Evening star., 1941-04-03
Auto Firms 10 Beqin
Tapering Off Output
In Few Weeks
Big Reserves Regarded
As Adequate to Meet
Defense Emergency
BY DAVID J. WILKIE.
Associated Press Automotiye Editor,

car industry. having produced more
than 100000 passenger cars and
trucks in the first six months of
the l94l model year will begin to
taper of output within a few weeks.
The whiting down of production
volume will come for a variety Of
reasons. First, the current produc-
ton pace is out of all proportion
to consumer needs even under the
stimulus Of uncertainty regarding
the availability of new units after
the industry's factories have reached
the peak of defense output.
High level assembly plant activity
of the last few months has kept
ahead of the unseasonal volume of
new-car demand and the accumula-
ton of unsold 1941 models now is
estimated at well above the 500, 900
mark.
In maintaining the production
levels of around $4,000 to 10000
vehicles a day over the most ex-
tended period in its history, the
industry has used considerably more
raw material than perhaps nor
mally would have been consumed
Slower Pace Expected.
Despite all the factors Of uncer-
tainty regarding production restric-
tions later in the year, there are
very few among the trade authori-
ties who expect the assembly plants
to roll out another 100000 cars
and trucks in the second quarter
of the year.
Hopes and expectations of the mo-
tor car manufacturers when they
started the present model year last
October l were centered around an
aggregate production of 100000 to
4,700 900 of the 194l models. Whether
the assembly lines will yield that
many vehicles by October l is mat
ter Of guesswork.
Many of the larger producing fac
tories probably will wind up 1941
model output early in July; a few
others may continue until mid-Au-
gust. The duration Of the suspen-
sion of actitivies between seasons
will depend mainly upon the avail
ability of raw materials and plans
if any, for a fixed production sched-
ule during the remainder of the cal
endar year.
Costs to Increase.
In it's initial phases work on new
models in August and September
will be somewhat slower and conse-
quently a little more expensive, as
some Of the production engineers
anticipate it. They point out that
the various operations connected
with the utilization of alternate
metals will be either entirely new
or involve the use of processes re-
curing more machining time.
1t appears to be generally agreed
among trade authorities, however,
that even If there is balancing up
in manufacturing processes to make
the unit production time approx
mately the same as that involved in
assembling present models, any
sharp reduction in output volume
will make the maintenance of cur
rent price levels extremely difficult.
The industry relies upon large VOL
ume distribution and small unit
profits.
Strike Cuts Output.
Production of automobiles and
trucks this week will decline to 107,-
ITO units because of the strike at
the Rouge plant of the Ford Motor
Co, Automotive News said today II
its weekly survey of factory activity
Output last week, the publication
said, was 1880 vehicles while ir
this week a year ago 104,749 were
assembled.
Automotive News estimates showed
that a new record high production
mark for the industry was set in the
first quarter of this year when L.
55l 029 new cars and trucks were
assembled. This compares with the
previous high of 1,546,319 vehicles
turned out in 1929 and 1907, 81
built in 1887.
The survey places General Motor
production this week at $500 com
pared with last weeks 53,565
Chrysler assemblies at 26,570 com
pared with 24,773 and Ford com
pletions at 10,450 compared will
23050 vehicles last week.