Dealers’ Views On More Car Imports

Press, Volume C, Issue 29536, 10 June 1961, Page 12

Dealers’ Views On More Car Imports

The announcement by the Minister of Customs (Mr Marshall) that about 3600 more cars should be available in the next 12 months gave an unreal impression, because this information had been available to members of the motor trade for some time and allocations for the remainder of thtis year had been based on the anticipated increase, said the president of the Christchurch b-anch of the Retail Motor Trade Association (Mr A. R. Mackay) yesterday. Mr Mackay said that if 3000 new cars became available in addition to the ordinary allocation, it would still only mean one additional car a month for the average dealer. “The retail motor trade wants to see many more new cars coming into the country. There is often public criticism of the new car franchise holders because, in most rases, they i--ist on a tradein by the purchaser. Why blame rhe dealer for this?” asked Mr Mackav. "It is a direct result of the shortage of new cars." Dealers had high overhead costs and were sometimes dependent on trade-inc to remain in business. "If franchise holders allocated more new cars, the necessity to deal in used ears would not be so important. To a new-car dealer, second-hand ear dealing is a nuisance and causes a great deal of headaches. but the dealer is placed in the position where he can do nothing but tradein them,” said Mr Mackay. “Could Be Reduced" The number of cars which could be imported into New Zealand was dependent upon the amount of overseas exchange made ava ; lable "Obviously, three small cars can be imported for the same amount of overseas funds as one large model. The figure of 3600 mentioned by the Minister could be very much reduced." The retail motor trade had been distressed for some time over the number of new cars coming into the country because the whole of the trade was dependent upon this supply, said Mr Mackay “Thousands of motor traders throughout the country are dependent upon cars for their livelihood. The records of branches, councils, and general conferences of the Retail Motor Trade Association bear ample testimony to the fact that the trade has made many representations to various governments for an increased allocation of overseas funds. We do not seek an unfair increased allocation, but a proportionate allocation of our overseas income. Today the proportion allocated is far less than it was a few years ago. “Die latest announcement says that more cars will be available as a result of a greater New Zealand-made content. This is probably quite correct in one sense but this is nothing new and has been known and planned for by the trade for some time. We therefore cannot

make increased deliveries for the remainder of this year other than those already promised to our customers." said Mr Mackay. “We would be absolutely delighted if we could say to a customer that he could have a new car without a tradein whenever he wanted it. but it is just impossible with the number of new cars we are receiving.”. R.S.A. Criticism Commenting on a Press Association message from Timaru that the South Canterbury Returned Services' Association wanted some of the new cars allocated to returned servicemen with a high degree of disablement, Mr Mackay asked whey the retail motor trade should be singled out for criticism. "Why not ask business firms to give new suits to disabled service-men at half price?” he said. "Or if a special allocation of new cars is to be made to disabled servicemen. will the Government rebate some of the money they take in sales tax?” Many persons said car dealers were making tremendous profits. “On a new car we do not get more than 10 per cent, of the purchase price, and when you consider the outlay in property, equipment, servicing facilities and the rest, can you call that profiteering? All new cars are under price tribunal control, but with the current Shortage, I am quite certain we could sell new cars £2OO above their new price.” Farm Machinery It seemed that several sections of the community were choosing the present time to attack dealers, said Mr Mackay. Referring to a reported discussion at a meeting of the agricultural produce section of Federated Farmers art Masterton, where the high cost of agricultural machinery and spare parts was criticised, Mr Mackay said that most of the firms handling farm machinery were in the motor trade. “What proportion of profit is retained by the Dominion distributors of this machinery is outside my knowledge, but the prices of tractors, implements and spare parts are under price control. The Dominion distributors keep a close watch on territorial dealers, and the margin of profit is certainly no higher, and in many cases is much less, than many other retail goods. If there is any excessive charge for machinery and implements, it is certainly not by territorial dealers.” Mr Mackay said the difference in price between a British tractor ex-works and the New Zealand purchase price was only about £240 in the case of a well-known make. "You have to remember that freight and packaging, as well as assembly costs, have to come out of that.” He knew of one instance where the freight costs on a tractor shipped from Welling, ton to Kaiapoi were more than £lOO. $