Big Business

Sun (Auckland), Volume II, Issue 438, 21 August 1928, Page 7

Big Business

Romance of ChryslerDodge Amalgamation In tho history of an industry replete with the romance of big business, the Dodge-Chrysler merger takes precedence as the most starling development in many years. Not even the sale of Dodge Brothers in 1925 for 146,000,000 dollars cash can match the latest move for interest and significance, says an article in “Automotive Industries.” Although the news of the culmination of the negotiations caught nearly everyone unawares, some such eventuality had been regarded as inevitable by those who had closely watched the meteoric rise of the Chrysler Corp., and who knew something of the personality of its chief. Walter P. Chrysler. Expansion had strained the physical capacity of the company and further progress along the course already charted clearly called for radical measures. Expressed in figures, the merger makes possible a yearly production for the combined factories of around 1,000,000 vehicles. Th merger, not less significantly, will give Chrysler an interest in the truck field. The notable success of the Dodge-Graham organisation in this respect has won the sincere admiration of observers and has been of great value to the dealers. The inclusion of trucks will aid materially in giving the Chrysler combination a rounded line. Total assets of the Chrysler company at the end of 1927 were 103,894,681 dollars, and of Dodge Brothers 131,569,968 dollars, for a combined total of 235,364,649 dollars. Unit sales of the companies during 1927 were Dodge: 205,260, calued at 174,000,000 dollars, and Chrysler 192,083, valued at 172,000,000 dollars. These figures are sufficiently impressive, but the men of the industry will appreciate even more some of the factors not so readily expressed in arithmetic. Two of the finest dealer organisations selling motor vehicles will be brought into one family, although as concerns production and distribution, the two companies will continue to have separate entities. Centralised control with decentralised operations would appear to be the plan from the preliminary statements issued. LIGHTNING PROGRESS The present Chrysler Motor Corporation is an outgrowth of the Maxwell Motor Corp., which Mr. Chrysler joined in 1920. Mr. Chrysler was then executive vice-president and general manager of the Willys-Overland Co. He had entered the industry in 1911. His first automotive association was with Buick, and a notable reorganisation of that company's production led to his appointment as president. A man of tremendous ambition and inflexible purpose, Mr. Chrysler, starting on the Maxwell-Chalmers job, plunged into the task at hand; holding off creditors while reorganising production and launching a vivid sales campaign. / Slowly at first, but then swiftly, the' company was brought to prosperity, the most important development of the ensuing years being the introduction of the Chrysler car in 1924. The following years the company’s name was changed to the present form. In 1921 the company had a run-down factory and 7,000,000 dollars borrowed working capital. There were mortgages and notes totalling 16,000,000 dollars. The market value of the outstanding stock was only 19,325,000. At the end of 1927 net working capital was 42,379,332 dollars; the only funded debt was 1,168,000 dollars in Maxwell Motor Corp. mortgages; and the vastly expanded plants were models of new equipment and efficient layout. The market value of the securities was 258,000,000 dollars.

WHAT IS A DANGEROUS SPEED? CHANGES WITH THE TIMES That a speed which might be regarded as risky a few years ago is perfectly safe to-day is an accepted fact; but it is difficult for the modern motorist to realise that less than 30 years ago a speed of 12 miles an hour in a motor-car was considered risky and was not recommended by the car manufacturer. The following extract from the 1592 catalogue of Panhard and Levassor, the first firm to build petrol-driven cars in France, is an interesting confirmation of this fact. “Speeds: The cars have three speeds, a small speed, an intermediate speed, and a high speed. The high speed is generally adjusted to i 1 miles an hour. In level or slightly rolling country, and particularly with the two-passenger model, it is possible to attain higher speeds, up to 12 miles an hour; but these high speeds call for the closest attention on the part of the operator and are not always to be recommended. The low' speed is used on hills and on poor sections of roads. In California a shattered car has been placed on the roadside with a warning placard as a reminder to motorists of what to expect as the outcome of reckless driving.