George Does It

American Motors President George Romney, who has staked the future of his company on the small car, last week raked in a fat pot. In the first quarter (which ended Dec. 31) of its current fiscal year, American Motors had a net profit of $4,948,736 v. a loss of $2,994,613 in the same period a year ago. The first quarterly profit in two years was due to the upsurge in Rambler sales, which rose 35% over last year's first quarter as production climbed to 41,492 cars.

Output in the first quarter of 1958, said Romney, is scheduled at a higher rate than in the last quarter and well above the rate a year ago, even though other automakers are still trimming production to bring it in line with sales. Romney does not expect the quarterly earnings of 89-c- a share to continue for the whole fiscal year because the company will have to charge off heavy expenses for vacations, model changeovers, etc. in its fourth quarter, which ends Sept. 30. But he expects a "substantial profit" for the year.

In his fervent campaign to sell the small car to the U.S., Romney has missed no chance to trumpet his cause. Last week he got another chance--at the expense of New York City's Mayor Robert Wagner. The mayor sternly called on Detroit to quit making cars bigger, and in letters to carmakers decried the "continuing burdens" that big cars are placing on cities. In the same space, parking lots can handle 15% fewer cars than ten years ago, said he, while prewar garages handle 40% less.

Romney loudly agreed, then added a snapper. "Two Ramblers can be operated for the cost of the official car you are driving," he wired Wagner. The mayor rides in a seven-passenger 1955 Cadillac limousine, which is 19 ft. long v. 14.8 ft. of a Rambler American, costs $822 a year to maintain, not counting a chauffeur's annual salary of up to $4,865. Moreover, the city runs about 65 motor mastodons (Cadillacs, Lincolns, Chryslers, Packards) for conveying top brass, as well as 149 medium ones (Buicks, Mercuries, Dodges, Pontiacs, De Sotos) for lesser lights.

Ride a Rambler, Romney urged Wagner, thereby "benefiting taxpayers as well as taking leadership in reducing traffic congestion and parking problems." But the mayor politely declined the offer from Romney to place three Ramblers at Wagner's disposal for test-driving.

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