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Reo is under the new-old management of Chairman Ransom Eli Olds, who founded the Reo company in 1904 but who had been in virtual retirement for ten years when, in 1934, an intracompany row brought him back to active leadership. During the first half of 1935, Reo made $42,156 but even this tiny profit was welcome after five consecutive years of deficits. Of late Reo has become primarily a truck maker, in 1934 turning out only 3,854 passenger cars as against 5.035 trucks. Government purchases of trucks have supplied a very substantial portion of Reo's business but passenger-car sales thus far in 1935 have barely passed last year's total. Willys-Overland, in receivership since February 1933, sold its Canadian plant, and a subsidiary in Elmira, N.Y. has been seized by the sheriff for nonpayment of taxes.
Big Three. Meanwhile, the Big Three have grown bigger & better. Chrysler, which last summer moved Walter P. Chrysler to the chairmanship and elevated Kaufman Thuma Keller to the presidency, made $18,000,000 in the first six months of 1935. nearly twice its earnings for the full year of 1934. Nine-month sales for the Chrysler group totaled 488,625 cars, about a 40% increase over the 1934 period and about 23% of all U. S. sales. The stock has been a big favorite in the current bull market. On April 1. 1935 it sold at, 34, closed last week at 88.
General Motors last week reported nine-month earnings of $114,482,000 against $92,445,000 for the 1934 period. Nine-month sales for the G. M. group totaled 763,406 cars. Brightest members of the General Motors family are Oldsmobile and Pontiac, both selling at about twice their 1934 rate. Neither Buick nor Cadillac has shown much sales increase thus far in 1935 but, in addition to a lower-priced Buick, General Motors is also bringing out a 1936 Cadillac at $1,645—a $700 decrease from the lowest price in the 1935 line.
Ford profits, as usual, remain a mystery. This week Ford Motor Co. is bringing out a cut-rate Lincoln.
*These and other nine-month sales figures include only 32 states for September.