The Wilmington morning star., 1945-11-19
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recently submitted by GIN ''indicat-
es clearly that no aeross-the-board
increase is required above theiI
1912 factory price levels"
Ford-A six per cent increase in
factory prices will be reflected "in
about a two per cent increase On
the average at retail" Bowles spec
flied that Ford retail prices also will
reflect changes in engineering and
specifications which have increas'
ed production costs over 194l
levels
Chrysler - preliminary examl.
nation of information Submitted by
the company indicates it is I'm
likely that-aside from specifica'
ton changes-factory prices will be
increased on the average by more
than 4 per cent" This will mean,
Bowles added, about l per cent in
crease at retail.
Chrysler produces the Plymouth.
Dodge, DeSote and Chrysler cars.
Studebaker - Bowles said that
primarily because Of smaller in
creases taken during 1941, increas'
es on Studebaker cars at the fac.
tory level average about II per
cent" This will result in an in
crease at retail of about nine per
cent, exclusive of price adjust
ments for specification changes.
Other makes-Both Packard and
Hudson only recently submitted in
formation to OPA, Bowles said, ad'
ding that a decision on their price
application will be announced short.
ly.
Nash, he said, is preparing
price application but has not SUBJ
mitted data to OPA
Bowles said that several other
m nufacturers, including WHY'S,
Crosley, and the new Fraser :
Kaiser, ARE still some distance
from beginning production.
The Ford retail ceilings an
nounced are:
Deluxe Eight-cylinder Tudor
sedan, 1882, as compared with
$3.50; Deluxe eight-cylinder For
dor sedan, 1891, as compared with
$685.; Super Deluxe Eight-cylinder
Tudor Sedan, $940, as compared
with $685.; Super Deluxe Eight
cylinder Fordor Sedan, $3.50. as
compared with $3.50; Su-
per Deluxe Eight-cylinder Sedan
Coupe, s977 as compared with 1920.
OPA emphasized that these
prices do not include Federal ex-
else taxes, transportation charges,
or preparation and handling
charges.
The Agency announced a retail
ceiling of 1884 for Ford Deluxe
eight-cylinder three passenger
coupes and a ceiling Of 1891, for
the same model in the super De
luxe line. x.1ss
Comparable prieesEfer these are
not listed in the OPA's price reg
ulation on 1912 cars.
This is also the case in connec-
ton with ceilings announced for
new Studebakers, which follow:
FoM-door cruising sedan, 1857;
2-door club sedan, $918; 5-passen-
ger double-dater coupe, $9l6: j.
passenger business coupe, 1915.
On the controversial issue. OF
dealer cost absorption, Bowles
said:
"In setting retail ceilings on new
automobiles we have applied our
normal policy Of requiring that
wholesalers and retailers absorb
all or part of the increase in
factory prices within specified
limitations without passing it on
to the public
Bowles said that despite this re-
quirement dealers actually will
realize considerably higher mar
gins than they did before the war"
In support of this, the OPA chief
reiterated his view that 'in the
present type automobile market. 1t
is perfectly clear that dealers will
not have to take any significant
losses on trade-ins, or to grant the
liberal cash discounts prevalent
during the pre-war period"
Bowles asserted that even after
the reduction of their margin from
"a per cent to 21.5 per cent.
dealers will retain in actual
realized margin far in excess of
their pre-war average of around
IL per cent"
In deciding on uniform cut of
rs percentage points in dealers
margins, OPA made it applicable
to dealers handling General Motors
cars, even though retail prices for
those cars will be an average OF
rs per cent below 1912 levels.
AS for manufacturers prices,
Bowles explained that the formula
under which they were set takes
into account legal increases in
materials prices, as well as ap-
proved increases in basic wage
rate schedules since January 194l.
The Formula requires manufac-
turer absorption Of all other cost
increases.
Bowles said the formula was
designed to assure a reasonable
profit based on volume no
higher than that of 1941.
THE most recent estimate of
the civilian production admins
tration indicates" Bowles stated,
that by June 1946 the industry
will be producing at the rate of
100000 cars a month.
This is about As per cent above