1923 COMPETITION TO TEST AUTO TRADE

The New York Times
November 26, 1922

Survey Indicates That Well-Managed Companies Will Be Strengthened.

Keen competition is expected in the automobile industry of the United States during 1923. This competition, according to a survey just competed by the Motor and Accessory Manufacturers' Association, is expected to strengthen the position of the well-established, well-financed and well-managed companies, while the so-called weaker companies will be put to a final test. The association canvassed its 423 members, who are the principal makers of parts, units and equipment for the industry.

The salient ideas stressed by the executives of the various companies in their views sent to M. L. Geminway, General Manager of the Association, were unremitting vigilance in granting credit, optimism tempered by caution and prudence qualified by forward-looking faith in the dynamic progress of the automotive industry.

The symposium was based upon replies to this specific question:

"What, in your opinion, is the automotive outlook for 1923, with respect to finance and credit!"

A. R. Erskine, President of the Studebaker Corporation, representing the vehicle manufacturers, said:

"The outlook for 1923 in respect to credit, finance and sales is most encouraging. I believe the volume next year will equal, if not exceed, this year."

Alfred Reeves, General Manager of the National Automobile Chamber of Commerce, said a few car manufacturers may hve some difficulty, but, on the whole, the credit and financial outlook was good. He points out that arrangements are being made with 22,000 bankers throughout the country to get credit for dealers, particularly in the carrying of floor stocks, while more and more finance companies are entering the field to handle the retail sales.

G. Brewer Griffin, manager of the automotive department of the Westinghouse Electric and Manufacturing Company, says: "In general we are watchfully optimistic regarding the automobile vehicle business for 1923, as the general business of the entire country promises to be better than during 1922. Most cars sold this year have been sold in cities and towns. It is thought that the small towns and the farmers will begin to buy sook after the first of the new year.

"Many vehicle manufacturers seem to believe that unless they and their distributors accumulate a stock of cars this Fall and Winter, there will be a shortage against Spring demand. If this view has a foundation in fact, then we believe that there will be no difficulty in financing the business."