Back on the High Road

The moneyed and often enigmatic U.S. consumer will buy considerably more cars in 1959. In its annual survey of consumer buying intentions last week, the Federal Reserve Board reported that 7.6% of those interviewed said they would buy a new car this year, v. only 6.9% in recession 1958. On that basis, FRB expects sales between 5,000,000 and 5,500,000, v. 4,200,000 cars sold last year.

February production of 478,000 cars was a jump of 22% from 1958's low level, yet nearly 100,000 units short of both 1956 and 1957. The comparison can be misleading, since suppliers' strikes have braked output, notably at Chrysler, and the industry is only now starting to roll in high gear.

A better gauge is sales, especially in February, which automen consider one of the key months this year. There the picture is increasingly bright. Sales were up 26% over February '58, with 405,300 cars sold. Inventories are 15% below 1958 levels, with little buildup in most lines. Leaders for February, in order:

1959 1958

Chevrolet 115,000 92,339

Ford 110,500 71,830

Oldsmobile 30,000 24,780

Pontiac 29,700 18,551

Rambler 23,400 9,055

Buick 19,500 21,343

Plymouth 18,000 27,066

Cadillac 12,600 9,763

Mercury 12,300 9,689

Foreign Cars 39,000 20,075

Aside from Buick's decline and Pontiac's surge (Plymouth's drop was largely strike caused), the big car surprise of 1959 is the fast pace of the skillfully restyled Ford against the flashy new Chevy. With a strike at G.M. to give it an initial lead, Ford took off running, has sold something like 500,000 cars for the model year so far, and still leads by 30,000 units. Chevy is creeping up, but it will have to do better than February's slim margin to hold its 1958 title of No. 1 seller.

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