Evening star., 1935-06-30
AUTO PRODUCTION
MAINTAINS PACE
Some Signs Of Lag Appear,
but Usual Summer SI.'713
Is Missing.
BY EDWARD w. MORRISON

BY EDWARD w. MORRISON.
Special Dispatch to The Star.
DETROIT, June 29-Automobile
production enters the month of July
at weekly pace only slightly under
100000 units
There are signs of declining output
in a scattering number of factories.
The usual early Summer slump has
not appeared, however.
July output, in fact. will hold above
the 100000 mark, according to all De-
troit estimates. At the current rate at
which factory assembly lines are
moving, 1t will approximate 350,000.
General Motors units are particu-
larly holding their stride. Chevro-
let has been striving the last two
weeks to reduce the huge bank Of
untitled orders that has defled pro-
duction efforts since last Spring.
Pontiac, at the same time, has been
moving cars of its assembly lines at
accelerated speed to catch up with
heavy orders. Oldsmopile sales have
been no less spectacular than those
of Pontiac.
Ford Stocks Larger.
There has been a slight let-up In
activity at the Ford plants. Ford
dealers, it appears, have larger stocks
on hand than either Chevrolet or
Plymouth. In the rural regions sales
have contracted to some extent, which
may account for drop in the Ford
sales index. This is believed to be
only temporary, however. The farm
ers right now are busy with their
crops and when early Fall rolls around
are expected to be back in the mar
ket for automobiles
The increased purchasing power OF
the farmer will be felt more this Fall
than at any time since 1880, in the
opinion Of automobile statisticians
Dealers attending two-day adver-
tising conference held by Chevrolet
were enthusiastic about the Autumn
sales prospects. They urged Chevro-
let officials to stage the same kind Of
advertising and sales drive that
year ago gave the company an impress
sive record for the second half Of the
year.
w. E. Holler. vice president and
general sales manager of Chevrolet.
analyzed some of the relative price
values for the dealers.
Two years ago" he said, 1T re-
quired between 80 and 35 hogs. weigh
ing 240 pounds each, to handle the
down payment on a Chevrolet coach
Ten hogs in today's market would do
the same job. Little less impressive
is the gain in the price Of beef. One
steer will make a payment which
would have taken nearly three steers
two years ago, and four 1,200-pound-
ers today will buy whole car"
The need for automobile replace
ments is heavier in the rural districts
than in any other part of the coun-
try. The statisticians point to the
number OF obsolete cars-many of
them as old as 10 years-that call for
retirement.
Liberal Allowances 10 Help.
The market for cars for the re-
Au0AAACl VI tAlC Pi W
be accelerated in the urban districts
by the liberal allowances offered on
used cars. Only three months ago
the dealers generally were complain
ing of heavy used car stocks. They
have already swung over to q policy
of liberal trades.
To some extent there has been i'm
provemen. in the used car market. In
the industrial areas particularly the
demand has picked up for sturdy used
cars. The jolt that sent most of the
dealers into revision Of their allow
ance prices was the abolition of the
dealer code. Competition became free
and open Immediately and the re-
strictions on allowances that had irri-
tated some of the dealers for 18
months we're gone.
A Nationwide price survey proba-
bly, would disclose that used car allow
ances are about $50 higher per car
than they were six weeks ago. Until
some kind Of voluntary agreement is
reached by the dealers. the prospective
car buyer who is willing to shop
around" will benefit, much as he did
before the N. r. A.
Copyright. 1851