Imported Cars In U.S.

Press, Volume CVI, Issue 31088, 17 June 1966, Page 12

Imported Cars In U.S.

NEW YORK, CALES of foreign cars are soaring in the United States while the local product is losing ground, United Press International reports. Owners of Volkswagens, Renaults, Simcas, Volvos, M.G.B.S, Triumphs and others have many reasons for preferring them to American models, and they all add up to an expected 600,000-plus sales year for foreign car importers. If sales top 600,000, it will be 40,000 cars up on last year and the first time since 1959 that the mark has been reached. On the other hand sales of American cars have lagged so much that estimates of 1966 sales have been reduced by 300,000 to nine million.

Reasons for the foreign car preference vary and are often contradictory. Status, economy and discontent with the ever-increasing size, power and cost of American cars are among the most common given.

Price is a definite factor, with most imports several hundred dollars cheaper than American models. But it is not the whole story. Sales of expensive foreign sports cars and the luxurious Rolls-Royce and Mercedes Benz are also soaring. The mobility of the small foreign car is an obvious asset, yet many Americans say they like the extra room of an American car. The foreign cars are more economical on petrol, but experts doubt if running costs are still of prime importance to the customer. This leaves intangibles—chic styling, the notion that it is smart to drive

an imported car, or a genuine mechanical interest in the different engineering and chassis construction. But nobody knows which reasons are most important. The big American companies are unlikely to try and beat their foreign competitors at their own game. Henry Ford II has warned the domestic industry to beware of competing with the small foreign cars. It would probably only lead to big losses, he said.

ROLLS-ROYCE is to sell and service Allison aircraft gas turbine engines in five major areas of the world. It will also make engines under licence.