| Show BABSON AEVIE AUTO INDUSTRY Y P PROSPECTS ing Oui On Larger Output Next Nest Yearl Year 1 l r HILLS lULLS Mass Maos o ov 30 The The outstanding features of the automobile situation are are- are arc 1 I heavy Y but declining production 2 2 declining demand 3 rah Iy ala sta- stable sta stable ble prices with Ith elo downward donart n nard ard merits here 4 ke keen n corn com petition coin petition and 5 good fl- fl fi financial l condition of the more in- in Im Important companies aco ding to ft 11 sur ey made by Ly Roger W D the statistician which Js Is summed 11 up In lii statement laudi ode E 1 E DI D s1 D Tile The of cars cam and months of truCk for tho the ten this yen a averaged ears cars rs and 32 0 9 trucks per month sa sass s Mr Ir Babson this this hl total output Is output is about 60 GO lent ent better the output in th the correspond correspond- corresponding ing IIII period of 1922 Notwithstanding ing lug this heavy rate of production stocks of new ne cars have lt not accumulated to a- a abUl a but bUl degree Sales the fht qu list of tIme the I scar tar car kept I i I I pace JUl production nd Den list and sum sUni- summer summer mer men exceeded s c c an and ninny many found Cound themselves with without aith- aith th out cars laige enough to meet met the needs of their customer It 11 this in mind dealers 1 Aie ie 0 no now In- In in inclined to plan plait on stocks fOI next neit cai el ap- ap apparently ap apparently ILl am aie e also Inclined to look fOl hea heavy heay y Increase In sales and are planning on a 0 much larger output PRICES GO The Industry Indu tr h- h his been fa 01 ed ednot not only by an unusually strong trong ete- ete domand de demand mand but also by the fact that thit nu- nu au automobiles are arc cheaper e to war pre pre-nar Ideas of value alue than mo most t other commodities Bv Dv reason of the thc laige of concerns m com competing I foi fot 1 business and also by 11 reo m on of he lie lly of lu luer oser er prices in III order to to successively sn andy elv 10 lower loner er Je levels els of PUI ch power pOOr the trend In price has been do don n nard ard and theme thelo Is nothing In sight that Indicates a change In this tillS trend How low the nih will II long con con- con true its remarkable growth is dif dif- difficult dif difficult to say SlY The changing I Itlo tIo In the rate o of regIstration mci ease case and the increased co cost t of or locI Hem cm to indicate m 1 in e- e c ex expanding pending the ket It Is that the more alert manufacturers ar arc continuing to plan on more cheaply made cars in the In order that they m nia mav put pi Ices lo er and appeal to ger num hum number numbers ber hers bers of people p-opio So long as s thIs tendency proves promes pro es profitable 11 it Is h difficult to Sl siy when the Industry will i leach each the point jouni n liei he e it n willbe lit ill be primarily on a basIs eRO TRETS Another nother important factor Is tile the traffic conge congestion pre prevailing In h Inmany many ny laige lauge cities which Is begin begin- helln 1 beginning beginning ning to prove pro a distinct to tho the sale of el cams cais s to residents In some laige plates places It Is Iq much more mort comfortable be to walk aU or to use tol- tol trolleys Tea leys bub ays ays or trains It Is that this condition ma grow gross to such an extent as to seriously cUr cUr- cUrtal tall cur tall tal demand and th the the Industry Is seeking to hive e rte cities plan street construction so o as to 8 glie e automobile first t lion tion The fhe the chief danger In the auto auto- automobile automobile automobile mobile situation Is 11 the tenderLy y of bu buers ers to exceed the safe limit of However el so ao long lono as Consumers can cn manipulate their budget so BO as to include automobile at present Ie levels el the will mill continue to nd Pre Present ent demand for tor automobiles I ly good when you iou cot cot- con Idel that It general business as i-c- i re reflected on the Is run run- running run running ning 7 pel pet ent nOI nominal ACTION ACTIO OF OP STOCKS hel e a Is nothing In the tild am Ion o 0 motor stocks which suggests II a different market mo em count nt flom torn the tle list as a whole hole continued Mr r An erge of 13 rep rep- rep representative 0 Issues Issue both car and amid truck truel told oIl at t 1 L high In the Hie lip liming ot of 4 48 declined to a low Ion last sum bunt summer tum nier mer of oC 31 d a a d have he tallied to 3 37 7 motor ory y from a high bight of 76 6 declined to IS and maintain a Ie level lesel cl around 7 All issues used arc are Ne New York Stock listed and ent boil bod n wheel heel heel tOl and nd simi I lar r similar plants Tirca Tirs ho hoe however e r are re 1 not d E the mos mo moe move move-m e- e e of oC Individual Ind I Issues ues in these evidence one fall falls to find 1111 and esi- esi evi cl dence of a it trios 1110 movement ement in specIfic ls Issues In iii opposition to tic in tl n 1 flie fhe apparently gretter gre Intensity of priced competition In tho popular pric prk ed eel car field than In other rt dep menta of ot activity in the motor business eBS might scent scein to suggest trends In the different is- is issues Is Issues sues ques All however ha have hae e I eco cred front from 25 to 10 iO per pcr cent ent or 50 per cent percent of their decline Looking baik a little further It appears that automobile stocks hase ha very tery Ioe closely followed follo tb the th trend of the genet si m market since the tie tie- de-clino de chine In 1920 It Is Iq probably rca rea- rea reasonable to assume that they do so 80 In tho ho future |
