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Thus far this year, Ford is selling nearly one car out of every three; Chevrolet not quite one car out of every four; Plymouth about one out of every seven.*
Show. The New York Automobile Show opens this week, two months ahead of its traditional date. President Roosevelt asked the industry to advance its full-dress parade from winter to autumn in the in hope of evening up production, leveling out employment, extending the selling season. Automobile executives did not feel able to refuse the Administration's request after concessions made to them in the disputed Section 7A of the late NRA. With the early show and a pre-Christmas motor boom, fourth quarter sales may reach 900,000. Forecasts of 1936 production range from a modest 4,000,000 to a generous 4,500,000. The industry increased production 45% in 1934 over 1933, and will make nearly a 40% increase in 1935 over 1934.
Independents. Outside General Motors, Ford and Chrysler there are only ten U.S. automakers with any appreciable volume. In addition to Packard, they are Studebaker, Fierce-Arrow, Hudson, Nash, Hupp Auburn, Graham-Paige, Reo, Willys-Over-land.
Studebaker went into receivership in March 1933, emerged in March 1935—in itself a remarkable accomplishment since U. S. motorists usually give a receivership car a bad name, proceed to hang it. Studebaker's $4,876,000 loss in 1933 was cut to $1,462,000 in 1934. From March 9, 1935 (end of receivership) to June 30, losses were held to $88,000.
Head of Studebaker is Paul Hoffman, onetime Studebaker salesman, later Studebaker dealer in Los Angeles, then (1924) Studebaker vice president in charge of sales, finally (1933) Studebaker co-receiver. As Studebaker sales manager, he adopted the "Friendliest Factory" slogan, invited all disgruntled dealers to bring their kicks to him. When the company came out of receivership, President Hoffman made an announcement "to our competitors," said, "A great majority have given us a square deal and a chance to get on our feet again. ... So thanks— and look out." Last week Studebaker competitors were looking at Studebaker's nine-month sales (30,191) which were running slightly under the 1934 rate.
Fierce-Arrow is that rarity among corporations, a grass widow. It was married to Studebaker in 1928 but during Depression both parties might well have pleaded nonsupport. Divorce came in August 1933 when Studebaker receivers sold Fierce-Arrow to a group of Buffalo businessmen for $1,000,000. Nine-month sales in 1935 were 583, far behind the 1,399 sales for the same 1934 period.
Hudson closed 1934 with working capital a thin $1,700,000, a year's deficit of $3,239,000. By Sept. 1, 1935, working capital was up to $10,600,000, thanks, in part, to a $6,000,000 loan from the New York and Chicago Federal Reserve Banks. Hudson, largest of the independents, sold 300,000 cars in 1929, dropped to 38,000 in 1933. Sales for the first nine months of this year came to 56,676 cars, mostly Terraplanes, and Hudson may make a small 1935 profit.