fear OF
losing ones job or OF reduction IN
earnings hit the automobile in
that, we now have ageneral restoration
OF national confidence. People are
looking up instead Of looking back
Second, by reason of the existence
Of that fear and of the reduced ma
tional income since 1929, the automo-
bile industry faces a potential market
of pent-up buying at least as great as
the total output Of automobiles IN the
past three years. With the present
trend In economic affairs continuing.
fair share of that potential should
be realized in 1884.
Industry House Cleans.
Third, the automobile industry has
come through a pretty thorough house
cleaning. Everybody in it, from the
largest manufacturer to the smallest
dealer, has learned how to manage well
and intelligently. and how to maintain
an efficient organization on reduced
volume. AS a consequence. on any
bulge OF the sales chart, they will reap
a greater proportionate benefit than
they did even in the boom years.
For example, our own dealers,
through good management, made a
greater net profit for every new car
sold In 1888 than they did in any
year since 1927. The industry also is
healthier now than it has been for
years from the standpoint OF being
ready for the new years program.
Fourth, the huge public works pro-
gram has barely started and should
provide stimulus to the normal out
look. On the first of this year 80 per
cent of the five billions of appropria-
tions for Federal public works re-
manned, to be spent in the next three
years. Much of this money will find
its way into construction projects which
open up an abnormal market for trucks.
Other money Is finding its way into
pockets that went without pay checks
for several years. While the 4500O0O
men said to have been re-employed by
the first of this year may not be i'm
mediate prospects for automobiles. they
by the purchase of the basic needs
speed up wheels of industry which in
turn add to the incomes OF people able
to buy new cars this year.
Cars Need Replacement.
"Any number of detailed instances
might be cited to support these four
generalizations. We know. for example,
that the millions of vehicles built from
1927 to 1881 are now long past the
age of normal replacement and have
not been replaced. The combined out
put since 1929 is only half that num-
ber. Many of those old cars in 1884
will rattle their way to the junk yard.
We also know that during the past
two years 100000 cars were junked
and not replaced. We also know that
In the past two years five millions OF
young people advanced to the age
where normally large proportlon
would have purchased new automobiles,
and that they have not done so. The
opening up of any one of these stale
mated represented in those groups will
buy new automobiles this year, but the
gradual increasing purchases of each
group. as means allow. will help to
swell the years total.
1T seems to me- also, that a vital
factor bearing upon the years outlook
is a new spirit. better understanding,
prevailing within many automotive
organisations. The common problems
of the past few years have thrown the
various branches of the industry into
closer relationship. Everybody faced
the mutual problem of survival, and
out Of the dealings toward that end
came a better grasp of each others
troubles and more healthful and
sympathetic relationship. 1t means
that where such spirit prevails, an
organization will respond more quickly
and resultfully to intelligent and in
spired leadership"