CAR SALES ARE RISING

Southland Times, Issue 23047, 14 November 1936, Page 19

CAR SALES ARE RISING

The American Market That the motor-car industry is bullish about the immediate future, and feels that new all-time heights will be reached in car registrations in the United States is indicated by the address of Mr C. E. Wilson, vice-presi-dent of General Motors Corporation, in Detroit recently. Mr Wilson disclosed that there has been a monthly improvement in domestic sales of passenger cars and trucks of 2.7 per cent., based on a twelve-months moving total, during the last three years. While this, hate of improvement cannot be maintained year after year indefinitely, nevertheless such trends do not change suddenly. Hence a good volume of business for the near future is forecast. Mr Wilson declared that government figures show a large increase in the percentage of the national income being spent on new cars. Prior to 1933 the ratio of increased motor-car purchases to increased national income , was a gain of 35 per cent, in car business to each 10,600,000 dollars of increase in national income. During 1933, 1934 and 1935 the improvement was at the rate of 35 per cent, for each a,000,000,000 dollars The industry’s ability to get a larger share of the consumer’s dollar is attributed by Mr Wilson directly to the policy of car manufacturers in building a better product constantly and selling it for less. Better Cars Cost Less. Mr Wilson said:— “In 1929 the average retail value of a motor-car was 895 dollars, while in 1935 it was 690 dollars for a much improved product. During this period the price of the average car has been decreased 23 per cent, and the weight increased 6 per cent.; this gives a decrease in cost per pound of more than 25 per cent. At the same time the appearance, performance and utility of the car have been greatly improved.” R. H. Grant, vice-president of General Motors in charge of distribution, believes, according to Mr Wilson, that the American public can use 35,000,000 motor-cars before the saturation point is reached. This compares with total registrations of 25,550,713 cars and trucks at the beginning of 1936. Such expansion in car ownership, however, hinges on three matters. Any further increase in taxes, maintains Mr Grant, will tend to defeat the maximum use of motor-cars. Legislation pertaining to the operation of cars must be intelligent and not too drastic. The proper number of roads, scientifically built to avoid undue congestion, is another consideration.