Evening star., 1940-10-15
Short-Term BUYING
Policies Continue
Al Auto Plants
Steel Makers Unable
To Convince Buyers
Change Is Necessary
Special Dispatch to The Star.


DETROIT, Oct. l5.-Despite uni
versal optimism that automobile
sales will continue at record pace,
the automobile industry is not max
ing long-term commitments for ma
terials, according to Rupert lie
Grand, Detroit editor Of American
Machinist.
Steelmakers, for example, have
attempted to convince purchasing
agents that it would be wise to give
definite orders to cover the bulk OF
the model run, so that the mills
can fit automotive requirements into
their heavy rolling schedules TO the
best advantage.
One of the arguments advanced In
support Of this proposition is that
priorities for national defense may
interfere with deliveries later on,
and that with definite orders on
the books the steel industry could
anticipate priorities for the sake Of
its best customer.
These pleas have met with little
response, says Mr.. lie Grand. Orders
are current only for the steel con-
sumption anticipated within the
next 5000 days OF course, he points
out, one of the most potent levers
toward huge initial commitments
that of price slashes to feed hun .
cry mills-is absent this fall. While
it is true some fat-rolled business
was taken in the summer months
for less than stated prices, that ton
mage was quickly rolled and shipped.
Since then the orders have been
taken at full price without question.
and there have been no squawks
over raising the price Of alloy steels
few dollars per ton. :
Sales Trends Watched. I
Automotive purchasing agents are,
more interested this season in the.
outlook for late fall and winter
sales of the l94l series than in the
more remote questions of possible
priorities, price and available sup
ply Of raw materials next spring
when the full impact of the defense
program will be felt.
Their present policy of placing
orders for normal supplies is die
tated by that of top management.
The Chevrolet general manager, IN.
speaking on production plans for
the balance of the year, said that
Chevrolet will produce at rated ca
pacity of 5000 cars daily until in
itial demand is satisfied, dealers are
we'll stocked and the continuance
of demand can be appraised from
short range.
With steel covered until the year
end, it will be several weeks before
new buys are made. thereby indI-
eating what the automobile COM
panies think of production posi-
bilities in the first quarter.
1t is anybodys guess what the
situation will be next March when
purchasing agents must make buys
10 complete the model run. Some
Of them privately express fears that
priorities or shortages OF supplies
may interfere with production, or
that prices will be sufficiently higher
to force an increase in car prices at
that time. Yet the national defense
program is unlikely TO require more
than 10 per cent of the Nations
steel capacity in the opinion of lead
ing steel operating men. And the
steel industry is making such good
profits at the present rate of oper-
alton that it is unlikely to go
counter to public opinion by rails
ing prices except where shortages
Of alloys dictate such a move.
Demand Best in Years.
Automobile sales during Septem-
ber show large gains over the same
month last year. Chevrolet dis
posed of 47.363 cars. a gain Of IS
per cent; Pontiac, 1868, gain Of
696 per cent. giving that company
the largest September since 1928;
Buick, 23957, up 1886 per cent.
These gains are spectacular but
they do not represent true
measure of the public's reaction to
the 1910 and l94l models respec-
lively, because announcement Of
new models occurred several weeks
earlier this year.
Cleanups of outgoing models we're
universally the best in recent years.
A survey of several leading makes
disclosed that at announcement
time for the respective makes, 1940-
model stocks ranged from less than
one to two cars per dealer, and most
of these were demonstrators. Used
car sales continue strong.