EXPORTS NOT EVERYTHING

Press, Volume CIX, Issue 32031, 4 July 1969, Page 9

EXPORTS NOT EVERYTHING

EXPORTS of Rootes Motors • cars are up 56 per cent so far this year—the highest they have been—but exports do not compensate for the loss of assembly line work ’ caused by falling sales in . Britain, the company’s managing director (Mr G. Hunt) . says. Of the cars exported, 60 ' per cent go in completely . knocked-down form, and con- . sequently do not require ■ assembly-line facilities in [ Britain, Mr Hunt says.

“Because of the low profit margins, exports, by themselves, cannot bring in the

profits a manufacturer needs as a reasonable return on capital; profits which are essential to provide for investment in new facilities and products.”

All British manufacturers have reported low domestic sales so far this year. Increased taxation, combined with higher petrol and registration costs, tighter credit and the numerous strikes in the motor industry are said to be the causes.

The motor industry must have a basis of home sales if it is to remain competitive in overseas markets, Mr Hunt says.

So far this year, Rootes Motors has exported more than 54 per cent of its total production, compared with 28 per cent last year. The company attributes the improvement to the reorganisation of its export marketing network, and to integration with Chrysler overseas business. The company has recently

received several bulk export orders, including 400 cars for Pakistan, 1750 cars tor Finland, and trucks and 425 cars for the Sudan. The Hillman Hunter is doing particularly well, and the Hunter’s win in the London to Sydney marathon rally has made a major contribution to Its popularity with overseas buyers, the company says.