Dealers Take Warning

In preparing the way for new car ceilings, OPAboss Chester Bowles last week hinted that car manufacturers may be granted a small price increase. But auto dealers would be expected to absorb the increase, sell cars at 1942 prices.

Anticipating a protest from dealers, Bowles explained that the auto retailers' prewar mark-up of 22-25% on cars was cut to 12-13% by losses on high trade-in allowances. For the next few years Bowles thought that dealers would be able to keep trade-in allowances low. Thus they could get along with a smaller new car markup, more than make up any difference by greater volume. Last week the Ford Co. added weight to Bowles's argument. It announced that it already has orders for 300,000 cars.

Said Bowles: "If any auto dealer complains of hardships to himself, his children or his grandchildren, I would like to get up a little pool to buy his distributorship. I can't think of anything I'd rather own in the next three years."

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