WardsAuto Flashback – August 2014

85 Years Ago (August 1929): Output Booming; Sales Rising; New Models Bow

According to Cram’s Automotive Reports, predecessor to Ward’s Automotive Reports, monthly vehicle production in the U.S. has been running above schedule. “Almost without exception, predictions for each month have fallen below the output actually attained. In one or two instances the discrepancy has been as large as 20% to 30%.”

Actual output in July 1929, for example, is estimated by CAR at 500,000 units, “considerably above the amount anticipated.”

August output is expected to top that of July by at least 50,000 vehicles, the publication says.

Overall new-car sales in the first half of the year totaled 2,155,285 units, Cram’s says, up 37.9% from like-1928’s 1,551,767 deliveries.

This was due in large part to a 58.1% sales gain for cars in the low-price field, deliveries of which rose 58.9% to 1,709,972 units from 1,075,843 in like-1928. However, sales of “medium-price” cars fell 12.1% to 374,664 from 426,316 units in first-half 1928.

’39 Chevy’s sales lead narrows.

Auburn Motors says base prices for its all-new front-drive Cord (L29) will range in price from $3,095 for the Standard Sedan and Brougham to $3,295 for the Convertible Cabriolet, Phaeton and Convertible Sedan.

An optional equipment package including wire wheels with dual side-mount spares, spare-wheel locks, chrome-plated bumpers and dual “automatic” windshield wipers will cost $160.

Safety glass also is an extra-cost option. At the same time, the Cord division has taken a 50% stake in Columbia Axle with the option to increase its holding. The Cord is being built at the automaker’s Auburn, IN, plant.

Graham-Paige is launching its ’30-model lineup consisting of three 6-cyl. models and two powered by 8-cyl. engines.

Although the new cars represent “substantially increased value,” prices remain unchanged, starting at $855 for the Series-612 2-door sedan.

It is powered by a 66-hp, 207-cid (3.4L) I-6 in place of the prior model’s 62-hp, 190-cid (3.1L) I-6.

Automotive supplier Formica Insulation reports its Cincinnati, OH, plant is operating at maximum capacity of three 8-hour shifts, six days per week.

In particular, its ignition-products operations are having a difficult time keeping up with orders. On July 25 the company received “more general orders than any other day in its history.”

75 Years Ago (August 1939): '40 Production Outlook; No-Draft Suit; Chevy Lead Shrinks; Reo Reorganization

Car production in the ’40 model year will range between 3,600,000 and 3,750,000 units, forecasts Ward’s Automotive Reports, up from an estimated 3,390,000 units in ’39.

The forecast 6%-11% year-over-year gain will be far less than the expected 23% increase in ’39 from the 2,761,400 cars built in recession-year ’38. However, the outbreak of war in Europe and ongoing labor disputes could negatively affect the ’40-model production outlook, the publication notes.

GM claims patent infringement for vent window like that on ’40 Olds.

Calendar-year 1940 output likely will show a larger year-over-year gain than the ’40 model year, Ward’s says.

General Motors’ lawsuit against Motor Products over infringement of patents for its No-Draft ventilation system (vent windows) is expected to come to trial Sept. 15.

According to WAR, “Motor Products has produced about half of the vane ventilating units for Chrysler for the past several years” as well as similar parts for Lincoln-Zephyr, Ford, Mercury, Studebaker and others.

A “battery of extremely capable and well-known legal lights will take part in the case.”

Chevrolet’s sales lead over archrival Ford has narrowed in first-half 1939 compared with like-1938, WAR data shows.

’39 Chevy’s sales lead narrows.

Although Chevy sales in January-June 1939 totaled 46,600 units, up 37.9% from prior-year’s 33,804, Ford car deliveries of 41,400 units, a 53.9% gain from the prior year’s 26,900, have trimmed Chevy’s lead to 5,200 vehicles from 6,900 in first-half 1938.

Rounding out the low-price group, Plymouth sales totaled 28,800 this year, a 38.8% increase over prior-year’s 20,700 units.

Deliveries of all brands have posted year-over-year gains in the first six months, except Packard, down 18.2% to 2,900 units from 3,500, and Willys, off 4.6% to 881 units from 923.

Struggling Reo hopes replace ’39 models (shown) with redesigned ’40 line.

The long battle over the reorganization of Reo Motor Car appears near conclusion, according to WAR. The Securities and Exchange Commission is soon to issue a report to stockholders outlining the company’s finances.

“A strong emphasis on ‘voting trust’ or the like to insure a permanent management and board is in itself a likely protection against the possibility of a continuation of the recent proxy battles,” the newsletter says.

Once the matter is settled, Reo will be able to move ahead with the introduction of ’40-model trucks.

70 Years Ago (August 1944): Labor Disputes Threaten; Fisher Comeback Seen; Diamond T Dilemma; Battery Shortage Looms

Labor disputes helped prevent many smaller vehicle makers from reaching their July output quotas, resulting in the industry falling “substantially behind established projections for the month.”

The shortfall was estimated at 25%. High absenteeism and labor disputes resulting in slowdowns and walkouts cut short the supply of components such as axles, transmissions, bearings and carburetors.

The shortages were felt most acutely among independent manufacturers, with the highly integrated companies GM, Ford, Dodge and International Harvester, largely unaffected.

Four of the Fisher brothers quit GM for own firm.

Diamond T Motors faces a conundrum. Having had its contract to build halftrack trucks terminated, the company laid off some 700 workers.

Now faced with a sharp increase in orders for other war-related trucks, the manufacturer is unable to hire enough workers to meet the higher volume.

Reportedly, the War Manpower Comm. is making efforts to recruit enough people, especially in the South and Southwest, to alleviate the shortages at Diamond T and elsewhere.

In early August comes word that four of the five Fisher brothers, founders of Fisher Body works now part of GM, have resigned their executive positions with the auto maker.

Reports indicated they are planning to launch a new firm to “prepare for broad participation in postwar automotive business.”

Labor shortages endanger military truck output.

Hot on the heels of a looming tires crisis, it appears a shortage of batteries is in the offing.

The War Production Board has authorized the production of 19.3 million automotive-type batteries in 1944, but only some 8.5 million were factory-shipped through June.

With third-quarter shipments estimated at 4.5 million, just over 6.3 million will have to be manufactured in October-December to meet WPB’s quota.

Given that just 5.2 million batteries were made in fourth-quarter 1943, the industry is likely to fall about 1 million units short for the year, barring a substantial cut in military-vehicle demand.

60 Years Ago (August 1954):  Overdrive Upswing; OHV V-8 Revolution; Plymouth Ranked First; Mergers Make News

The upswing in demand for transmission overdrive units will make the device a sales weapon in model year ’55, contends WAR.

Although overdrive installations in first-half 1954 slipped to 8% from twice that in its ’48-’50 model year heyday, the decline was due in part to a slump in demand for nine of 11 makes offering the device, as well as increased demand for automatic transmissions.

However, the publication points out, that demand remains strong among buyers of lower-price cars, including a 50% take rate at Studebaker, 26.4% at Willys and 26.4% at Nash.

Pontiac joins V-8 crowd with ’55 models.

With  many “overdrive” models undergoing major restyling in the coming model year, “1955 should create a razor-like edge on the device as a sales weapon in this price class.”

Economy-conscious low-price car buyers are attracted by the average $100 price of overdrive as well as its promise of fuel savings, WAR says, adding that fleet owners also favor overdrive over automatic transmissions in some areas of the country.

Quietly and without fanfare, the automotive engineer will celebrate his greatest triumph with the introduction of the industry’s ’55 models, Ward’s tells readers in the Aug. 16, 1954, issue.

That’s when six additional car makes will introduce modern high-compression, short-stroke overhead-valve V-8 engines, including Chevrolet, Hudson, Nash, Packard, Plymouth and Pontiac.

The trend was started in ’49 with introductions by Cadillac and Oldsmobile, followed in ’51 by Chrysler and Studebaker.

De Soto and Lincoln stepped up to the plate with new engines in ’52. Buick and Dodge joined the race in ’53 and Ford and Mercury in ’54.

When the ’55 models bow, 16 out of 18 domestic car makes will have a modern V-8 engine available to buyers, “giving the car buying public its most efficient and economical transportation in 50 years of car making.”  

’55 Plymouth called best-styled Chrysler model.

Certain engineering sources rate all of the Chrysler new cars as “exceptionally well styled,” according to a story in a Ward’s special August Bulletin.

The “sources” rate Plymouth first in the styling department, Dodge second, De Soto third and Chrysler fourth.

Dodge is criticized for leaning a bit too much towards the ornate, the story says, but notes that it “could be that the woman influence in car buying would go for such features.”

Mergers and product sharing ventures making news this month include an agreement between International Harvester and Diamond T, allowing the latter to build certain International diesel-powered trucks as well as buy International components for its own models.

At the same time, body-builder Henney (ambulances and other custom bodies) is acquiring the assets of truck maker Reo Motors for $16.5 million and assumption of liabilities totaling $18.6 million.

The assets of bankrupt Federal Truck have been acquired by Mast-Fees Mfg. for an as yet to be disclosed price, while General Tire says it plans to acquire a 64% interest in Motor Products for $7 million.

On the other hand, White Motor and Mack Trucks have terminated their merger talks.

50 Years Ago (August 1964): 12 Millionth Buick; Disc Brakes Coming; Smog Devices Coming

Buick is expected to build its 12 millionth car sometime in December, WAR forecasts, citing all-time production of 11,821,000 vehicles through July 31.

Production of 336,000 cars in January-July exceeded annual output in every full year prior to 1949.

Buick is expected to build more than 500,000 cars in 1964 for the first time since its “golden age” of 1954-1956. Output in 1950 also exceeded the half-million mark.

Buick set to build 12 millionth car (’65 Skylark shown) in December, 1964.

Saying it wants to put the automotive disc brake “in perspective,” Ward’s says the brake system represents a new market in the U.S., marked by steady growth rather than a sweeping overnight change.

Pointing out that GM said as recently as 1963 “as a general application item, disc brakes are not the answer to the braking problem on a large part of our vehicles,” WAR notes that all major manufacturers now have programs to introduce them on at least some ’65 models.

Disc brakes, it says, were first introduced in England in 1902 and that auxiliary disc brakes have been in use since 1928. Noting that various single- and double-disc brake systems were tried and discarded between 1945 and 1955, the publication forecasts “a breakthrough in popular acceptance may be on the horizon for growing numbers of cars.” 

American Motors’ Marlin ready to meet ’66 California smog rules.

Automakers say they are ready to begin installing emission control devices, mostly the air-injection type, on ’66 models, reportedly at an average cost of about $25 per car.

The manufacturer devices appear to be considerably cheaper than the four aftermarket systems approved recently by the Air Resources Board in California, where the devices become mandatory beginning in ’66.

Those systems ranged in price from $80 to $100. However, GM, Ford and Chrysler are seeking 1-year exemptions for some low-volume cars. AMC says it is ready to meet the ’66 deadline for all models.

At the same time, New York and New Jersey are attempting to enact requirements similar to those in California. 

25 Years Ago (August 1989):  Orbital Engine Plant; GM F-Car Stalled; Caprice Timing Set; New Ford Plant

Ending months of speculation, Australia’s Orbital Engine says it has chosen a former GM Inland Div. facility in Tecumseh, MI, as the site to manufacture its unique powerplant.

Inventor Sarich with early Orbital engine prototype.

As well as other aid, Orbital’s parent, Sarich Technologies, is receiving a direct investment of $5 million from the Michigan state pension fund to lease and upgrade the site. Orbital is investing some $250 million in the project that it says will have the capacity to build 250,000 engines annually.

Noting marine use is likely to come first, the engine’s inventor, Ralph Sarich, says automotive engine production is slated to begin in 1993 with the first units being exported.

The engine is said to cut car weight by 8% and increase fuel economy by as much as 30%. The engine is expected to cost about 25% less to manufacture due to fewer parts.

Plans for re-engineered Chevrolet and Pontiac F-cars (Camaro and Firebird) for model year ’92 have been delayed as GM reportedly studies whether or not to continue production beyond the current generation.

Sources tell WAR the Van Nuys, CA, plant is expected to end output of the ’90 models in December and close for changeover. It will reopen in February 1990 building mildly facelifted ’91 models.

Chevy to launch redesigned ’91 Caprice in April 1990.

Internal reports suggest GM is having second thoughts about the future of the F-cars that have lost market share due to inroads from American and Japanese competitors such as the Dodge Daytona, Toyota Celica, Nissan 240 SX and others.

The F-Cars had been scheduled to change to a front-drive platform featuring composite bodies in ’89, but those plans were cancelled when Ford chose to retain the rear-drive Mustang instead of replacing it with the front-drive Probe as had been reported.

Chevrolet’s redesigned ’91 model B-body Caprice is expected to bow Apr. 19, 1990, as part of a “barrage” of new products “exploding” on the scene beginning in September.

Will ’91 Firebird be among last GM F-cars?

Buick will launch its new rear-drive Roadmaster B-car in about February 1991. Production of the new Caprice is slated to commence in late December, with output of the current version continuing through April.   

Ford says its new Wayne Stamping plant, located next to its Wayne, MI, car assembly facility, is on target to open before the end of this year.

The new plant will produce exterior body panels for the redesigned ’91-model Ford Escort, dubbed CT20, that goes into production at the Wayne Assembly plant in early 1990.