THE MOTOR MARKET

Evening Post, Volume CVIII, Issue 132, 30 November 1929, Page 28

THE MOTOR MARKET

POSITION IN THE DOMINION

Jvow Zealand, due to obvious circumstances, has become Americanis- ??'... states the auual report of the Bntish (U.K.) Manufacturers' Association of New Zealand. "Statistics loon l Ye mouths UP to 30th April, 1929 show the total new cars sold 18,88 d Of these 2609 were British, /a Continental, and 15,818 American! i*rom these figures, it is quite obvious that the American sales and servicing organisations are much better established than British. The amount of business that American firms have done xn JNew. Zealand justifies more extensive selling and service organisations than the smaller British turnover warrants.

Having become established, it is so much more worth while for the Americans to concentrate on this market and conserve .their existing interests, as well as to expand. At the same time, it is clear that the American organisations have tackled this market in a way which is much more progressive and intensive than has been attempted by any English firm. The British manufacturers seem content to take any business that is offered them by their New Zealand distributors, without granting to such distributors the same assistance- in marketing as American manufacturers grant their distributors. The consequence is that American cars are better advertised, more intensively marketed, and better serviced. ■

As you are aware, the cost of producing cars in America is very much lower than the cost of producing similar cars in England. This fact has in-

duced the English manufacturer to endeavour to have his car sold in New Zealand at as low a price as possible with the result that English cars, generaly speaking, do not carry the same margin of profit as the American. On account of the bigger profit, Now Zealand agents prefer to push American cars instead of English.

"The duty levied on English cars complete with bodies is 20 per ceut. ad. val.; the duty on foreign cars is 50 per cent. ad. val. On the face of it, it would seem as if British cars had a preference of 30 per cent. The actual preference is largely nullified by the duty being paid on a much lower home consumption value on American cars and the freight rates being decidedly in their favour. The American freight rate is 48s per ton of 40 cubic feet, as against the English 70s per ton. Theae items largely nullify the apparent advantage in duty.

"From a mechauical point of view, English cars will not be a success on this market, generally speaking, unless they have more powerful engines and lower back axle ratios than are used in England. A few English manufacturers have recognised this condition, and have supplied special cars to this market, which are now meeting with approval.

The New Zealander is prepared to pay a reasonable amount more for an English car than an American; but the performance of the car-must be equal to the American as far as top gear work is concerned. The slower vibration in spring action is also a necessity. Americans realise that cars today are largely sold on appearance, and the bodywork that is now coming from America leaves nothing to be desired m this respect. Even on the cheaper cars, the bodywork is very attractive and gains many buyers. ' \ "This market is not an easy market to get into, and each year is making it harder, because now there"is only room for a complete organisation, with money and business ability behind it. "The English small cars are selling well, and there is a market for this type of car, but the price must be low and the quality and performance undoubted."