Evening star., 1940-04-19
Auto Firms Produce
More Than 10000
Cars a Day
increased Consumer
Demand Shows No
Sign Of Easing
BY DAVID J. WILKIE,

DETROIT, April 49, More than
10000 Nassenger cars and trucks
continue to roll daily from the mo-
tor industry's assembly lines, while
upsurging consumer demand, amaz-
Ing to manufacturer and dealer
alike, shows no sign of easing.
This level Of production appears
likely to be maintained for the re-
mainder of the years second quarter,
but without material expansion dur
Ing the rest Of the current model
year.
In some quarters the trend has
been interpreted as an approach to
the much desired stabilization of
production and distribution. but the
fact remains that the steadiness Of
consumer demand at this period ex-
ceeds the expectations of botn
manufacturer and distributor.
The industry, through the appli-
cation OF controlled production"
policy, long has sought to level off
the peaks and valleys in the annual
output programs, with only a degree
OF success. There are few among
the industrys leading observers who
believe a completely effective sta
billzation can be attained.
Take Full Advantage.
Trade authorities currently are
devoting much speculative thought
to the probable duration of the cur.
rent heavy demand for new car de-
llveries. Many of the carmakers
counted upon potential" as we'll as
actual demand and kept their as
sembly lines at high levels through
out the first quarter with the result
That they have been able to take full
advantage of the retail upturn.
Currently the manufacturers are
using the sales reports each day as
their guide in fixing production
schedules. Thus far these reports
continue to show an increase In
consumer requirements.
The most widely held guess as to
the life OF the present sales move
ment Is that 1t will not begin to
shrink much before the calendar
year Is half over. At the present
rate OF production the industry's as
sembly plants by that time will have
turned out. something like 2,700,0O
cars and trucks on this years
schedule
Allowances a Problem.
One disturbing factor in the pres
ent situation is the tendency among
some retailers to bid for new-car
sales with excessive allowances on
old cars. This tendency, say many
authorities in the industry. ir1yari-
ably develops with any major ex-
pansion Of new-car demand. On
many occasions it has frozen" con.
siderable dealer capital and forced
some retailers out Of business.
AT present, however, the dealers
are reported to be finding little dif-
nculty IN quickly turning over their
used-car stocks. If the retailers can
come to the end of the present heavy,
wave OF retail demand without A
large accumulation of used vehicles
on hand little dealer mortality is
likely to result.
Automotive News. in its current
mldweek survey Of the industry, es-
inmates production this week at
l05,6s2 cars and trucks. Last weeks
output was placed at lO3,853 and
mat for this week a year ago was
wards automotive reports todav
esumated the combined output Of
United States and Canadian auto
mobile plants this week at 103 725
cars and trucks. The revised total
1or last week was O1,940 units.
Assemblies this week a year ago
numbered 90,280, the high point of
the 1899 spring season.