A REMARKABLE RESULT

Sun (Auckland), Volume 1, Issue 46, 17 May 1927, Page 11

A REMARKABLE RESULT

COAL STRIKE AND MOTOR PROFITS The remarkable result of the English coal strike on the motor trade, or at least one venture in it, is recorded in the following paragraph from an English financial journal: “in view of the apparent activity in the motor industry it is advisable to remember that here, too, the coal stoppage made its mark. This is made clear in the latest report of Vauxhall Motors, which states that ‘orders fell off to such an extent that we lost the whole advantage gained by the reduction in price’ at the end of 1925. Hence the trading profit for the year shrunk from £91,000 in 1925 to the negligible figure of .£36. It should be noted, however, that opportunity has been taken to effect a complete rearrangement of the plant, so that the works are better equipped than ever to take advantage of reviving trade. “The ordinary shares of the company are owned by General Motors, so that the English investor is only interested in the preference dividend. This has been met, but only by appropriating the reserve fund and drawing heavily upon cash balances. Nevertheless, the outlook is encouraging. The report states that General Motors is providing additional capital to finance current factory expansions and this will mean additional earning capacity and so increase the security of preference shareholders. Debentures and preference shares together only absorb £42,000 per annum, and this sum should be easily realised in a normal year.”

MOTOR REGISTRATIONS

The number of motor vehicles registered in the Dominion up to the end of last month totalled 163,374. For the previous month the figures were 162,341. The April return is made up as follows: North Island.—Cars, 65,756; trucks, etc., 15,859; cycles, 19,346; total, 100.961. South Island.—Cars, 40,734; trucks, etc., 7,108; cycles, 14,571; total, 62,413. If the • car bucks at low speed take it to a service station immediately, have it overhauled and tuned up. Sometimes a loose valve tappet adjusting screw, a slight change in timing or carburettor adjustment may cause the bucking.