Automotive news. [volume], March 30, 1940, Image 1

About Automotive news. [volume] (Detroit, Mich.) 1938-current

Image provided by: Central Michigan University, Clark Historical Library

                
Founded in 1925 as Automotive Daily News IN TWO SECTIONS . . .
Vol. 15, No. 2610
March Retail Sales Third Highest in History
DEALERS VETO PATMAN PROGRAM
Sparks
Studebaker Milestone*
We I)o Our Part
“Sealed Orders”
Old Friends Pass
By
Chris Sinsahaugh
pRIDE OF ancestry and jublia
tion over the first-year per-
Eormance of the baby of the
amily, the Champion, are respon
se for the dual celebration of
the House of Studebaker, which
is the reason for the second section
E r f this issue of Automotive News.
lo much have Paul Hoffman and
leorfce Keller to tell about how
they're gettin’ along in peddling
their product and talk about their
organization that it has required
112 pages of rotogravure to deliver
heir message to dealers and con
mmers. Automotive News is de
ighted to be the messenger boy in
his case, and we in the editorial
lepartment heave a sigh of relief
low that the big job is behind us.
* * *
THE DOUBLE anniversary cele
iration is based on the fact that
he House of Studebaker is 88
rears old and that it is the oldest
nanufacturer of vehicles in the
vorld, which takes in carriages
ind wagons of course, as well as
lutomobiles. The other half of the
louble anniversary is for the
iturdy Champion, which is having
ts first birthday this week.
* * *
THE IMPORTANT part the
Champion played in the success
he House of Studebaker has en
oyed in the past year is testified
o in the production of over 80,000
inits in the 12 months, which rep
esents about 60 percent of the cor
onation's total output for the year,
ind apparently it is responsible
»r the showing made in '39 when
let sales for all three lines showed
pi increase of 104 percent while
fce industry showed 44.6 percent
the roto section went to
reports on March sales have
to the desk of George Keller
show that his sales on all
®ree lines are being speeded up.
S> r instance, the first 20 days of
are reported to be 92.8 per
ahead of the same time last
B ar . 5,085 retail sales having been
the books show a gain of
■® percent over a year ago, repre
vted by 2,942 sales. Incidentally,
/g° si - 20 days are Keller’s best
Bee 1927. And his sales from
'■° ber through February, he says,
[I (See SPARKS, Page 15, Col. 1)
I In This Issue*
Registration* •’«««• 11
I*llll Events •
IJfAler* Tell Me ... I’»k ,,n 3-15
fl>doctlon ThU <•« •• t I/' 1 ' 1 J 1
i> r j r ,. Tat.
Met . .. “ ,K " “
The Neivspaper of the Industry
Total for Month
Is Estimated at
400,000 Vehicles
Knudsen Foresees 1940
As Industry’s Third
Highest War
By William C. Callahan
Managing Editor
DETROIT. —With retail
sales reports from leading
manufacturers available for
the first 20 days in March, a
total of from 375,000 to
400,000 new car and truck units is
indicated for the entire month.
This would mean that the current
month will be the third highest
March in the history of the in
dustry, being exceeded only by the
424,039 registered in March, 1937,
and the 424,070 registered in
March, 1929.
Inclement weather in many parts
of the country during the closing
10 days of the month may hold the
total down somewhat, but barring
this there is a chance that the
month will run even above the 400,-
000 mark.
The March sales this year, dur
ing the first 20 days of the month,
were running about 24 percent
above those of a year ago for the
industry as a whole, while the
seasonal gain over February was
approximately 30 percent. Average
seasonal gain in March over Feb
ruary since 1935, when the fall
model changes were introduced,
has been about 57 percent.
This year, however, sales during
January were unseasonally high,
running 31 percent ahead of the
same month in the previous year
and down only about 9 percent
from December. Normal seasonal
drop from December to January is
close to 20 percent. January this
year was the second best January
in the history of the industry.
Much the same picture obtained
during February when the month
(Continued on Page 2, Col. 1)
Minn. Wins Test on Power
To Tax Chain Store Units
WASHINGTON.—By a split de
cision, the State of Minnesota has
won a U. S. supreme court decision
in a case involving the validity of
the state’s chain store tax levied
upon gross sales.
The high court decision was ob
tained in an action by the state
against the National Tea Co. and
Allied Stores, Inc. Chief Justice
Hughes, Justices Stone and Rob
erts dissented from the majority
opinion delivered by Justice Doug
las.
The Minnesota law levies a pro
gressively increasing tax on chain
stores based on the number of
stores in excess of 10 and, in addi
tion, levies a tax on gross sales up
to 1 percent.
The state supreme court ruled
th.it the portion of the law taxing
DETROIT, MARCH 30, 1910
JBi
EMMET SHE All AN
Sheahan to Head
Ti re Division of
U. S. Rubber Co.
NEW YORK.—P romotion of
Emmet Sheahan to general man
ager of the company’s tire division
is announced by F. B. Davis jr.,
president and chairman of the
United States Rubber Co.
The tire division is to be a con
solidation of all tire activities of
the company heretofore handled
by the Automotive division and by
the U. S. Tire Dealers Corp. To
give effect to this consolidation of
Sheahan’s new duties, he has been
elected president of the U. S. Tire
Dealers Corp., succeeding L. D.
Tompkins in that capacity.
This is the second promotion of
Sheahan within the United States
Rubber Co. organization in a
year and a quarter. On Dec. 27,
1938, he was appointed general
manager of the A newly created
Automotive division, which divi
(See SHEAHAN. Page 8. Col. 5)
stores on a per unit basis was
valid, but ruled invalid the gross
sales tax.
The state contended in its appeal
that the gross sales tax is a valid
exercise of the police power of the
state to restrain what it considers
undue expansion of chain stores.
The supreme court did not pass
on the constitutional questions in
volved in the gross sales tax, but
remanded the case to the state
court for further consideration on
the grounds that it was not clear
from the state court opinion
whether its decision against the
tax was based primarily on federal
or state questions of law.
Justice Douglas said that if the
state court invalidated the tax be
cause it violated the state con-
CHAIN TAX, Page 8. Col. 2)
AN’s Straw Vote Totals
237 to 6 Against Bill
Ballots in the NADA’s Official Referendum
Reported Running 9 to 1 Against;
10,000 Vote Total Likely
By Pete Wemhofif
Associate Editor
DETROIT. Crushing defeat of the proposed Patman-
Horner regulatory bill, in the National Automobile Dealer
Assn, referendum which concluded Saturday, was indicated
from two sources late Friday:
A Automotive News' straw vote, which has been conducted
■ among dealer-readers for the past two weeks, shows a
smashing 233-to-6 vote against the Patman-Horner measure.
2 Unofficial report on balloting in the NADA poll indicates
a final ratio of at least 9-to-l against the bill which would
regulate the entire industry.
Final tabulation in the
NADA referendum is ex
pected to be announced some
time Monday (Apr. 1). It is under
stood that total votes cast in the
referendum will approximate 10,-
000, which would represent only ;
about one-fourth of the nation’s
41,000 dealers sent postcard ballots.
In line with their strong oppo
sition to the Patman-Horner bill,
dealers voting in Automotive News’
straw poll also voiced equal dis
like for federal legislation in gen
eral. The vote on this question
parallels the Patman-Horner bal
loting, totaling 233-to-5 against fed
eral legislation.
The ratio of 52-to-l against the
Patman bill, piled up in last
week’s tabulation of the straw vote,
was not maintained this week with
returns from farther sections of
the country. However, this week’s
ratio of 39-to-l against the bill
is still considered overwhelming.
Straw ballots, which in the first
week of the poll showed a pre
ponderance of interest on the part
of small-town dealers, continued
to flow in that vein during the
latest week. This is taken as an
indication that smaller dealers, who
had been expected to support the
Patman-Horner bill, are actually
opposed to the measure.
With returns during the past
from far western states, votes in
Automotive News’ straw poll were
obtained from virtually every state.
Th© Top Ten
PASSENGER CARS
First Ten In Registrations an
Reported In AN Today:
1940 1939
Pos. Make ’ Pon.
1— 108,199 Chevrolet 75,626 1
2 71,892 Ford 61,080 2
3 54,915 Plymouth 47,902 3
1— 36,019 Buick 25,274 4
5 27,497 Dodge 24,712 5
6 26,591 Pontiac 18,359 6
7 23,392 Olds. 17,867 7
8— 12,598 Chrysler 9,212 8
9 11,977 Studebaker 5,733—13
10— 10,887 Mercury 7,142 9
Total All Maken
428,543 326,387
For complete standings of all
makes, see Page 11. this issue.
$ 4.00 Per Y ear, 25c Per Copy
How Tlu*y Vo tod
Final results in Automotive
News’ straw vote on the Pat
man - Horner bill and federal
legislation are as follows:
PATMAN BILL
For—6 Against—237
FEDERAL LEGISLATION
For—s Against—237
Graham to Start
Shipping Models
Next Wednesday
DETROIT.—FinaI assemblies of
a new series of Graham-built cars
are scheduled to get under way
Apr. 3, with shipments going out
to distributors and dealers immedi
ately thereafter, it is announced by
R. E. Stone, vice-president in
charge of manufacturing at Gra
ham-Paige Motors Corp.
Calls for former employes went
out last week to augment the pres
ent force of 300 men who have
been working since mid-March on
sub-assemblies, and upwards of 700
men will be on the payrolls begin
ning Monday morning, Stone said.
This force is to be gradually in
creased until a normal complement
of men are on the job.
First cars to reach the final
assembly line are the new series
Graham “Senior” models, Stone
said. Final production and assem
bly of these models marks the
completion of the first of a new
three-phase program now under
way by Graham.
Second phase is the building of
a completely new line of automo
biles, named the “Hollywood” last
summer when plans for the new
car were launched. This car is
also now in production and will
shortly reach final assembly, Stone
said.
Last phase is the building of a
new "Clipper” line, scheduled for
late spring introduction.
Early production will be at the
rate of 240 cars a week, according
to Stone, with gradual increases as
additional models reach final
assembly. Shipments to distribu
tors and dealers are to get under
way this week.