Full Speed Ahead

The twelve-cylinder excitement in the voices of Detroit's automakers was un mistakable. American Motors President Roy Abernethy predicted "a whale of a good quarter." Visiting Washington, D.C., G.M. Vice President and Chevrolet General Manager Semon E. Knudsen described sales so far in 1963 as nothing less than "a boom." predicted that the year would turn out to be Chevy's greatest. In Los Angeles, Ford Vice President Lee A. Iacocca anticipated that the boom would last not one year but five, heralded the beginning of "one of the most exciting eras in the history of the automobile industry."

The enthusiasm was based on more than fond hopes. January's auto sales totaled 543,601, a 12% increase over January 1962, and a record for any January. The biggest sales rise was made by Chrysler, which is recuperating vigorously under the cost-cutting, fat-trimming prescription of President Lynn Townsend. Chrysler took 11.8% of the market in January, almost 2% better than its showing last year. General Motors, as usual, had the biggest share (55.6%), and its Chevrolet, Pontiac and Cadillac divisions all made records.

Much of last week's exuberance, however, was an understandable carryover from 1962, when Detroit produced 6,755,000 units for its second best year in history (after 1955). Fortnight ago, G.M. showed how good the year had been by announcing the largest sales and profits of any corporation in history. Last week Ford and Chrysler joined in with their own remarkable showings. Ford sales hit a record $8 billion. 21% higher than 1961, and earnings rose 17% to $481 million. Chrysler's sales of $2.4 billion were up 12% over 1961, but its earnings report was even more impressive: profits jumped to $65.4 million--a 489% rise. With its stock selling last week at $86 (up from $38.50 last summer), the company celebrated its success by announcing a 2-for-1 split and doubling its quarterly dividend to 50-c- a share.

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