U.S. SALES; U.K. MAKERS' ERRORS

Press, Volume CVI, Issue 31154, 2 September 1966, Page 9

U.S. SALES; U.K. MAKERS' ERRORS

TF British car manufacturers i are to gain a bigger share ; of the United States market;: they must improve spares and delivery services and build a more extensive dealer network, writes Adam Raphael in the “Guardian." Manchester.' I.ast year Volkswagen sold five times as many cars in! the United States as all the British exporters combined, and while Volkeswagen sales rose by 14 per cent to 350,000 cars. British sales declined by 1.5 per cent.

Why have Volkswagen been able to crush all opposition in the United States in the' last 10 years? It is certainly not the product, Raphael writes, for the 1200-1300 “Beetle” is no longer outstanding in price, performance, or comfort when compared with such cars as the Morris 1100. the Hillman Imp and the Triumph 1300. Volkswagen's annual report gives one answer: “The favourable market conditions throughout the world had only a slight influence in the market in Britain owing to internal economic and monetary difficulties. In addition, strikes in several industries interrupted car production, causing a decrease of 6.7 per cent from the previous year.” A letter to the British

magazine, the “Motor,'’ from a Californian reader provides, another answer: “Why are' I VW’s getting the lion's share of American imports? To me it is no mystery. VW parts are obtainable in almost every 'hamlet in America in the few! hours it takes to call in the order and await the express shipment. “I am now the proud owner of a fine Austin Countryman (1961). The local dealer has been unable to get me hinges for the rear door although 1

have pestered him for eight months ... the rear opening is both unusable and vulnerable to pilferage, yet nothing can be done. “I am seriously considering Detroit Iron as my next car simply because of the impossibility of obtaining the necessary spares. Three neighbours in my block also own British products and echo my feeling. Loyalty to a product! wears thin when after-sales i service is poor. “I was forced to construct! a lower radiator hose from' the original using tubing, tape and rubber tyre patches in order to use the car. Complaints to the manufacturer have gone unanswered.” The Society of Motor Manufacturers and Traders admitted last year “it would not be right to adopt an aggressive sales policy in the United! States” until deliveries could | be guaranteed. These were!

still beset by delays caused: i by strikes (six million man- I hours lost in six months), < difficulties at the docks and i , problems in establishing a dealer network. 1 On a visit to Wolfsburg he 1 asked the man responsible for VW’s success in America, 1 Dr. Carl H"hn, about the J matter. Raphael writes. Dr. Hahn spoke of the tre-J mendous emphasis VW had i placed on establishing a ; strong and widespread dealer I network and on tight control i of dealers’ sales and repair ; ! methods, and the organ- 1