(See front cover)
In Chinese terminology 1929 was the Year of the Serpent, 1930 the Year of the Horse, 1931 the Year of the Sheep. 1932 the Year of the Monkey. U. S. automobile men, who produced 5,621,000 cars in 1929, might have little objection to these names: 1930 (3,510,000 cars) was comparatively a year for the horse; 1931 (2,472,000 cars) left the motor industry looking rather sheepish; 1932 (1,431,000 cars) made monkeys of those who had high hopes for an automobile comeback. To the Chinese, 1933 was the Year of the Cock, but U. S. motormen would have the right to insist that it was the Year of the Automobile.
For in 1933 the automobile industry stalked out of Depression wearing all the airs of chanticleer. It fashioned some 2,040,000 cars, 42% above 1932. Its sales not only bulged in May and June when all industries were booming, but afterwards, when other industries felt a reaction, it continued making headway. In darkest November it did 108% more business than in November 1932. And in spite of a two-month strike of tool and die makers, in spite of mechanical and style changes which seriously retarded the production of new models, the industry came into the New Year as if 1933 were but a preliminary lap and the National Automobile Show which opens this week in Manhattan were the starting line for a real exhibition of speed.
All this was fortunate for motormen not only from the standpoint of profits but of privileges. The motor industry has become the prize pupil in Franklin D. Roosevelt's school of Recovery. The growth of automobile business helps to relieve unemployment, helps to keep the steel mills busy, helps to use up the surplus of gasoline, helps to make profits for manufacturers of tires and many another accessory. For all these things the Administration is thankful. Some of its gratitude was publicly acknowledged last month when the automobile code came up for renewal. Motormen were determined to continue the merit clause in the labor section. Although the Administration regretted having allowed that section to slip into the original code, General Johnson and the President quietly accepted a renewal of a provision which no other industry has succeeded in wangling for itself.
Exit v. Entrance. When the automobile went into Depression the average (factory) price per car was $829. When it came out in 1933 the average price was $630. This difference represents, in part, price reductions. It also represents the public's purchase of relatively fewer expensive makes, of relatively more cheap makes. This fact leads to still another big difference between the automobile's going-in and coming-out. In 1929 the sales of passenger cars were divided as follows:
General Motors 40%
Ford 33.7%
Chrysler 8.9%
Total Big Three 82.6%
Total all other makers 17.4%
Since the Big Three, at least until recently, have been the only makers of the lowest price cars which Depression made big sellers, the 1933 sales figures (approximate) show the following change:
General Motors 44.6%
Chrysler 25.3%
Ford 20.4%
Total Big Three 90.3%
Total all others 9.7%