Evening star., 1950-12-31
Auto Makers See Year
As Biggest and Most
Abnormal in History
By Dovid J. WiIkie
Associated Press Avtomoiive Editor

Associated Press Avtomoiivs Editor
DETROIT, Dec. 30.-The big
gest and most abnormal year" in
automotive industry history. :. /.
That's what many motorcar
makers are calling 1850. They
point to:
l. The production Of approx
mately 8 million cars and trucks
with wholesale valuation of $40
billion and parts valued at 81 bill
lion.
2. Retail deliveries Of approxi-
mately 7 million cars and trucks.
8. The greatest net earnings by
the auto makers for any year,
probably well in excess of 81 bill
lion.
4. The distribution of more than
$2,685 100000 to hourly-rated
workers, an increase of % per cent
over 1949.
5. More worker pensions and
other welfare measures along with
the highest wage level ever
reached. (The average wage OF
hourly rated workers in the auto
industry has been estimated at
$1.78.)
High Marks Set.
Just about everything the indus
try did in 1850 set new high marks.
The years output total compares
with the 1949 record of 6,238,088
cars and trucks. Its indicated re-
tail deliveries compared with last
years record of 100000 units.
The year was a profitable one
for all but one or two companies.
But it neared its end with little
optimism among the car makers.
Facing a certain scarcity Of ma
terials under the impact Of defense
planning. they had no idea how
many vehicles might be built for
civilian use in 1851.
They had only a small volume
of arms orders on hand and they
were fearful civilian cutbacks
would throw many workers into
idleness before defense production
could get started.
Meanwhile, automobile retailers
were protesting loudly against
credit restrictions imposed by the
Federal Reserve Board. The deal
ers claimed the controls, requiring
one-third down payment and but
Is months to complete INSTALL
ments would force many small
merchandisers out of business and
cut sharply into the sales of larger
firms.
Credit Controls Imposed.
Re-imposition of credit controls
was one of the major develop
ments of the year for the auto
mobile dealers-next to the heavi-
est sales volume in their history.
The Federal Reserve Board held
the credit limitations were neces-
sary to put the brakes on too heavy
a volume of credit buying.
The biggest volume of unsold
new cars was another year-end
development. But If the difference
between production and sales
looked big on paper it didn't to
the car makers. With one or two
exceptions the manufacturers felt
the big field stocks gave about
the only assurance that there
would be cars for sale late in the
spring and early summer of 1851.
And while many retailers were
protesting that credit controls
forced many potential buyers out
OF the market the industry's ef-
fort to hold the price line broke
down. Citing huge increases in
manufacturing costs and continu-
ing advances in wages, General
Motors and Ford announced high
er price tags for their 1851 model
cars.
Increased Costs Cited.
Roughly, the advances amount
ed to about 5 per cent. General
Motors reported materials costs
had gone up from 7 per cent, in
the case Of steel. to 800 per cent
for rubber, and wages and other
employe benefits lib per cent
during the year.
Ford, which previously had an
nounced an effort to withhold
price increases, reported that in
less than six months manufac-
turing costs. including supplies,
materials and labor, had advanced
at a rate Of $103 million an
nually.
Announcement Of the GIN and
Ford price increases followed by
less than week 3-cent-an- hour
upward adjustment in the wages
Of about 100000 of the industry's
hourly rated workers. The ad-
justment was made under con-
tracts with cost-of- living clauses
tied to the Federal Bureau of La
Dor statistics analysis of living
costs.
High Production Seen.
Generally the auto makers said
they expected a fairly high level
OF production during January, but
couldn't even guess what might
happen thereafter. Governmental
stockpiling of steel, copper, alum
mum, zinc, nickel and other
metals brought national produc-
tion authority orders to reduce
civilian use Of these essential ma
terials.
Some industry authorities pre-
dicted 1851 would bring automobile