AUSTIN MOTOR CO’S SUCCESSFUL BREAK INTO U.S. MARKET

Bay of Plenty Beacon, Volume 13, Issue 10, 20 October 1948, Page 7

AUSTIN MOTOR CO’S SUCCESSFUL BREAK INTO U.S. MARKET

Now that the Austin Motor Company’s subsidiaries in the Western hemisphere, The Austin Motor Co. Ltd. (England) of New York and the Austin Motor Co. (Canada) Ltd. of Montreal, are firmly established, the story of their creation nine months ago and of their meteoric career can be revealed in some detail; and a fascinating story it makes. So recently as September of last year The Austin Motor Company of Birmingham was granted permission by the Bank of England to use the sum of 86,000 dollars for the establishment of its projected American business and 30,000 dollars to start operations in Canada. In the nine months which have elapsed since the Austin Company first invaded these markets their American and Canadian Distributors and Dealers have sold cars and spares worth 8,500,000 dollars (excluding federal tax) in the U.S.A. and about 3,250,000 dollars (excluding Sales and Excise Tabes) in Canada. Sales and Service staffs have been built up in both countries, enough money has been accumulated to cover administrative costs and an advertising campaign amounting to nearly half a million dollars, and despite these considerable expenses the Austin Motor Company has brought back to Britain 7,000,000 dollars from the U.S.A- and more than 2,250,000 dollars from Canada. Much of the discrepancy between the returns frorri these two sources is accounted for by the fact that the Canadian market shut down completely for 3£ months from the middle of last November to the end of February because Canada was running short of American dollars and suspended imports to take stock of the situation, and, of course, closed its doors to imports from America and Britain simultaneously.