Business: Auto Outlook

The automobile industry finds itself in a peculiar dilemma this Spring. Under the extraordinary past purchasing of cars in the U.S., production facilities of the leading car manufacturers have been greatly increased. This has in turn led to stiffer and stiffer competition and a tendency to cut prices on the basis of quantity production. As long as more and more cars could be sold, this policy of expanding plants and reducing unit profits is, of course, perfectly sound.

The real trouble with the industry, however, is in its distributing end. Dealers, owing to competition, have...

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