The Wilmington morning star., 1947-02-23
U. s. CAR MAKERS
ARE OPTIMISTIC
Reports OF Impending Pig
Iron Shortage Refuse To
Dim Output Hopes
BY ROY ].

DETROIT, Feb. o. W.D Fore
casts of auto production In l94'
continue to be optimistic in spite
of reports, of an impending pig
iron shortage.
George Romney, general man
ager of the Automobile Manufac-
turers association and spokesman
for the industry. thinks the car
makers will produce some l'ooo'-
600 more units this year tina IN
1916.
He told the nations auto deal
ers in Atlantic City this week tina
the industry would make some ON
5000, 900 passenger cars am l'ooo'-
900 trucks by Jan. l, 1913.
Romney warned the dealers that
tagging production was the only
factor barring a return to a .puy
er's market" So far, sales nave
been manufacturers least worry
Using the same information
sources, George W. Mason, ANA
president. warned the office OF
Temporary controls that the pig
iron shortage threatens auto cut
backs and employment In March
or April.
Mason blamed heavy ALLEGATIONS
of the metal to the national nous
ing program for the threatened
shortage in the auto industry.
Mason took the short-term out
look. but Romney's predlc-
lions were based on performance
for the entire year.
Romney said labor was On its
good behavior at the moment De-
cause of congressional interest IN
legislation to bar strikes and re-
duce the industry-wide powers OF
unions.
Nevertheless, Romney said,
auto strikes later in the year might
limit output. He also said produc-
ton would be controlled by avail
ability of materials, prlnclpal-
ly steel. .,c
Output so far this year in us:
and Canadian plants has climbed
to nearly 100000 units, or more
than three times the number OF
cars and trucks made at this time
a year ago.
There are several bright spots
In the industry's overall outlook.
For instance, the rubber indus
try is in position to supply all the
needs for tires for e cars.
trucks and buses. 1t is working
at near-capacity levels.
II 1916, there was a 1876 per
cent increase in the production OF
car tires, compared
with the previous year. Truck and
bus tires are in plentiful supply.
Auto industry reports say that
dealer business is at all-tlme rec
ord levels. One manufacturer said
recently some dealers r con-
cerned over the rapid rise in earn
ings. Auto .servicing business con-
tinues strong.
Dealers, however, are seeking
new revenue and r considering
steps to reduce the inroads made
by banks into the auto financing
business in the past few years.
The dealer loss to banks last year
Is estimated at $6, 0O0, 900.
Manufacturers, reviewing auto
conservation in the war years, say
the public has become convinced
that the purchase of new cars each
year is unnecessary, having learn.
ed how to make their cars last
longer.
Some factory sales organizations
now believe that this may cause
q revamping of estimates of the
potential market for new cars and
trucks = previously set between
IL. OOO, 900 and Is, 000, 900.
Manufac turers concede that
car prices are too high and fear
that this will force a return to a
buyers market long before the
vast new : car demand has been
satisfied.
The turnover in used cars will
be an accurate barometer to buy
ing trends. Used car dealers say
their stocks are moving well and
at good prices, ven during the
normally slack winter season
A progressive tightening of the
used car market at prices COM
parable to pre-war levels prob.
ably will shift manufacturing en-
phasis suddenly to more competi
tive engineering and styling.
Since VJ-day, the emphasis has
been on production of cars that
are little changed from pre-war