THE MOTOR TRADE IN AMERICA.

Auckland Star, Volume LV, Issue 250, 21 October 1924, Page 12

THE MOTOR TRADE IN AMERICA.

Writing of tlie present cond'tions of the motor industry in the UuiUil States the "Motor*' says: "Retail sale conditions are 'spotty.' Generally speaking, the volume is bolo"' last year, although it .is better than in auy previous year. June and tlie early part of July "were a little better than May in most centres. "In New York, Chicago and Philadelphia, dealers are beginning to feel the effects of industrial contract'on in spite of intensified sales efforts. The same condit'on prevails in smaller j industrial cities. Ther has been a slight j improve in nt, on the other hand, in i cities which are the trading centres for ! agricultural districts. I "One of the important developments lof the month has been the courageous ! acceptance by certain manufacturers j that surplus manufacturing capacity is j a liability which might better be written off sooner than later. | "Production must be curtailed when demand exceeds supply, but at is less , costly in the long run to reduce output by reducing factory capacity. Tliis I must be done by many companies in the I original equipment branch of the indusi try unless they can find profitable sideLines in the way of accessories or replacement parts. The tyre and truck branches also are suffering from too great capacity, and a good many passenger car makers wish they had less. "The dealers who perish tit's year will not have died in vain, nevertheless. Their factories have been given a severe jolt by the conditions which now prevail in the retail end of the trade. Never again will they pursue the tactics, so successful in the past, of pushing production and then cramming cars ruthlessly down the throats of dealers, using the threat of contract cancellation to foster this forced feeding. "The executive head of one gigant'e. combination is understood to have avowed with all the emphasis at his command that never again would he permit dealers to be overloaded. Other major producers have made the same pledge. They have decided that au -intelligent, aggressive dealer is a much better judge than the factory sales manager of how many cars can be sold in his territory. They know that efficient dealers are becoming so independent that they will shift frdm one company to another rather than submit to a policy of dictafc'on which' means overloading. Contract cancellation has ceased to be an effective bogy."