New Zealand Motor Business

Sun (Auckland), Volume III, Issue 888, 4 February 1930, Page 6

New Zealand Motor Business

And British Car Influence PREDOMINANCE OF U.S. VEHICLES AMERICAN cars predominate in New Zealand, and for several years the New Zealand car market has followed closely that of the United States of America. The influence of the British car on the New Zealand business has been negligible for some considei'able time, but there are signs that a change is coming, says the “Radiator,” organ of the New Zealand motor trade.

The advent of the baby car, although a small factor, is still an important one and may have considerable influence on the other sections o£ the trade. In this particular field England now dominates the New Zealand trade, and although it is reported that U.S.A. is to meet this particular competition, it will be difficult to dislodge England from the position she has won under such great disadvantages. It is said that the British Government is interested in steps which are being taken to capture the export trade of cars to British and other territories, but no details of what is intended have so far been made public. There is little doubt that England can now supply cars suitable for the requirements of New Zealand, and the combined action of the manufacturers and the British Government can do a great deal to assist in marketing and servicing the cars.

The main difficulty, however, which must be met, is that of price, and until the English product can be sold at a price which is reasonably competitive, it will be difficult to make any great headway. America is producing more cars than she can absorb in the home market, and the export market is more necessary to the American manufacturers today than it ever was in the past. Apart from competition with England. America will strive to increase her export trade so that the huge plants which have been installed may be kept moving. There are signs that the zenith of motor production in U.S.A. has been reached, and there must be restriction in production. It is unlikely that this will be voluntary, but will become an economic necessity, under which the weaker organisations will likely succumb. While this is taking place, the competition in the export market may be expected to be keener than it has ever been, and New Zealand may be involved unless her motor importers act with great care and judgment. The coming year promises to be of great interest to motor traders, and there are signs that it may also be difficult. The volume of business will, we believe, be satisfactory, but complications arising from the situations in England and* America may raise difficulties for the New Zealander. The American trade Press is apparently divided as to the best policy to pursue, and while some advocate reduced prices to clear out stocks, others claim such a policy is suicidal, and favour a restriction of output, even at the expense of increased selling prices. Unless production is restricted within reasonable limits, it will be difficult to prevent a price-cutting war untit the position is cleared. We believe that ultimately American production will be reduced, and the motor manufacturing business will settle down on sound business lines. This will probably mean higher prices, but better value in the long run. When this position has been reached, England will compete on more equal terms, and the present attempt of British motor manufacturers may be more successful than is expected by many New Zealanders. A great deal has been said and written about the disadvtanges under which the British motor manufacturer struggles, but little has been made of the advantage he holds over his American competitor in British overseas markets.

New Zealanders at heart are staunchly British, and when all is said and done, have much more in common with England than with America.

Today the American car predominates, and many people believe it can never be ousted, but we believe that once the English car was reinstated in public favour, there would be an overwhelming preference for it, and in the course of time, which must be several years, it would again dominate the New Zealand market.

Railway level crossings are doomed in France. Plans have been suggested for the abolition of the 40,000 crossings in that country at an estimated cost of £20,000,000 over a period of ten years. Official instructions have been given that no more crossings are to be made. A telephone from the driver to his companian at the rear has been in-

cluded in the equipment of a 100-ton transport lorry designed in England. The plans provide for an 80-horse-power engine, which* will climb grades of one in ten.