Buying More Cars From Japan Urged

Press, Volume CVI, Issue 31196, 21 October 1966, Page 3

Buying More Cars From Japan Urged

(New Zealand Press Association) AUCKLAND. October 20. New Zealand was denying itself the chance to help to overcome its car shortage by importing more Japanese cars, the managing-director of the Nissan Motor Company, Ltd., Mr M. Okuma, said in Auckland.

He said Japanese industry was competitive and, in spite of a 32.5 per cent import duty, was able to match prices of British cars in New Zealand. New Zealand had a favourable trade balance of £6 million with Japan, and it was unfair that New Zealand’s importing policy should not take more note of this. It was possible that the Japanese attitude to importing New Zealand produce could harden if the trade imbalance continued. New Zealand had a heavy trade deficit with Australia, yet continued to import many Australian-made cars. Taking more cars from Japan would help New Zealand correct the imbalance. Mr Okuma said it was scarcely economic for Japanese manufacturers to assemble cars in New Zealand when

each maker was limited to an annual output of 300 units. Japanese manufacturers could be interested in eventually manufacturing in New Zealand if the local steel industry could provide the materials, but a maker would need to build between 20,000 and 30,000 units a year to make this economical.