Grounds for Cheer

As every new-car buyer knows, there is no thrill comparable to a fast getaway. This week automakers started a new quarter and a new year with scheduled production 85% ahead of the final quarter of 1959. Between now and March 31, the industry expects to produce 2,250,000 cars. It will be the largest first-quarter production in history, if there is no labor trouble. Automen predict that 1960 sales, including 500,000 imports, will soar above 7,000,000. American Motors'George Romney, most enthusiastic of the lot, forecasts up to 7,500,000.

Behind the industry's heady optimism lies the realization that, despite the steel strike, 1959 was a good auto year. Total output was 5,588,733 cars, a 32% gain over the 4,244,045 in 1958. Another cause of optimism was the depleted state of inventories. Unsold new cars in showrooms or in the supply line hit 976,390 on Aug. 1, but with the auto shutdowns the inventory dropped to 401,427 in December, the lowest total for the month in three years.

Another big cause of the industry's cheerfulness was the hearty welcome given to compact cars. American Motors in 1959 turned out 401.440 Ramblers, an 87% gain over 1958, thereby lifting the Rambler from seventh to fourth place, barely a bumper behind Plymouth. If Plymouth's output of 19,726 Valiants is excluded, the Rambler actually was the third largest selling car in 1959. Next year, predicts Romney, compact and small cars will account for 2,340,000 sales, of which more than 500,000 will be Ramblers. To step up production. American will hire 7,000 more people, add a third shift soon to its final assembly plant at Kenosha, Wis.

Chrysler's Dodge Division reported that the first two months of the 1960-model year showed a 78% sales gain over 1958, in good part owing to the warm reception given to Dodge's smaller Dart. Studebaker wound up 1959 with output of Larks and Hawks more than 170% ahead of 1958. and no signs that the company is suffering from newer compacts. Particularly pleased with its compact-car entry was Ford. Partly because the Ford Division turned out 101,000 compact Falcons to 79,603 compact Corvairs produced by Chevrolet Ford in 1959 beat Chevy out for first place in the auto production race, the first time since 1935. Ford executives say that the company may make 400,000 Falcons this year. Already, Ford has switched a New Jersey Mercury plant to production of Falcons and of Ford's second compact-car entry, the Comet.

The totals in the 1959 production race:

MAKE 1959 Output 1958 Output 1958 Rank

Ford 1,528,523 1,038,560 2

Chevrolet 1,423,214 1,255,935 1 1

Plymouth 414,055 367,296 3

Rambler 401,440 217,332 7

Pontiac 387,976 219,823 6

Oldsmobile 365,535 310,795 4

Buick 232,497 257,124 5

Dodge 194,271 114,206 10

Mercury 157,351 128,428 8

Studebaker 153,643 56,869 11

Cadillac 138,527 125,501 9

Chrysler 69,273 49,513 12

De Soto 41,322 36,556 13

Lincoln 30,500 25,871 15

Edsel 29,677 26,563 14

Imperial 20,969 13,673 16

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