COMMERCIAL “Motor industry aims at economy"

Press, Volume CXIII, Issue 33189, 31 March 1973, Page 13

COMMERCIAL “Motor industry aims at economy"

The motor industry aimed at standardisation and volume, the chairman of the New Zealand Motor Corporation (Sir Walter Norwood) told shareholders at the annual meeting.

Sir Walter Norwood was commenting on a matter that he said was causing increasing concern—the attention the Government intends to give the motor industry. Motor-car assemblers, the Government said, concentrate on longer runs in fewer ■models, with the aim of . achieving maximum econoimies, which must be passed Son to buyers. Sir Walter Norwood said that manufacturers had no ; objection to the Government’s aims to increase local content, but he emphasised that quality, costs, and availability were key factors. The price disparity between local and overseas manufactured components was a point at issue, and it was for the Government to decide what the acceptable differential will be. Sir Walter Norwood said, however, that increased local content would mean higher-priced vehicles, unless the greater content was balanced by concessions in customs tariff or reduction in sales tax.” The most notable event during the year was the acquisition and assets of British Leyland in New Zealand, the chairman said. Financing expenses asso- ■ ciated with the purchase j would be high, and remain a : charge—though a diminishing

one—against the corporations earnings for a few years yet.

Costs, many of which could not.be recovered in a controlled profit situation, had been a major problem last year, particularly so in the dull trading encountered in early months. Commenting on the new model range. Sir Walter Norwood said that the corporation was only now beginning to see the fruits of the merger in the United Kingdom between Leyland and British Motor Corporation.