Evening star., 1938-01-05

NEW HUDSONCAR
MAY DRAW RIVALS
ECONOMY Models" Believed
to Be ION Ice" Likely to
Be Offered Now.
BY ]. G. DONLEY
srecial Dispatch to The Star


BY J. G. DONLEY.
srecial Dispatch to The Star
NEW YORK, Jan. 5.-The an
nouncement Of the Hudson Motor Car
Co. that it will start production this
week on new car in the loWest-price
field may break the ice and release
those tabled economy cars" known to
be In. the blueprint or experimental
stage. At least one other "independ-
ent' motor manufacturer and two Of
the "big three" plants are reliably re-
ported to have such products ION the
ice"
1t is not yet definitely known wheth-
er or not the new Hudson product will
be priced under the Ford Chevrolet
Plymouth price range Willys-Over-
land Motors, Inc, really started the
lower-price bee buzzing in the car
market with its quotations ranging
from $499 for an economy" coupe to
$7l5 for its custom sedan-those prices
being exclusive OF Federal and State
taxes, delivery charges, ETC., at Toledo.
The price range for the big three"
Is from $645 to $648 for standard
coupes of the various makes to s793
to $803 for the highest-priced numbers
in the big three" lines-the de luxe
four-door sedans. Those prices are
quoted in the factory cities, including
Federal excise taxes and the standard
accessories of the three standard lines
and the de luxe accessories of the three
de luxe lines, but excluding State sales
taxes.
Former Model Chopped"
The low-priced Willys was intro
duced in the late autumn of 1896,
following reorganization Of that COM
pany, which had experienced acute
sales difficulties as the result of a
previous essay into the lowest priced
field with an ultra-modern model
which did not take" About 10000
of the new Willys cars, decidedly
successful model, were turned out in
the first year of production account
ing for 1.3 per cent OF the total do
mestic passenger car market during
the industrys show -to-show 1897
model year.
Willys underpriced the big three"
and showed the industry new things
in economy of operation-mileage per
gallon of gas The Hudson announce
ment leaves price and gas-ability
open. but says that "the new car will
measure up to every tradition of low
est price cars in economy of owner
ship and operation" Formal an
nouncement of details will be made
during the first week of February.
1t is being pretty generally taken
for granted. however, that Hudson will
match the price of the Willys. putting
two cars in the field under the price
ranges of the big three" If that
proves to be the case it will be
pretty fair bet that the move toward
lower prices in volume lines will be-
come general and competition will
become hot and heavy.
The significance of such a move
ment would be that it would create
a new price range below the lowest
previously existing. New lines of
economy cars" would not replace the
former models in what was previously
the loWest-priced field. Instead. thev
would be regarded as supplementing
the lines now in production. The ef-
feet OF the lower price range. of
course, will be to broaden the base
OF the neW-car market and capitalize
for the benefit of factory production
and employment a portion of the de-
mand which has for a long time been
filled by the cast-off cars of those
able to afford higher-priced vehicles.
Steel Cost About $50.
Contrary to general belief, lower
steel prices are not needed to make
economy cars" practicable. The cost
OF the steel in the average car is
around $50. so that if steel prices were
cut in two and that materia! were
sold below the cost of production, the
result would be reduction of only
$40 in the price of the average car.
The American Federation of Labor
figured average labor costs per car as
Sl84 in 1896. against S2l2 in 1884, and
even allowing for higher hourly rates
this year, the labor cost is not too high
when it is spread over volume pro-
duction.
The answer to the problem of pro-
ducing car within the reach of the
submerged market. which for several
years has had to supply its needs
from the used-car stocks, lies in de-
sign geared to the function of low
cost transportation and in horsepower
geared to the needs of efficient opera
ton rather than luxury ideas. With
plutocratic ideas on the poWering of
a motor car, we have been prodigal
with our gasoline because in America
1t is very plentiful and relatively
cheap. The lack of economy is most
evident when, reduced to used-car
status, the high-powered luxury models
sift down to owners who cannot afford
to run them
(Copyright, 1881