STEEL RESEARCH.

Auckland Star, Volume LXVII, Issue 273, 17 November 1936, Page 16

STEEL RESEARCH.

USE IN MOTOR CARS. IMPORTANCE OF INDUSTRY. CONVENTION IN DETROIT. (By EDWARD W. MORRISON.) DETROIT (Michigan), September 20. Two of America's great industries sat down together during the past week, compared notes, analysed the future and found a common path of usefulness in the development of a nation. The occasion was the annual convention of the Association of Iron and Steel Engineers. Brought to Detroit by the fact that the automotive factories have become a great steel laboratory, the engineers found time to examine conditions that confront the nnJtor builders and offer their own ideas on a multitude of related topics. Steel men are still a bit breathless over the page of operations that has been set for them by the automobile manufacturers. But they have kept geared to the demands of Detroit factories and are ready still further to speed up their own mills. New units of the steel industry built in the last ten years, chiefly under pressure of automotive demands, represent an expendi-

ture of £40,000,000. These mills liavc a capacity of 9,500,000 tons of broad strip a year. The constantly increasing: market for automobiles has been due in part, according to Mr. H. G. B. Bennett, president of the association, to the result of engineering practice in perfecting 'wide strip steel. New methods of handling strip steel, he claimed, have tended to reduce production costs for the automobile manufacturer aWd give more in dollar value in,his car. Large Research Budget. An inquiry among 42 steel companies, comprising almost 00 per cent of the national steel capacity, reveals a research budget of £1,840,000. Both automobile and steel engineers point to this expenditure a* a part of the struggle to improve the product and widen the use of steel for automotive purposes. About one ton and a quarter of steel goes into the making of* the average automobile to-day. To build 4,000,000 cars this year will require almost G,000,000 tons of steel. The use of all steel bodies, all steel tops, wire wheels, metal tyro covers and trunks have been factors in the growing contribution of the Pittsburgh, Gary and Youngstown mills to the automobile. "Were the methods of ten years ago used to-day in the steel mills," said Mr. Stcphan Badlam, Pittsburgh engineer, in pointing to developments in the ttat rolled steel industry, "the cost of parts to the automobile factories would be double what they are." He cited the vaat expenditures made by tho njills to keep in step with the demands for constant improvements furnished by the automotive factories. "To-day a car sells for £120," he added. "Ten years ago a car with all the modern equipment of this £120 model, including radio, could not be bought for £700." "Cheerful Figures." Somewhat the same note i.s stressed b- the vice-president of one of the largest of the motor car firms. "In 1929 the average retail value of a motor I car was £179," he said. "In 1935 tliel average retail price was £138 for a much- j improved product. During this period the price of the average car has been j decreased 23 per cent, and the weight of I the average car has been increased 6 per \ cent. This gives a decrease in cost per pound of over 25 per cent." Perhaps the most cheerful figures for the engineers to carry away from their convention were offered by" the speaker in reviewing the percentage of national income which lias gone in past years to motor cars. "With a national income of 40 billion dollars," he said, "approximately 2.4 per cent of the 40 billion is spent for new cars, while with a national income of 80 billion dollars 4.1 per cent of the 80 billion is spent for new cars." Such a ratio has been well exceeded in the past three years, he was quick to add. His figures showed, for instance, that with each five billion dollars increase in national income the value of automobile sales climbed about 35 per cent during 1933, 1934 and 1935. A 10 per cent increase iii the present national income, he concluded, should increase the value of new cars purchased by 20 per cent on the basis of accumu- - lated figures, and should lift the value ■ibout 35 to 40 per cent on the basis of the 1933-1935 trend.—(N.A.N.A. —Coiiv-! right.) j.