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The article discusses the evolution of the U.S. automobile industry in the 1920s. During the industry's first phase of development it was perceived that they were producing novelty items. The initial stages were marked by inventory problems, refinement of product, and public introduction to automotive transportation. The stage of industry expansion began in 1910. The principle responsibility of the industry at this juncture is the extension of sales in the domestic market. Analysts predict that the next phase of development will be one in which annual sales of automobiles will be of the replacement variety. They estimate that production demands for automobiles will eventually equal the present output.

The article discusses methods of wholesale distribution in the U.S. automobile industry in the 1920's. The distributor system separates the responsibility for production and distribution. Under this plan the automobile manufacturer centers their attention upon production and its related problems. The distributor is responsible for the placement of dealer contracts. Another method of distribution is the branch system. This system employs the use of direct consumer marketing techniques. The policy has developed with and is influenced by certain business practices. These include large-scale machine production and national advertising techniques.