MANUFACTURE OF MOTORCARS

Dominion, Volume 22, Issue 80, 28 December 1928, Page 12

MANUFACTURE OF MOTORCARS

KEY INDUSTRY IN UNITED STATES

The automobile industry is easily the chief manufacturing business in tTie United States, and is mainly responsible for the mushroom growth of millionaires. A record is kept of the monthly production of passenger cars and trucks and the figures arc impressive. The October production (factory sales), as reported to the Department of Commerce, totalled 398,818 vehicles, of which 341,705 were -passenger cars, and 57,113 trucks. This contrasts with a total output of 219,682 cars in October, 1927. Canada’s production in October totalled 18,536 cars compared with 7748 in the same month in 1927. The production in the United States for the ten months to the end of October consisted of 3,405,942 passenger cars, as compared with 2,730.760 cars in the corresponding term of 1927, and 463,067 trucks as against 402,625.

•Mass production results in massive profits, and this is shown by the distribution recently made by General Motors Corporation. On December 10, the 17.400.000 common stock, or as we would tetra them ordinary shares, of 25 dollars (£5) par value were split up into two and one-half new shares of 10 dollars (£2) par value for every 25d01. share. The number of shares was thus increased to 43,500,000. Besides the quarterly dividend of 1.25d01., an extra dividend of 2.50d01. was declared on the 17.400,000 shares. The dividend to be paid on •the enlarged common-share capital is to be at the rate of 7.50d015. per share, and will require 130,500,000d01. (£27,100,000), a year, against 87,000,000d01. (£17,400.000); The Chrysler Corporation in the September quarter of the year earned a net profit of 10.095,797d01., after depreciation, Federal taxes, and interest charges including those on the recently assumed notes and debentures of Dodge Bros. Inc. This was. equal to 2.29d01. on the share, capital. In the first nine months • of this year the net profit was 21,786,276<101., or 4.94d01. a share on common. The balance-sheet as at September 30 shows current assets of 120,021,813d01., of which 59,982,947 was in cash and cash securities, while current liabilities were 36,659,2(3d01. Net current assets are shown at 83.362,539d01., and exceed the funded debt by more than 23,000.000 dollars. BIG ELECTRICAL COMBINE WORLD-WIDE CONNECTION Metropolitan Vickers Electrical Company has'arranged with the International General Electric Company, Inc. (of America) for the purchase of a controlling interest in British Thomson-Hous-ton, Edison, Swan Electric and I-'erguss-on Pailin's. The agreement provides for the cash payment of £969,186, and the issue of 1,152,000 £1 ordinary shares of Metropolitan-Vickers. in view of the enlarged activities the name of the company is to he altered. In order to preserve goodwill, it is intended to carry on the business through an existing subsidiary under the proposed title of Metro-Vick Electrical Products. The interests centred in the company will represent the largest combination of undertakings engaged in the manufacture of electrical plant and appliances of all types in Great Britain with important works in eleven different localities. In addition the group will own a number of subsidiary companies trading in various parts of the world and possess manufacturing facilities in Australia. With the exception of the output; of the Australian workshops, and of an insignificant number of specialised articles, all the products sold by the group are at present, and will continue to be, entirely manufactured in Great Britain. The group possesses a world-wide connection for heavy electrical plant and machinery. Reduction in manufacturing costs as a result of economics and co-ordina-tion will place the company in a better position to meet foreign competition both at Home and abroad, thus enlarging its turnover and' offering increased employment in its workshops. MetropolitanVickers Electrical Company has an authorised capital of £6,395,000. AMERICAN TARIFFS NEW DEVELOPMENT s. Certain prominent manufacturers who wield powerful influence in the councils of the Republican Party in the United States, are,-it is reported, preparing to make a determined effort in the coming year to bring about an upward revision of the duties on a number of products, notably raw wool, cotton goods, footwear, linen, and pottery, or, as an alternative, the adoption of an American valuation system which would automatically place European exporters under a very severe handicap. Some of the leading importers of British goods ,in the United States incline to the belief that such a proposal would receive sympathetic consideration from the Hoover administration. This view, however, is not shared by many representatives of English houses. Others express the view that the New President is not likely to make important changes in the tariff of a character likely to hamper the development of international trade, in which the United States is now playing an increasingly important part.