Evening star., 1940-12-08
Automobile Makers
Prepared 10 Meet
Defense Demands
Small Surplus Of Cars
Is Cushion Against
Emergency Needs
By the Associated Press.

3y the Associate Press
DETROIT, Dec Having geared
production facilities at level
slightly higher than consumer de-
mand since the new model year
began October l, the motor car in
dustry now has all its dealer out
lets stocked with passenged cars
and a modest accumula ton, of re
serve" stocks under way.
This is entirely in accord with
the car makers plans when they
swung into 1941 model output, al
though most of them are convinced
that the normal productive activi-
ties of the industry can be carried
on regardless of the demands Of
the national defense program-for
the present model year at least.
The building up of a surplus at
this time has been described in
some authoritative quarters as
logical" step in the planning of
the current model year The nor
NAL production facilities of the
industry are considerably more flex-
ible right now, it is pointed out,
than they will be once armament
manufacture gets into full swing.
Several Factors Studied.
That, of course, will not be dur
Ing the present model year, but
some of the manufacturers believe
its initial effects-whatever they
may be-must make their appear
ance in the next few months. There
may be shortage of raw materials
and the diversion of skilled labor
from normal to emergency activi-
ties or an upsurging demand for
new cars resulting from increased
employment, or a combination OF
al these fatcors.
In any event, say the trade au-
thorities, reserve stock of new
cars will be a distinctly helpful
cushion" for whatever develops be-
tween now and midsummer.
Last spring the industry had on
hand one of the largest surplus
stocks of new cars in its history,
nearly half million units in addi-
ton to vehicles in dealers hands.
Yet 1t was lquidated rapidly under
seen by the manufacturers sales
managers. Fears that the armament
program might interfere with new
car assemblies stimulated retail de-
mand during the latter part of the
1910 model year.
Arms Program Comes First.
Some of that apprehension still
exists, but in considerably lesser
degree than was the case eight
months ago.
The car makers have said much
concerning the importance to the
national economy of maintaining
normal productive activities at high
level despite the huge rearmament
undertaking. At the same time they
have made it clear that the arma-
ment program comes first.
1t is interesting in this connec-
ton to recall some of the production
achievements of the industry. In
1929 its assembly plants turned out
5,621,O45 cars and trucks. Approx
mately 100000 of that total were
made in three months. 1t was said
afterward that had the occasion
required it the assembly plants could
have produced twice that number
of vehicles.
1887 Another Big Year.
The industry had another 5000 900
unit year in 1937-the volume was
5,O16,347 to be exact-and its pro-
duction facilities were only partly
engaged.
Since the beginning of the current
model year it has been operating on
schedules that would produce ap-
proximately 5500,00 cars and trucks
if maintained until next September
30. There is no expectation of that
volume for the 194l model year; the
estimate, which includes some hope
as we'll as expectation, ranges from
100000 to 4,650,000.
1t is significant, however, that the
present high rate of output has been
maintained with few plants working
more than two 8-hour shifts five
days week.