Prosperous Motors

Despite direful predictions which were made a year and even six months ago, the current year will go down as the most prosperous in history for motor manufacturers. In only a very few cases will the dollar profits of every leading producer fail to be the largest on record.

Curiously enough, the whole motor industry is now operating on Henry Ford's classic idea--that many small profits amount to more than a few large profits. Practically all motor companies have slashed their prices sharply. Never before did a dollar buy so much in automobiles as today. This universal move has been greeted by the public with a purchasing of motors which even the most optimistic scarcely thought possible one year ago. In the beginning (TIME, Jan. 12) the price slashing between motor companies seemed to point inevitably to elimination of the weaker companies, which is already not unknown in this strenuous industry. Thus far, however, demand has been so great that no important casualties are reported.

When asked how long the reduction of motor prices and the expansion of sales can be kept up, Detroit answers: "Forever!" Thus far, at least, Detroit has been right in its optimism. However, in more jaundiced and possibly less informed quarters, doubt on this score is frequently expressed; but it will not do to overlook the many refinements and economies possible with increased production. An example is in car-painting. The adoption of cellulose finish combinations now makes it possible to paint a car and turn it out within 24 hours. Even the Cadillac, which formerly took four to six weeks to paint, can now be finished in less than seven days. Such economies speed and cheapen production and at the same time hold inventories to a minimum.