Higher Wages Means Dearer Cars

Chronicle (Levin), 25 January 1949, Page 3

Higher Wages Means Dearer Cars

WELLINGTON, Jan. 24. Lord Nuffield, the British motor magnate, arrived in the Dominion Monarch on a 14-day visit to New Zealand. "I can't see any prospect of a fall in the price of British cars," he said. ' 1 While wages continue to 'rise so wili the .price of ears.1 • Most people do not > seem to reajise that the cost of whatthey buy i/ goverped by wages and raw materials costs."' Lord Nuffield said that if steel were . available the British inotor- ihdustry could push up production 100 per ceht. The nationalisation of steel, on the other hand, if it occurred, would probably httveJhe effect of decrcasing the outpu.t. rathef than stepping it up. ' . The Britfsh fuotor industfy had been able to . establish a strong position on the car market. in the United States •where the British smail cas had won great popularity. The value of this , aehievement, as part of Britain's general export drive, would be apparent. British output, too, was increasing in spite of the steel shortage.- New British cars were luucli more roomy bccause of streamlining and he was coniideht they would be well reeeived. As to the cxtent to which new English cars would appear in New Zealand, he said: "I don't see wliat' we can do about it. We've g ot to leave it to you people. New Zealand has always given us a good share of her business in the past." The British people themselves had little chance to own new cars as 75 per cent of production was required to be exported. Out of the remaining 25 per cent the Government, Poliee, Post and lelegraph and other services had to have priority, with ' the result that the publie got probably not as much as 10 per cent of the total output. Lord Nuffield was met by Sir Charles Norwood and other friends in the motor trade. He has no plans for travelling within New Zealand but expects to spend his tirne in Wellington. He wiri leave for Australia in 14 days' time and will later rejoin the Dominion Monarch for the homeward voyage.