Automobile Outlook

The automobile industry has consistently confounded conservative judgment. Year after year it apparently reaches the saturation point, only to establish new production records and go ahead again. The reaction of the public to the recent National Automobile Show in New York was such that automobile makers are now quite cheerful, and are talking of hanging up new production records in 1924 with a 25% greater rate of production than last year. One thing is, however, certain--the period ahead will be one of intense sales competition. Practically all leading makers are giving scrupulous attention to small refinements and popular mechanical features in their new ears, as well as such innovations as four-wheel brakes and balloon tires. The competition in prices is equally keen. It is estimated that a dollar will buy 11% more in automobiles now than it could have in 1913. In fact, the automobile stands out almost alone as being cheaper now than before the War. This price reduction has been primarily forced by intense competition in the industry, but it has been made financially possible by increased economies in quantity production and selling.