Evening star., 1941-11-16
Car Makers Huntinq
Customers Despite
Scarcity Ahead
Price Rise and Fears
Of New Materials
Slow SuIes
BY the Associated Press.

by tllS aSSDtldleC fTtSS.
DETROIT, Nov. l5-The men
who build the Nations motorcars
are engaged in a major campaign to
sell them despite the limited produc-
ton schedules under which they are
operating this model year and the
certainty of a future scarcity Of new
vehicles.
Higher prices. increased taxes and
the much -talked-about use of alter
nate materials in this years models
are. according to authoritative trade
sources. the psychological factors
responsible for the slow movement
of the new vehicles. Abnormal buy
ing through most Of the last model
period probably also is reflected to
some extent in the sales lag.
All these elements. however. offer
no guarantee against further in
creases in retail prices, some Of the
manufacturers and sales managers
have indicated.
Rise Barely Absorbed.
Thus far there has been no sug-
gestion that passenger car retail
prices might be frozen at current
levels. The attitude among the man
ufacturers generally is that the re-
cent retail advances. which Tor the
most part range upward OF SloO a
car barely absorbed increased pro-
duction costs and taxes. Price ad-
yances were held down as much as
possible, for competitive reasons.
1t has been the unfailing expe-
rience of the Nations automobile IN
dustry that ever price increase mas
been followed by widespread sales
resistance. In one instance several
years ago an increase announced
throughout the industry in MD
season brought sales almost to a
standstill. AS result the advance
was Cancelled within month.
Generally, trade authorities be-
lieve this years price increase ano
a misunderstanding concerning tne
use of alternate materials have been
the chief causes of the sales SLOW
down thus far The increased taxes
while adding to the delivered prices
are rated last among the sales re-
tarding factors.
Quality Is Stressed.
The campaign to sell the ne"
models thus is giving major con,
sideration to pricing. present ano
nrospective, and to frequent relt-
Grafton of the assertion that the
effort to conserve materials for de-
fense has taken nothing from the
quality of the new vehicles. So TAI
&c nrices are concerned, sales exec
utives point out that even II an IN
crease can be avoided next spring
it will be a long time before cars OF
comparable quality will be any
lower in price.
Despite the plans the various
producers worked out for appor'
tioning new-car output among deal
ers on the basis of percentage o.
each retailers 1941 model sales, 9
fairly wide. if not liberal, stocking OF
the merchandising outlets has beer
attained. Certainly there nave
been few reports of dealer inability
to fill orders.
That is, however, the situation
most of the manufacturers eXpecl
to see develop within the next four
or five mouths It will appear even
earlier, they say. if materials short
ages force passenger car production
to halt.
Some Storing Reported.
While it may seem somewhat
paradoxical that so much sale!
pressure is being exerted now II
the face of a certain scarcity latel
in the model year, the manufac'
| turers believe the existence of thell
sales outlets depends to a large ex
tent upon steady distribution ac
tivities while vehicles are available
and sustained contact with ca
buyers.
There have been some reports o
new car storing in some sections
but only to limited extent, accord
ing to factory authorities, whit
frown upon such practice. I
these vehicles are being held agains
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