Evening Star Newspaper, January 27, 1929, Page 96

BIG BUSINESS SEEN FOR AUTO INDUSTRY Unparalleled Prosperity in 1929 Predicted—Producing and Buying Power at Peak. Unparalleled prosperity seems to be in m?re for the automobile industry in 1929, according to W. S. Knudsen, president _of the Chevrolet Co., who says: “There is no sign on the in- dustrial horizon that would indicate anything but excellent business through- out the year. )l‘:\'e m:'ny reasons to support the opinion that we may look forward to a record automobile year. “If all the present indexes of pros- perity remain favorable throughout the year, as I expect they will, the auto- mobile industry should build and sell more than 5250000 units in 1929. Tentative production schedules set by the larger producers, the sound eco- nomic condition of the country, more automobile per dollar than ever and the sound management under which all companies are now operating are factors that csuse us to feel confident that new all-time production and sales | records will be established this year. “The outlook for business generally 1s a happy one, in view of the growing | practice of taking the automobile busi- ness as a barometer of the activity ex- pected in all lines of trade. And in this connection there is little question that the excellent prospects ahead of the automobile industry for the year should influence general business in a very favorable way. Activity in one line inspires actlvity in another, re- sulting in a benefit to both. “Although it will probably not be required to play the role, the auto- mobile business, according to plans al- ready settled on, should serve as a generator to general business in 1929. It promises to be the trail-blazer to new levels of prosperity. Employment High. “We are entering 1929 with employ- ment high and in fine shape. This is a basic note in the optimistic outlook before us. Because of this condition we are assured of a high producing and buying power to insure at the outset a regular flow of useful materials through the channels of trade—which, after all, is the best definition of rosperity. g “h?:nuhcwrmg establishments gen- erally throughout the country are working full time and basic industries are operating at 85 per cent capacity or better. “One of the foremost reasons for the expected gain in automobile busi- ness this year is the record-breaking dollar value that is offered in the 1929 automobiles, especially those in the lower price ranges. “Despite the progress manufacturers have been making every year in of- fering more automobile per dollar, in no preceding year has the industry taken as great a forward step in this direction. Never before has so much automobile per dollar been offered to the motoring public. “Volume production, better manage- ment_and more intelligent sales direc- tion have been the chief contributors to this higher dollar value found in the latest models. “The poj ity that attached itself to the aufomobile almost immediately on its {inception, making necessary ppoulbl 1 ‘?hlps umpuii‘in‘l 1n- it le for vely in- fant industry to become a giant in a few vears and repay the pub- lie lavishly for immediate support in its earlier years. Lines Out Early. “One of the most pertinent factors in the excellent outlook for the in- On the other hand, we | 1 Upper Left: Plerce-Arrow Sedan, Upper Right; Packard Sedan Limousine. Loss by Cities of Tourist Traffic Held Business interests located in the urban centers of the country lose their chance at a large potential source of revenue because of the ‘tendency of a majority of motorists to avoid cities while en tour, according to a bulletin issued by the American Automobile Association yesterday. ‘The question, “Do you prefer to avold helpless); eity tral and servi confusion and the dal “Why tinue to fear the tr a strange city, now ! munity in the land has to inf board of the A. A. A. Out of every 100 persons who answered it, 71 categori- cally declared they preferred to avoid urban areas wherever possible. The reasons adduced for this decided preference on the part of motorists were as follows: Reluctance to run the gantlet of city congestion; inadequate sign-posting of through streets; loss of valuable time; eonfusion regarding traf- fic regulations and consequent traffic hazards and lack of parking space. Commenting on this diagnosis, Thomas P. Henry, president of the national mo- toring , asserted that while con- gestion is a deep-rooted national ail- ment, the basic trouble is unnecessarily aggravated by other traffic diseases which can be readily cured by the cities themselves. “Let us concede at once” he said, “that congestion as such is a deep. ailment for which no worth the while of all cities to motor caravan thro is resulting in the dollars of business Anmnll{é ficulties of transit were less, stop over in the cities on educational value. this condition by permitting other traffic diseases to m%fi’ 2 3 h “Why can't our large cities, for in- toe stance, mark their through highways inst Dlsine dustry is the fact that several of the leading producers have announced their 1929 lines earlier than ever, the result of which should have been the accumu- showings. “Record-breaking crowds were at- tracted to the early exhibitions of the 1929 lines, with sales officials report- ing great enthusiasm on the part of the visitors, e “Marked advances in the style and performance of the new cars should in- fluence thousands of present owners to take an early advantage of the im- proved offerings. “Many of these people will either turn in their present machines before all the transportation value has been taken out of them or join the grow- ing legion of multiple car owners. “Another salient feature of the ex- cellent outlook is the stature of the re- placement market. In view of the fact that the life” of the average automo- bile is given as approximately six years, the 1929 replacement market should be the largest on record, in order to take care of a large part of the 4,000,000 cars produced in 1923. “We may look forward also to a measurable gain in export business. The American-built automobile is fast meet- ing with the exacting standard of the foreign market from the standpoints of economy in operation, low main- tenance costs, size and appearance. “The use of the automobile for com- mercial purposes is gro in favor with business institutions, and I am sure that we may confidently expect measurable gains this direction. ‘Tremendous development is in store for the bus business. The field which the bus is serving is expanding perhaps more rapidly than that of any other arm of transportation, and as a result marked expansion in bus manufactur- years prcves fected. run. Investi JESSE BROOKE stances, tested. ans make thepxms easier for the to pass through.” and the important turns leading to these? Failure to do this results in the visiting motorists often floundering 2,000,000 CHILDREN ARE TAUGHT SAFETY {Lessons in Schools Bring Increased Watchfulness to Prevent Accidents. OF ROADS IMPR California Adds 255 Miles Year. California had added 255 paved construction, 34 miles o nous macadam and 698 miles There are a total of approximately 2,000,000 school children receiving safety education in correlation with their regular studies, according to the safety department of the American Automobile Association. ‘The national motoring body says some 300,000 school safety lessons and 125,000 school posters have been pre- n(Fpubllc ‘works. g pared and distributed within the last| For the coming two years the plans o contemplate 311 miles of , 154 four months. “Moreover, excellent co- miles of macadam and Jll es of operation has been given by school of- flti-l.\sTh ,"Alt Als stated. e A. A. A. safety department states that the development of the school boy patrol is worthy of note. “In 400 of the 1,065 citles and towns in which A. A. A. clubs are located, school boy patrols are now established. There are more than 5,000 patrol units with more than 150,000 boys serving in L!'zet:'n J‘t isd estm';w& that these young- s ord protection to more than 5,000,000 school children. “As a result of this eductional work with the children, we now have sub- stantial proof that the increase in child injuries is not so great as the increase in injuries to adults, thus reversing the situation some years back. This should encourage all communities to support the movement.” f 1,007 the pavement, nated, and the maximum applied in the marking of 1 During the past two years of the railroad commission, signals have been placed crossings. FERODO BRAKE LINING The rapid rate of growth of Ferodo sales for 4 conclusively that Owners and Oper- ators are more than willing to pay the higher price for the reliability and long life built into Ferodo Brake Lining. To preve Ferodo quality, the 17%- mile descent from Pike’s Peak was made with clutch out, using only the Ferodo-lined brakes for control. The heat generated burned the paint from the brake drums—but the Fercdo lining was not af- Ferodo costs more to put on—but costs less to gate. 2 Makes Better Due to Conditions That May Be Remedied through - the whirlpool - of tensify l'"fi:‘flm oppertunity of .| “see s e e mmomrl‘::;fl:& fi load of produce while their hos before it a municipal trafic ordinance developed by nationally known experts after years cities while touring?” was addressed to | of study? thousands of motorists in every State “Parki space is everywhere at a of the Union by the national touring | premium. But here again is & mlc:{en that the adoption ef the municipal traffic ordinance would. help. It is,wall what can be done to provide parking space for the strangers within their ates. " “The motor tourist is today an impor- tant factor in the creation and dis- tribution of national wealth, and fail- ure on the part of our city fathers to give consideration to ways and means of expediting the passage of the visiting h the urban areas loss of millions of If the dif- no doubt at all that the majority of motorists would prefer to use and ofte: They realize full well that in thm{ by they miss much of mhm the more imperative will become the demand for belt lines around ecities, establishment of which ss . interests have, in many in- p." wer is to NEARLY 1,000 MILES _ ing to Hiél\myl in ing with erush rock, oil-sealed or ar- mored surfaces; a tofal of nearly: 1,000 miles of improved highway during the list biennium, This is the summary of a report just issued by the department ways The minimum width of pavement had been set at 20 feet and the midimum width of grades at 36 feet, providing for an 8-foot shoulder on either side, thus giving the motorist ample room to stop his car with all four wheels off Dangerous curves age being elimi- grade is fixed at 6 per cent. A safety device is being crossings have been eliminated. Guard rails have been bullt along narrow grades and, through the co-operation Lower Right: Marmon Touring Spoodster. consider there is n Toute. rooted nat “The longer the cities delay in elimi- | ' wholly adequaté prescription has yet | nating as much as ble the difficul- been ¢ But why aggravate | ties that confront the visiting motorist, s motorists |. OVEQ of !l:- & miles of f bitumi- of grad- safer. 26 grade all grade Drivers Prefer Sleep to Speed, A curlous form of sales resistance has been -enceuntered in an overseas try. It.seems that the drivers of horse- drawn vehicles are averse fo chianging b g g, . | B ONLY rses THE SUNDAY :STAR, ‘WASHINGTON, D. €, JANUARY 27, DRIVES BY INSTINCT.. Driving tests made by the Unrhd States Bureau of Public Roads show that mraveng: motorist drives his car by ‘mstinct, -habitually steer 1 one and one-half to four mmmmug s o the test by the America made est by can torists’ Assogiation. It was fi that the average motorist will ce la safe clearance between his own and matww e cdvfllwb rather than get'claser Tise “teats showed that ‘in moving In All the Shows TWO CARS oce highest quality positi The plain uncompromising truth is that there are literally no cars existing today that can equal Cadillac and La Salle. This is perhaps inevitable, for the finest precision laboratories in the world are the Cadillac - La Salle manufacturing plants. And this fact is so universally accepted that, on an average, seven thousand people Jrom every corner of the earth— engineers, ;"u anu\ent. according to ve- | ter. 1929-PART . 8. AUTO SALES ABROAD EXPECTED T0 GROW Prominent Producer Expects Freer Trade to Promote U. S. Industry. What will 1920 hold for general busi- ness and for the lumbfi: industry? It seems that this country has, for its own good, outgrown the idea that money in the pocket is an assurance of pros- perity. The new era of money in cir- | culation has exerted a tremendous in- | fluence jn America and is bound to have a similar effect elsewhere. DuBols Young, president of the Hupp Motor ©Co., continues: “I believe that the nmew year holds promise, not only of a continuance of the general prosperity of 1928, but also of a further increase of those sound | principles which make for steady em- ployment, firm finances and a healthier condition in every pursuit. There will be new flelds for labor, and a general program of good roads throughout the country. Likewise, it is generally ac- cepted that 1929 will show a greatly im- proved transportation and shipping pro-~ gram which will ald the agriculturist as well as the manufacturer and busi- ness man. “While it may sound like tempting fate. to preview world conditions, it is my belief that 1929 will see a further- ance of international good will, induced and substantiated by freer trade and commerce between eountries. It seems .| to. me that not only will domestic busi- ness be better, but international rela- tions will be more cordial than ever in the new year, thus increasing the gengral prosperity of the world’s peo- Ples. " Sees Gain in Sales. “Naturally, prosperity inthe automo- T tive Indu:ky is dependent upon buoyant doyn a light grade trafic moves fur-{ condi ther over ‘to the center, but on'a steep grade, stays closer to the .. This is explained by the fact that a iight down grade does not-syggest to the mo. to the mos. torist a reduction in and he f 3 ceeds .at an increased speed, m’f&' »ngmy applicable to the auto- stingtively moves over toward the gens’| motive try is belief that - On @ steep grade he rediees eral never m‘::r :.@“m" "mmn:rwnmi‘he 3 hwh facturing thye t the industry e o c 'm- pleak surface proved..to h-.d!l.u' ber just closed lxvn' able ;bal- ‘lure” to keep an ihsiinctive dri ance of- lled orders. Early Spring | near- the "‘xfi‘ ‘-Cegter. lings ~on.$ha | orders ‘are heplthy -shape.in -every avement Tank second as an engineer- | district of the eountry, as well as in solution towatd gafety in driving. | the ex the Iatter, . in 7 which Hupmobile showed an increase of 125 per cent last year, we expect to do an 8,000 car business in 1929. “The dealer and distributor organiza- tion must be a source of gratification to every manufacturer. The retail end of the industry is now firm!z established on a sound and business-like basis. In fact, a large number of dealers have installed modern cost accounting and other detail systems similar to those used by the manufacturer. Retailer Has Confidence, “The retailer of today not only ana- lyzes carefully the financial statement -| of his organization and operating sales costs, but hesmeticulously scans the ca- Pacity of his territory, efficiency of his sales force and the methods and ma- chinery necessary to meet the needs of his owners in a growing business. Kin- dred other problems now receive ki constant attention that were unheard of, or at least unconsidcisd, by the au- tomotive dealer of a half dozen years ago. “And as a result, the automobile re- tailer has developed strong confidence, not only in the organization he repre- sents, but, more important, in himself and his business methods. These are healthy signs for the automobile indus- | try. They represent a firmness and | stability that has been too often lack- ing in the past and at the same time serve as stimuli toward obtaining ever increasing business. “While these are my own personal beliefs that I am expressing, it is from this vantage point that I survey the prospectus and say that I am sure that when 1929 is closed, all of us will be able to pronounce it the most substan- tial and prosperous year in American business and in world business.” 130,000,000 Cars in Use in World. ‘Thirty million cars are in use through- out the world, according to estimates complleg by a statistical department. HEHEHHH t Still “conveniently located on 14th street” and the same set slogan of ‘Satisfaction Plus” from smiling sales and service 7 wpy PROBABLY THE MOST NOTABLE FEATURE OF THE 1929 ANNUAL AUTOMOBILE SHOWS IS THE FACT THAT CADILLAC AND LA SALLE ARE THE ONLY TWO CARS OF THEIR OWN HIGH CLASS IN ALL THESE EXHIBITS. ALL OTHERS ARE DESIGNED, DECORATED AND BUILT FOR LESS EXACTING BUYERS THAN THE CADILLAC-LA SALLE CLIENTELE. scientists, manufacturing experts—annu- ally visit the Cadillac plants to study Cad- illac’s precision manufacturing practices and processes. They make these voluntary visits because they know these processes are so fineand =~ =~ 4 are carried on with such extreme nicety of €A finish and alignment that they are regarded as unique in the automobile industry and their fame has spread throughout the world. ~* - '™ ™" .4 Today's Traffic makes. no difference whether you fa- miliarize yourself with these cars in the factory, at motor car shows, or in dealer display rooms. In any case you are faced with the inescapable fact that if you buy any car other than Cadillac or La Salle you “must be content with far less than Cadillac and La Salle offer in safety, in ease, in beauty, in performance. Safety: For no other cars are equipped with the three invaluable Cadillac-La Salle safety features— Duplex-Mechanical Effort- less Four-Wheel Brakes, Syncro-Mesh e« e Silent-Shift Transmission and Security- Plate Glass. 90-Degree, V-Type Engine: Youmust, obviously, accept something below Cadillac- LaSalleresultsin performance—inbrilliance, smoothness and flexibility — because no other cars are powered with the incompa- rable Cadillac-La Salle 90-degree, V-type, 8-cylinder engine. ADILLAC-LASALLE Style: You must accept something ‘in= < ferior in style, for in spite of understandable. . attempts to imitate their béauty it has never been completely captured and Cadillac and La Salle remain the style leaders of the world. Prestige: And finally, you must be satis- fied with cars that lack the priceless prestige that Cadillac and La Salle alone bestow. Motor Car Shows only serve to throw these recognized facts into sharper relief. Com- parisons and demonstrations only re-affirm them with compelling emphasis. The World's Brakes Neeessary Standard 219 John Marshall Place National Automobile Parts Co. CADILLAC MOTOR CAR COMPANY Division of General Motors Corporation Detroit, Michigan Oshawa, Canada -