Evening star., 1941-09-22
Further Expansion
In Auto Production
Due This Week
Parts Shortage at Few
Plants Fails to Halt
Upward Trend
Bv DAVID J. WILKIE,


DETROIT, Sept. 22.-Although
one or two companies were forced to
revise production schedules because
of parts shortages the motorcar in
dustry apparently is heading for top
levels of output under the curtail-
ment program.
Tentative schedules for this week
call for further increase over last
weeks 6O,6l5-unit production; barr
ing some serious interruption to
production programs due to ma
terials shortage or labor difficulties,
the aggregate output for September
should come close to 100000 units,
including a sizeable volume of trucks
as well as passenger vehicles now
under restrictions. August output
approximated 175,000 cars and
trucks.
The industry thus still is consider
ably below the assembly plant ac-
tivity necessary to turn out the
1,o23,217 passenger vehicles author
lied by the Office of Production
Management as the maximum VOL
ume for the five months from Au-
gust l to December 81.
Some Parts Delayed.
None of the car producers fears
a shortage of major proportions
during the first five months of the
model year; several of them, how
ever, have felt the effect of delayed
deliveries from their parts suppliers
working from smaller inventories.
One such delivery interruption
forced a two-day shutdown in a
factory that was Just getting well
under way with its 1912 model as
semblies.
Just how close the indicated out
put for the next three months will
come to meeting consumer demand
still is a matter of guess work in
authoritative trade quarters. At
the start of the new model period
there was a disposition among some
of the sales executives to profess
belief that a shortage would develop
under the initial 265 per cent cur
tailment order.
The cut now has been extended
to 322 per cent for the first five
months of the model year and the
sales chiefs generally are explaining
that consumer demand cannot be
properly appraised until all models
have been publicly introduced and
priced. According to present plans
that will be at least another fort
night.
Changes Seen Ahead.
The certainty that the present
models must undergo some drastic
changes soon after the first of next
year undoubtedly will bring a rush
of buyer interest, trade sources
maintain, although they admit a
hesitancy has developed among
would-be buyers in many sections.
The sales experts who have said
shortage of new cars is inevitable
before the end of the 1912 model
year explain that the bulk of it will
develop late next spring when en-
ployment in the defense industries
begins to expand.
That's the view of the industry
executives charged with the re-
sponsibility of selling new auto
mobiles. Other authorities attempt
ing to weigh precedent, a year of
record-breaking car distribution
and the abnormalities of a war
economy are more positive than
ever in the belief a shrinkage in
retail demand substantially would
have cut 1912 car production even
had there been no curtailment
orders from the national defense
agencies. These sources maintain
that the retail car market was over
sold in the 1941 model period.
The highest individual tax levies
In the Nations history, restrictions
on credit buying and the obligation
OF paying for last years car out of
anticipated earnings are other fac
tors these authorities cite to support
their belief that 1912 demand has
been over-estimated in many
quarters.