Evening star., 1940-09-01
Auto Firms Cheered
As Output, Sales
Continue Rise
New Model Production
Should Be Third
Highest in History
BY DAVID ]. WILKIE,

DETROIT, Aug. 81. - Steadily
mounting production .. increasing
deliveries to dealers . a growing
accumulation of retail orders
employment expanding and only
a small part of a greatly enlarged
manufacturing installation yet in
use
That's the general situation of the
Nations motorcar industry as it gets
well under way with its new-model
production. With the possible ex-
ception of 1929 and 1886, the indus
try has faced no new-model year
with better production prospects,
despite the shadow of war, than it
does the impending II months.
In 1929 the automobile assembly
plants rolled out 5,621 ,O45 cars and
trucks; in 1886 they completed S.
016,437 Production facilities at
present are sufficient for consider
ably more than the number of units
made in either of those two years,
but, despite expectations of increased
buying power, none of the car
makers looks for quite 100000 We
hicleS during the l94l model year.
New Factors Appear.
At the same time, both the manu-
facturers and their sales executives
supplement their own claims with
the admissions that several new fac
tors have entered the 1941 model
year outlook to make estimates of
the total production somewhat diff
cult.
All are agreed that production and
distribution during the coming year
will be higher; they appear agreed
also that there are likely to be a
smaller proportion of "reposseSsions'
as a result of steadier employment.
Chief cause of uncertainty in pre-
dieting the aggregate volume of pro-
duction and sales during the year
ahead, the leading trade authorities
say, is the degree of acceptance to
beaccorded several new competitive
cars.
Nash has announced its intention
of entering the Ford, Chevrolet and
Plymouth price class" with a new
6-cylrder vehicle for which it claims
from 25 to 80 miles to the gallon.
Willys-Overland also has a new A.
cylinder unit, of standard size, which
it proposes to sell at a price below
the present lowest standard-size car
price. Studebaker has spent SIS .OOO,-
600 retooling for 1941 production.
Sales executives of both Nash and
WHY'S Overland are confident they
will take over a sizeable part of the
low-priced car field; at the same
time, trade authorities generally
agree that one of the most difficult
tasks in the industry is the promo
ton of an entirely new model, even
by an established manufacturer.
Defense Plans Watched.
Considerably before the 1941 model
season is over the motor car indus
trys executives expect to know to
just what extent priority for Gov
eminent orders for war materials is
going to interfere with their normal
manufacturing programs.
AS the situation stands at present
raw materials in abundance have
been available; whatever delay there
may have been in getting the 1e41
model units under way has been due
to normal developmentS-the tradi-
tional bugs that appear at the
beginning of almost every new model
year.
The car makers are virtually
unanimous in their expressed con-
viction that uninterrupted produc-
ton of vehicles is essential "if the
means with which to pay for the
huge rearmament program are to
be created" For that reason they
indicate their belief that every eff
fort will be made by the Govern
ment to interfere as little as DOS
sible with normal productive
activities.
Guessing at the probable produc-
ton volume during the final four
months Of the year, the trade au-
thoritieS are almost unanimous in
their figures-at least 1,250,0OO cars
and trucks. Most interesting about
that figure is the fact that it will
take care only of the accumulated
orders and dealers stock require
ments without materially building
up the reserve" the industry has
decided upon regardless of the
trend of spot demand.
In advancing this appraisal of the
immediate outlook for the industry,
the experts make the one reserva-
ton that "of course nobody knows
what the next four months will
bring in the European war, and it's
effect upon this countrys economic