THE UNITED STATES

Hokitika Guardian, 27 September 1929, Page 2

THE UNITED STATES

5i RECORD AUTOMOBILE YEAR, Production of automobiles and trucks is runing somewhat under the rate of the Spring monins, says a New York financ.al journal, but the decline is largely seasonal, being incident to preparations for bringing out new models and increasing output in tlie Fall. For the first half of the current year production of passenger cars and trucks in the United States amounted to 3,223,090 which irns 46 per ten-, higher than in the corresponding period of 1928 and well above all previous years. Tlie cumulative monthly production indicates a new’high record in 1929 of perhaps 6,500,09.) vehicles, even allowing for a moderate re ession during tho remaining mon'lis. Of the increase in production this year the now Model A. Ford lias contributed a large share. Assembly ol this car was begun on December 2nd. 1927, and by the end of twelve months a rate of over 6,000 daily had . been reached with an aggregate production during the period of over 733,000 cars. Since that time the rate lias been further built up and by tlie first of February, 1929, tlift aggregate passed the 1.00.),009 mark. Thus a space of only -fourteen months contrasts with over seven years that was required for the old model T to reach the 1,000,009 mark. Loss than seven months later the new model passed its 2,000,000 mark. Unquestionably the expansion of Ford production has increased competition in the lower priced field, hut it is hard to recall a time when competition in the industry has not been keen, and it is worthy of note that in tho current year new high records have been made by the Chevrolet of General Motors, and some other light

cars as well. Among the higher priced cars the competition of the Ford lias also been felt indirectly by affecting tiie value of trade-ins which are an

important factor in the sale of new cars. Foreign demand for American amomobiles continues its steady increase part of which, however, is being met by the numerous assembly plants and factories that have recently been established abroad whose output will to some extent replace shipments that were- formerly made from this country and appeared in our export trade statistics. Grave concern about one phase or another of the motor industry has been expressed from time to time for years back, but the past record of leading companies and their present strong financial position support confidence that the industry will be quite able to look after itself in meeting competition regulating production and solving new problems as they arise.

Tire production has been establishing a new high record and is about 13 per cent, larger than last year to date hut the substantial stock of tires and tubes on hand, combined with a cut in prices by important distributors, have brought a ten per cent, curtailment of operations in the Akron district as a corrective measure.