HOW NEW ZEALAND LOST 156 MOTOR CARS

Chronicle (Levin), 26 May 1947, Page 2

HOW NEW ZEALAND LOST 156 MOTOR CARS

— -P^ess Assoclatiov

By Telegraph-

AUCKLAND, May 25. Because Government officials refused to overJook an import 'control teChnicaJ ity 150 buyei'8 who could have owned 1947 po^t-war American motor-cars may be disappointed. This was nientioned by Mr. Dewey W. "Smith, executive vjcepresident of the Studebaker Exporl Corporation of the United States who arrived by flying-boat from Sydney on Saturday to attend a conference of motor dealers at Christchurch. A shipment of 156 ears ordered by New Zealand dealers as part of the 1946 quota arrived nine days after the deadline allowed by the Import Control' Department, said 'Mr. Sniith, and witliout considering shipping problems and other circumstances which make it difficult to export cars from the United States to schedule the officials deducted the 156 models from the dealers' quota for 1947. ' ' I think this is very unjust, ' ' Mr. Sniith continued. "It does not worry my corporation, but it is a terrible blow to the dealers. who have had a leau time during the war when their businesses depended mainly on repairs. Similar teclmicalities eropped up in other eountries but they were waived by more sympathetic officials. Th dealers are continuing to protes against the curtailment of the 194i quota and the matter will be fully aired at a conference in Christchurch." Mr. Sniith said he would make personal representations to the Government in Wellington to have the quota restored. Hopes for an earlv reduction in th priee of new motor cars were dashed by Mr. Sniith. Because of the cost -of labour And shortage of materials all manufacturers in the United States had lost huge sums of money. In tho case of his own corporation, which had not shown an operating profit until the flrst quarter of this year, the delicii amounted to' about £9,000,000. A month ago the corportion agreed to pay itworkmen, who to'tal about 12,000, an extra 12 cents an hour arid this wouhl add aimost £25 to the cost of each- car at the present ratc of production- — a figure t.hat would be about trebled when the vehicle was sold in New Zealand. The automobile business in the' United States ^lcpended for linancial success entirely on the volume of production which had been liindered since the war by lack of materials. His corporation 's plant at South Bend, Indiana, was geared to make 1200 to 1500 units daily, but at present only 800 were coining olf the production line. Steel, copper and tin were in short supply, but he expected the first-named iteui to be more plentiful now tliat the steel workers had signed an agreement not to strike for two years.