GENERAL MOTORS, LIMITED.

Press, Volume LXVI, Issue 19917, 2 May 1930, Page 16

GENERAL MOTORS, LIMITED.

A RUMOUR DENIED. REPL.Y TO MANUFACTURERS/ Mr' \V. McHardy Forman, • managing, director of General Motors (NvZ.J/Ltd., who is in Christchurch', was a asked lapt night whether there was any foundation for the rumour, that his firm was giving up the business of asaombliiig cars in New Zealand. He replied: "Far i'rom it; we are here to stay. Instead of going out we are, getting bigger all the time. Even now we aro calling j tenders . for. additions, .costing about] £BOOO to our works at Petone; that does "not'look like going out, does iff"Importation of Cars. Mr Forman- went on to argue that the industry in which his firm was interested was essentially-a New Zealand one. - The suggestion, made ; at the Canterbury Manufacturers' Association ■'.. meeting/ that the importation of cars to New Zealand should be prohibited.for a year was quoted to him. "That would unemployment more than anyone not connected with the motor industry would imagine," he replied. "So many would be put out of work that . the percentage of the Dominion's unemployed would rise higher than England's. Is that what the manufacturers want? "Besides, we do not import ears. We import the parts and assemble them here, and . each year sees a greater proportion of New Zealand labour and New. Zealand materials being used." At Petone, where we have. recently installed' a motor-body building plant, we have 540 employees, while there are hundreds more in New Zealand dependent upon us. Use of New Zealand Materials. "Lately, following on severe tests, upholstery woven in New Zealand mills from New Zealand wool was chosen for use in closed cars. We find that for durability, as well as for appearance, this fabric is vastly superior to the average imported upholstery largely made from cotton. A New Zealand firm is now supplying us with chromiumplated bumpers and luggage-carriers which are superior to, the ones formerly imported from Australia. Thousands of feet of native timber I—mainly 1 —mainly Southland beech—are being used annually in our cars. If New Zealand products ean be used with advantage in' such • product as the car, there is no- reason why they should not supplant the imported material. "New Zealand has important secondary * industries the development of which' depends -almost entirely on the extent to which New Zealanders support Nor' do NeW Zealand goods rely on sentiment to sell them. Their quality does that. Even what -we have done has meant a great deal to. the woollen and upholstery business'in New Zealand, and we believe we are givisjp si lead to the motor industry in New Zealand In the use of New Zealand materials." „. ftica Of Oars Hay Bise. Speaking of the motor industry generally, Mr Forman held'that.business was as good as ever. 'He would say,-how-ever, that the-prices of cars were-likely to increase, for it - seemed that they '■would haSa. to» pay "more.-for-their raw materials.' His firm was'not adding, any new ears-to their list for the'present. . - The reporter enquired if ' General Motors were likely to enter the aeroplane industry in New Zealand. "I think that is" a long way off," he replied. ' "Overseas we are interested in the FoJrker'maehine, and you may bo sure that if there should be any scope we will ,hot be behind, but I consider that,it will be some'time-before' we begin assembling aeroplanes in 'Netv Zealand'as we are motor-cars."-rAtVATWm OF; GOODWILL ; • ',———- : Goodwill figures appear-in the balancesheets of several Australian companies. In most instances the.-companies. are net in a very large way of "business, but there are ' Difference of. opinion prevail* botlTliere' and? in overseas countries as to the method''by - ,hich v this sometimes vague and illusive.'item/should .be .valued (States the Melbourne' "Age"),, and, the question ras.been engaging' renewed attention In England. In an address at Birmingham on commercial goodwill, Mr P. D.\ Leake directed the-minds-of chartered accountant students to the danger of the common - practice -of treating the coat of purchased' goodwill as a fixed | , and permanent'asset.* The purchase'of goodwill,, he saidj was the.purchase of nothing except the right to receive ex-. peeted future super profit. Owing to constantly altering conditions, competiion, changing fashions, and' so on, super ' profit could, never be.permanent, ~ But an even more fatal objection to the Claim that purchased goodwill' was a permanent asset was the undeniable fact that future annual, instalments of money ' falling dtkey ntor* than' twenty years' . hence had very little present value, / j -when discounted, at 10 per per • annum. interest~*-the' lowest rate generally needed ,to< coyer-ordinary invest- ' ment and this specla' and peculiar risk. Such remote and minor values were in-, . deed, generally besti altogether, disregarded _in computing the present value >of~cbnt"mercial goodwill, attaching to trading and industrial 'concerns. For these reasons the-term of twenty years, r must he, 'regarded, avqn in favourable circumstances,' as being ordinarily the approximate time limit, within which futn'rea'nn'ual' 1 instalments of super profit could.have>any very substantial imEortance in considering either' the origxal exchangeable .value, or the unex- '-" pired' aocounting> value, of purchased .goodwill as.a-trade asset. There are - ( companies Jin .the Commonwealth which . ' wonld find.it to their, ultimate advantage if' ftey' paid, heed to Mr Leake's Yiewfi. • ■ CHAMBER pF COMMERCE. .. MONTHLY MEETING. A, meeting'of the council.of the Canterbury, Chamber of Commerce -was held last night, when' Mr Norton Francis (president) occupied the chair. ' The following firms were elected memhoM oft the Chamber;—rW. and T. ' Avery Ltd. (Mr E. H. Btlckridg«o, the Perpetual Trustees' Estate AjO<r!Agejßcy f Co. of N,Z,, Ltd. (Mr BoberV ljJric Fw»), and W.'S. Nawburgh nndJCo. <Mr W..& Nevburgh). Tbe' transfer of MV J. N, Greenland as the 'T r rrTon Stfialtt Ship Co.'s representative inl'the place of'Mr WH. Price, who lins been transferred, was approved. The monthly statement of receipts and expenditure showed that there was a cwdit.balance on April 30th of £9 Cs'3d» , , .