The Wilmington morning star., 1946-11-06
Auto Industry Outlook

Auto Industry OUTLOOK
With the country's production of coal
falling off through the walkout of min
ers while the government and pit rep
resentatives discuss the wage increases
at the bottom of John L. Lewis de-
mands, it will not be long until the steel
output falls off and industries Deepen
dent upon steel will all too soon have to
curtail production, at a time when
through production alone can the wave
Of initiation be stemmed and the nation
get back to normally in prices.
Among the heavier consumers of
steel is the automotive industry. 1t can
not turn out cars and trucks without
a tremendous and continuing supply of
steel. But the probability of having its
supply reduced below it's minimum re-
quirements, it is also face to face with
pending or soon-to-be-presented wage
increase demands which have already
caused the cancellation or reduction of
orders by many dealers. Because labor
is reviving the program of last year
which caused so many strikes in major
industries, prospective car buyers are
withdrawing their orders, with result
that dealers cannot dispose of the. autos
they expected to sell this winter, pro-
vided the manufacturers could deliver
them.
The Wall Street Journal has COM
pleted a survey of the dealer situation
and what it reveals is truly alarming.
At the expense of space it seems fit
ting to quote from it's November 4 is
sue at some length, that the picture of
what is going on under the surface may
be the clearer. Note what the Journal
says:
In Detroit, the United Auto Workers
have opened a tough new campaign for
higher wages-which forebode still loftier
car prices.
A cross-country survey shows dealers
deeply concerned about the effect on the
market.
In Portland, Oregon, E. ]. bearing, sales
manager OF Portland Motors, says: YOU'D
be surprised how many people have al
ready cancelled orders because of existing
higher prices" He says that on his books,
"out of 800 orders, 100 have refused de-
livery because Of price" (Mr. bearing is
a distributor for Hudson: Hudson's present
labor contract ovpiroc Noyannher %
In Los Angeles, a Studebaker salesman
says: You don't have to be brainy to fig
ure out what will happen if prices 60 up
much more. We're getting evidences Of
the first few straws in the wind. In the
last 30 days we've had two customers who
couldn't meet their payments" (Stude-
bakers JAW. contract has a 30-day can
collation. clause.)
In Chicago, a spokesman for Beverly
Hills Motors, a Packard Dealer, reports:
Eve had cancellations of orders when the
last price rise went into effect. If it goes
much further well have a full -fledged buy
ers' strike on our hands. The average
citizen is beginning to think it out, and
500 is going to make a lot of difference"
He says when the last boost went through
many of his potential customers dropped
down and started making friends with ,
Ford and Chevrolet dealers. packard has
received a new negotiation notice from the
union.)
In Cleveland. a Chrysler agency says
that some Of it's wage-earning customers
have asked to be down-graded from a
Chrysler order to a plymouth because
higher prices put larger automobiles out
OF the reach of the working man now"
d. A. w. has opened talks with Chrysler
on demands for a further wage increase.)
In one of the smaller steel communities
nf perpcr1,~~;a D,,ioJ JAo1er LaJ
ders-with cash deposits-for III cars on
his books last August /. He has delivered
only six OF his General Motors cars since
then. Nevertheless, currently he has only
So orders on his books.