Evening star., 1949-01-02
Everything Went Up
In Auto Industry
During Last Year
By Dovid J. WiIkie
Assosia.sd Press Avsometivs Editor

Assosiotsd Press Avtometivs Edites
DETROIT, Jan. 1.-The year 1913
will 60 into the auto industry's rec
ord books as one in which every
thing went up.
Manufacturers costs and profits
increased; retail prices mounted
steadily and the unified order back
log continued to rise as production
topped every year but one in car
industry history.
But for materials shortages and
many labor disputes the auto fac
tories would have exceeded the rec
ord mark of 1888, ,42O vehicles built
In the United States in 1929 When
official figures are finally computed
they probably will show a total out
put for 1948 of around 5,200,O 900
cars and trucks.
New Look Emphasized.
The year brought new emphasis
to the postwar new look" in auto
mobile designing. Almost without
exception all the new models intro
duced as wholly new featured
lowered height, roomier interiors
and increased engine power. Out
ward styling generally was along
identical lines. Straight fender lines
from front to rear, fiatter hoods
and more glass appeared in vir-
tually every new model brought out.
Probably one Of the biggest up
sets Of the year in car designing
was the failure of many auto
makers to bring out expected new
automatic transmissions.
In most instances the car build
ers who were expected to bring out
new types of automatic transmits
sions now say they will have them
ready some time in 1949.
Plagued by Shortages.
Sheet steel shortages, an indus
trial gas shortage, the effects of q
coal mining stoppage, inadequate
parts supplies and recurring minor
labor troubles kept the industry's
assembly lines on q stop-and- go
basis throughout most of 1s48. Yet
most companies, with vastly in
creased manufacturing facilities,
managed to get into new produc-
ton ground
The production gains were espe-
cially noteworthy among the So
called independents" Several of
these smaller concerns neared the
best output marks in their history.
OF more than ordinary interest was
the showing of Kaiser-Frazer Corp,
postwar entry in the automobile
industry.
Other significant events Of the
year included Ford's expenditure
Of approximately $100000,00O for
new Ford, Mercury and Lincoln
models and the implementing of
the most drastic change in Ford
cars since the Model T was discon-
tinued in 1927 The Ford change
over was accomplished in a few
weeks as against normal model
switchover of around two months
or more.
The car industry will start the new
year with an untitled order backlog
said to be large enough to keep the
factories going for more than a year
and a half even II no new orders
were to be booked.
Order List Uncertain.
However, there is more than a lit
tie uncertainty regarding the order
list. In many industry sources 1t is
being said delayed deliveries apply
mainly to loWer-priced cars-in the
Chevrolet, Ford. Plymouth group
and that many other makes can be
had in relatively short time.
There is no question 1948 was a
profitable year for the carmakers
and retailers. Yet it saw the end of
the era of fantastic prices for used
cars and for new cars sold on used
car lots. 1t also saw a sizable num-
Der of car dealer franchises Cancelled
on charges of unethical practices
such as demanding premium prices
and trade-ins at under market val
ues for early delivery.
In labor relationships the most
significant development of the year
undoubtedly was General Motors
contract with the CIO United Auto
Workers Union. Under this con-
tract wages go up or down with the
cost Of living as determined each
three months by the Federal Bureau
Of Labor Statistics.
A few industry chiefs are making
predictions regarding 1949 They
will build another 100000 vehicles
If materials and labor continue
available and there is no cut in
buying power to wash out sizable
part of the 100000 or more I'M
filed orders on file.
One Of the surest things about the
year ahead, most industry chron-
iclers assert, are more retail price
increases.