MOTOR INDUSTRY.

Auckland Star, Volume LXX, Issue 34, 10 February 1939, Page 6

MOTOR INDUSTRY.

WHAT IT MEANS TO U.S.A. j The automobile industry is now "considered, the most vital single industrial factor sui the; American economic system, and it is .estimated j that one out of every seven persons .employed on production an the United States owes Ms; occupation directly or indirectly to motor! vehicles, while the automobile industry consumes 20 per cam of the is.tcel produced iii: the United States; more thaii. .72' per; i.confc; of "the plate'glass; 00 per cent of the'.petror;': aikV42 per cent of the lubricants. Thc'lindustry j also absorbs about one-quarter of tlie glycerine j produced; 31 per cent ofithe ileud; 2S per; cent of •the nickel* and 40 per cent of tacmohair, and many other products-in. widely; varied proportions. .;-.'■'}•;■■ ■'■ '"•■' ' In reducing the prices of sonic of the-1939 ! models, the American automobile industry is resuming its traditional policy, interrupted in 1937, wlien, on account of rising wage and material costs, prices were increased over .those of the previous year. Jt may also be pointed out that in spite of the increasing 'size and quality of the cars throughout the period, .the average retail price of passenger .automobiles in .the 'United Spates was reduced from 1007' dollars in 192.) to 704 dollars In J937, .before the increases in the prices of the 193S' models- ■ came into effect. In order to visualise the improvements in American motor cars since 1925, it may be pointed out that on the average the maximum liorse-.po.wcr of -engines has been nearly doubled since .that year.; that horse-power per cubic inch 'of engine displacement has. .been, increased SO per cent; and that compression pressure has been raised 70. per cent. While this progress has !been made in the direction of providing a better average car performance, and, as a result, ,cars have, been made .about 30 per cent ilarger and heavier, yet-efficiency, as reflected in fuel eonsumption, has iboen .very appreciably increased. —"Engineering:"