The Little Giants

European automakers are doing peak business in the U.S. Although their sales are only about 1% of the U.S. total, in the first four months of this year they jumped to 24,154 v. 12,653 for the same period a year ago. Biggest increase is in the sale of Volkswagens, for which there is now a three months' wait.

Last week Volkswagen, which is West Germany's top manufacturer, reported record output of 329,893 cars in 1955, said that it expects to produce 400,000 this year. The entire West German industry is doing so well (283,000 cars in the first four months this year) that the Bonn Republic claims the title of world's No. 2 automaker (after the U.S.).

Volkswagen, which exported 34,000 models to the U.S. in 1955, expects to ship 40,000 this year and might be able to sell 50% more. But other business is too pressing. Its deliveries in Sweden are four months behind, and Germans must wait up to eight months. Other West German manufacturers are also doing well. Exports of the sleek, expensive Mercedes Benz are up 20%; Porsche has already shipped 1.034 cars to the U.S., almost as many as in all of 1955. Even the French industry is buzzing at a record rate.

Only the British industry, once Europe's leader, seems to be weakening. Worldwide exports have fallen catastrophically--from 177,000 cars in '558 first five months to 14,000 in the corresponding period this year. In the U.S., British cars, once the foreign pace setters, have become a poor second to West Germany's.

It is the small foreign car that is selling well in the U.S., and Volkswagen's Boss Heinz Nordhoff summed up the reason: "The longer and sleeker they build them in the U.S., the better we like it."

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