Naked Statistics

BUSINESS & FINANCE

JANUARY AUTO SALES DOWN 26% AUTO FACTORY SALES UP IN JANUARY BY 26%

Both these headlines appeared in the daily press last week. Both were based on figures released by the Department of Commerce. Both compared January 1934 with January 1933. Together they offered a neat example of the fatuity of considering naked statistics. As everyone knows, production of most 1934 models was delayed by last autumn's tool & die makers' strike. With few exceptions, dealers did not have new models to deliver until late in January if at all. The decrease was calculated on the value of all automobiles delivered to consumers. The increase was calculated on the units sold to dealers. The fact that the change in both cases was 26% was nothing but a coincidence.

Fact remained that the Industry was experiencing the best first quarter in three years. Employment in February was at the highest point since September 1929. With unfilled orders still piling up. motor-makers feared only one thing: spreading strikes.

P: With his 1934 models well into production before the year-end, Henry Ford had a running start in the annual race for the title "Fastest Selling Car in the U. S." Still far in the lead last week. Henry Ford suddenly cut prices. Since it was not a flat cut but reductions varying by sections of the country, motormen assumed that Mr. Ford was meeting the lower prices which Chevrolet achieved by quoting delivered price instead of F.O.B.

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