Answer from the Hustlers

In the face of rugged competition from G.M. (see above), the rest of the auto industry is hustling.

Chrysler, which has lagged behind the style parade, this week showed off a pair of new low-slung experimental models, the Plymouth Belmont and the Dodge Fire-arrow. Though Chrysler sold 1.6% fewer cars (1,224,000) last year than in 1952, it still leads the horsepower race with its 235-h.p. engine. But its conservative styling has not helped sales, and it has already been forced to cut back production of some of its 1954 models. To remedy the situation, Chrysler Corp. expects to incorporate some of the ideas of its racy experimental cars in a complete model change within the next few years.

Second-place Ford has spent $60 million on retooling to give its 1954 cars more powerful engines and sleeker lines. Ford was the only automaker besides G.M. to gain more of the market last year (it gained 2.1%), and is anxious to increase its 25.3% share in 1954. Ford has set aside $500 million for expansion, much of it to boost Ford production up to Chevrolet's 35,000 weekly level. Said Henry Ford II: "We hope we can be first in 1954." While he looks for about a 10% drop in overall auto output this year, Ford foresees no decline from his company's output of 1,500,000 cars last year. Next year, Ford is planning a complete changeover of body styles for 1956, then will revive its famed Continental.

V-8s & the $1,300 Runabout. The independents also all lost ground to G.M. and Ford in 1953. Their difficult position was highlighted last week by the merger of Nash and Hudson into a new company to be called American Motors Corp. While Nash has been doing well, Hudson sales have been down. By merging purchasing, research and other departments, they figured they could be stronger and save money all around. Together, they form the fourth-biggest auto company in the U.S., with assets of $355 million and more than $100 million in operating capital.

The deal was a straight stock transfer: three shares of Hudson (now listed at 11 1/8) for two shares of American and one share of Nash-Kelvinator (listed at 17 3/8) for one share of American. Under Nash President George Mason, American will continue to make both types of cars in separate divisions, and also bring out a pair of brand-new designs to boost sales --a small Nash four-passenger sports car, to list at about $1,300, and a Hudson sports-type car, the Italia, that will probably sell for around $6,000.

Cutbacks. Studebaker, which introduced the first mass-produced sports car (TIME, Feb. 2, 1953), sold fewer cars (186,484) than expected last year, and has already cut back production on its 1954 models. Nevertheless, Studebaker President Harold Vance, who feels that heavy dealer inventories will be worked off by the end of the first quarter, expects a sharp upturn in spring and total sales of at least 160,000 this year. Kaiser Motors is only in limited production for 1954, has made just minor changes in its three-car (Henry J, Kaiser, Aero Willys) line. Packard, which only face-lifted its 1954 cars but boosted horsepower (to 212), has a new V-8 engine in the works and a completely new body on the drawing boards for 1955. But Packard is having its troubles, has stopped producing cars for a week and laid off 7,500.

From this evidence, everyone expected one of the toughest selling years in history. To the U.S. car buyer this means that he will be able to buy increasingly better cars at a lower price. The automakers will probably keep their prices at current levels, but the dealers, many of them with heavy inventories, will be more than willing to cut their prices by big trade-in allowances.

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