INCREASE IN CAR PRICES.

Shannon News, 7 September 1926, Page 2

INCREASE IN CAR PRICES.

BOMBSHELL TO MOTOR TRADE. ) ADVERSE CRITICISM. , Auckland, September 3. "The amended tariff is a bombshell to the motor trade and ear prices must increase," said an Auckland dealer who holds the agency for two American cars. "If the increases are expected to stimulate the, 'New Zealand body building industry, the Government i* taking the wrong line, because many people want expensive cars and the New Zealand industry can fill only a small part of the demand." ."As far as helping English cars along is concerned, that is another wrong move, because there are few English cars suitable for colonial conditions. If British manufacturers had made a special to supply cars for the colonies it would be a different matter. The British manufacturer is not yet prepared to offer every class of car required in New Zealand and it is unreasonable to heap on the costs to American cars when no alternative choice is available tp the motorist. American organisation is too good to be defeated by this move and, unless England wakes up, the United States manufacturers will get over the problem by building bodies in New Zealand. "Already one American car is being mass assembled at Petonc and there is no doubt the larger companies will find it profitable to operate plants in New Zealand and keep prices down. This organisation may take a year or two, but the demand for American caTs cannot, be extinguished." Referring to the Hob tt ' Downio Stewart's remark that the failure of the time-payment systems was causing much concern, the Auckland dealer said his experience was to the contrary. During 19 years' association with the motor trade he had come to the conclusion that the sales would fall by nearly 75 per cent, if cash deals were insisted Upon. Probably less than one per cent. of the time-payment sales were failures.