Evening star., 1946-08-04
Car Output One Third
I0f Production in 194t
las Demand Backs Up
By Dovid J. WiIkie
Assoe,e,sd Press Alternatives Editor


DETROIT, Aug, 3,-The nations
plants so far this year have turned
out slightly under 100000 vehicles.
but no appreciable reduction has
been made in the big backlog of de-
mand that piled up during the war
years.
II you think 100000 is a lot OF
automobiles and should include ths
one you order several months ago
it would be well to remember;
The volume is less than one-third
the number of cars produced in the
first seven months of 194l.
In the decade preceding the war
replacement demand alone required
slightly more than 2,380,0oo cars
annually.
For three and one-half years
from February 10, 1912, until July 3,
1915 not single passenger car
was made for civilian use
Current production is at the rate
of less than so per cent of normal,
Because of materials shortages
thousands OF vehicles are leaving
the assembly lines unfinished some
minus bumpers and others without
rear seat backs and cushions. Some
buyers are accepting deliveries with
out rear set equipment, but in several
instances the unfinished vehicles are
nil txN 1x+r u 81,
assembly plants.
That is the dark side of the OUT
look for early delivery OF new pass
enger cars and at the moment thers
are few offsetting factors.
The car industry currently has
greater production capacity than at
any time in its history.
However, because of shortages Of
steel, pig iron. copper, cotton goods.
lead, scrap iron. leather and Writ
ually every other item going into
car assembly, the industry has not
been able to utilize its full capacity.
Demand Still Great.
1t may be true. as some indus
try authorities have said, that ths
backlog of demand has been over
estimated that it will shrink ma
terially as car prices move upward
and that buyers already are becom-
| ing more "Selective'-more partic-
ular about color combinations and
other details which a few months
ago would have been ignored in the
| eagerness to obtain new car.
/ Yet, allowing for all the elements
that might enter into overestimating
| the accumulation of new-car orders,
the demand is substantial, repre-
sentlng probably greater yolums
than the industry can produce in
the next year to 13 months.
Whatever demand may be with
drawn because of price increases
| during the next few months will
be replaced by additional orders
to be placed in that period. Ger
talnly the day to = day new de-
mand is not going to be sud-
denly shut of.
Some Buyers May Wait.
! The suggestion has been advanced
IN some industry quarters that price
| increases in present models will
influence many potential buyers to
delay their purchases until the
latter part of next year, when most
OF the manufacturers are expected
to bring out new lower priced cars.
The sales division OF the industry
expects some such reaction to
mounting retail price schedules for
what formerly were low priced
cars. But most of the merchandise
ing executives are convinced it will
not be of major proportions.
| And the industry which puts on its
assembly lines only the vehicles for
which it has orders, is going ahead
with plans for the highest possible
| production volume well into next
year before halting for new model
! switchovers.