Britain’s Record Boom In Car Industry

Press, Volume XCVII, Issue 28728, 28 October 1958, Page 11

Britain’s Record Boom In Car Industry

(Rec. 8 p.m.) LONDON, October 27. Britain’s booming motor industry is having the biggest year ever known. By ' the end of December many more than 1,000,000 private cars will have been produced, more than half of them for export. The present rate of production has broken all records and is more than twice the rate for 1952 or any earlier year. The industry has just made sales history with 782,996 cars disposed of in the nine months ending September, an increase of 176.389 on a similar period last year. Of these 374,499 were exported. These are just a few of the encouraging facts that have made British car manufacturers deservedly proud of the industry’s efforts as they see the latest examples of the fruit of their labours at the Earl’s Court Motor Show. The motor industry has expanded rapidly at a time when the output of many other major industries has been static or in a decline. Its expansion has been one reason why Britain’s economy has shown until recently So little sign of recession during 1958. The industry’s exports this year are likely to exceed the- £5OO million mark, roughly £lO million a week. The total of its post-war exports will reach more than £3250 million. At the moment the motor trade accounts for about 15 per cent, of the nation’s business—including a valuable dollar contribution—and the proportion is rising. What is more, an expansion programme costing about £ 150 million is now almost complete and the effect of this modernisation is beginning to pay dividends in the form of greatly improved production. British manufacturers, too, are showing greater aggressiveness in salesmanship on which depends success in the United States and Continental markets and their designers, some of whom have been recruited from Italy. France, and

Switzerland, are seeing that more attention is paid to the vagaries of American and other foreign tastes. The prevailing mood of the industry is one of confidence. It is Britain’s great success in the small car market in America which has put her on the way again to becoming the world’s largest exporter of motor vehicles. In little more than a year the monthly average of cars shipped to the United States has nearly trebled. The British small car is selling there because there is no American vehicle to compete with it — but it is a situation which Detroit is already tackling and British leadership might not be so prominent this time next year. British car sales in America, in spite of the intense local output, have risen to four times the 1955 level and have almost caught up with the German. Up to the end of August this year 93,500 British cars- were shipped there —36,000 more than last year. Exports to Commonwealth countries have kept up remarkably well in spite of the balance of payments difficulties and import restrictions in New Zealand and Australia. But Britain’s share of Continental markets has dropped slightly. She is having to fight to counter a much stronger foothold being gained by French and Italian manufacturers Cautious Forecasts

British car makers, while happy ’ about the present state of the in- j dustry, are a little cautious about) forecasting the position a year! hence. The future, they say, may ' be somewhat tougher. Home de-j mand is likely to become more: seasonable and stronger competition can be expected in export; markets. A growing challenge to the British industry is underlined by i the appearance at the motor show of one of the largest representations of European cars since the war and the implementation on January 1 of the European Common Market will make the task of increasing the British share

of Continental trade even more difficult. Manufacturers, however, are hoping the Government will give them a helping hand by lowering the purchase tax on cars and abolishing it on commercial vehicles. They have already told the Chancellor of the Exchequer, Mr Heathcoat Amory, what they think the industry deserves, emphasising particularly a greater sense of urgency in roadbuilding and asking for some relief from hire purchase restrictions as well as taxation. They have also urged the Government to “recognise” that the motor vehicle is not only an essential, but is socially desirable, and that wider distribution of car ownership throughout the population can be a real move towards social advancement. It is not very likely any British Government will ever “recognise” such pleas. The most hopeful reaction so far has been from the Home Secretary. Mr Butler, who, when he opened the motor show, said he looked forward to one car for every two families in the next 10 years. There bare also been one or two faint glimmers of consolation in recent speeches by the Chancellor that he may at least “recognise” the industry’s great contribution to the national balance sheet and reward it with a concession of some kind. The total he collects in tax from all motor vehicle sources is around £520 million a year. The 60 per cent, purchase tax is the main reason, according to manufacturers, why Britain has fewer cars in proportion to her population than many other countries. (They think some kind of relief I would certainly hasten the day (towards which the Home Secretary is looking.

The Public’s Choice Public opinion places Baxters Lung Preserver first for coughs, colds sore throats, etc. As the i years have come and gone so I have other preparations. but ‘Baxters” has forged ahead. “Baxters” cuts the phlegm quickly. Sold m two sizes. Baxters, Ltd, j Chch. —Advt