AUTO DEMAND SPURS TIRES AND BODIES

The New York Times
December 31, 1922

Manufacturers of Parts Speeding Output to Meet Requirements of 1923.

ORDERS ARE INCREASING

Industry In General Operating Under High Pressure—No Shut-Down for Inventories.

Automobile tire manufacturers have been unusually active this month preparing for a large demand for tires in the Spring, according to reports in the trade.  Producers are replenishing stock that had reached low levels. Manufacturers also report an increased number of orders for Spring delivery, indicating an unusually active season.

Manufacturers of parts also report continued activity in preparing for requirements for the first quarter of 1923.  A few plants are not operating at capacity at this time, but it is said that the majority have sufficient business on their books to keep them at top-speed productions.  This, according to trade advices, is one of the surprising features of December conditions, especially in view of the fact that October and November were two remarkably good months.  Car manufacturers are increasing their orders so much that parts makers will be compelled to operate at high pressure to meet them.  A consistent gain is also being shown in the manufacture of trucks, with promises of more pronounced advances during the first quarter of the new year.

Regarding the automobile industry in general, Automotive Industries says: "Evidence that the industry is operating under high pressure of orders is given in the advices that few of the major automobile producing plants will direct a complete cessation of manufacturing  activities during the annual inventory taking period.  Some of the factories may shot down for a brief time after the first of the year, but the majority will take stock while operations continue, although on a necessarily reduced schedule.

"This situation results not only from the exceptionally good current demand but for the reason that the shortage of closed-car bodies has resulted in the accumulation of back orders in the hands of the car manufacturers.  Some plants within the last few weeks have been forced to a modification of their daily programs because of the body scarcity.  Body-producing plants still find their facilities inadequate to meet the unprecedented volume of business at this season of the year, and even with builders working at capacity no prompt delivery of finished products is possible.  Stocking of open cars, chiefly for Spring.

"The unusually heavy Winter business is attributed principally to the popularity of the closed car: but a factor less important, but still to be considered, is the success with which the so-called, sport model is meting,  Manufacturers have been expanding their schedule gradually to provide for a larger percentage of production for this type.  The arrival of real Winter weather in the Detroit  zone added to the transportation difficulties, both as to finished cars and materials.  Deliveries of cars are still far behind."