Necessary Realism

"Two months ago, we were very optimistic," said Seattle Chrysler Dealer Carl A. Hahn. "Today--well, we're just optimistic." Across the U.S. last week, dealer after dealer echoed Hahn's words. Despite continuing forecasts for 6,700,000 cars in 1957 and a 10% jump over 1956, some disturbing omens were cropping up; autos were not off to the sizzling start everyone expected. Noted Ward's Auto Reports: "Some of the tremendous optimism may now have been sprinkled with necessary realism."

Losing Ground. The realism was already apparent in the production figures. In December the industry fell 85,000 units behind December 1955's pace of 682,000 cars. Surprisingly, General Motors accounted for most of the slump. After racing away with 52% of the market in 1956, G.M. was down to 47.1% while Ford picked up from 28.7% to 31% and Chrysler jumped from 15% to 18.4%. Said Ward's: "The same shares of production are expected to continue in January and may head into February and March." Detroit's automen thought that the spread might even become greater. Both Ford and Chrysler were starting to schedule overtime production at many plants, while General Motors had cut out all overtime in its five big auto divisions.

Apparently, for the first time in many a year, G.M. was losing ground to its competitors. The new Chevrolets and Pontiacs were largely face-lifted 1956 models, and though Buick, Oldsmobile and Cadillac have new bodies, the changes are nowhere near as striking as those on the new Ford and Chrysler lines. As a result, Ford and Chrysler dealers all across the U.S. reported good sales, while many G.M. dealers wore worried frowns.

With a backlog of 400,000 orders, 66% better than 1956's final quarter, many Plymouth, Dodge, DeSoto, Chrysler and Imperial dealers had more customers than they could handle. "After years of giving us a clinker," said one gleeful Denver Plymouth dealer, "we finally have a car that can battle Ford and Chevy. They're all sold before I get them."

Imperial Design. The hottest car of Chrysler's line was its rakish new Imperial, which for the first time, along with Lincoln, was giving Cadillac competition in the high-priced field. Said one Chicago Imperial dealer: "Our problem is more supply than demand." It was a problem that Chrysler President Lester L. Colbert promised would soon be licked. This week he announced that overtime production schedules would push the company to 5,300 cars daily and fill the pipeline in short order.

By contrast, some Chevrolet dealers were down as much as 25% from 1956, and Pontiac, Oldsmobile and Cadillac also reported slower sales. As for Buick, which has been G.M.'s fastest-rising star ever since 1954, when it snatched third place away from Plymouth, the reports of many dealers were of a sudden, sharp slump. "How are Buicks doing?" grumbled one Manhattan Buick dealer. "Fine, when they get out on the road, but who can get them out on the road? Our sales are very slow. People just aren't buying."

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