N.Z.M.C. sells branch in Dunedin

Press, Volume CXIV, Issue 33671, 22 October 1974, Page 22

N.Z.M.C. sells branch in Dunedin

(New Zealand Press Association) DUNEDIN. The Dunedin motor retail firm City Motor Service, Ltd, has agreed to buy the Dunedin assets of New Zealand Motor Corporation for an estimated $400,000; the proposed change-over date is November 1.

The announcement was made in Dunedin yesterday by Mr G. N. Thiele, retail manager for N.Z.M.C., who said it was hoped the situation would be finalised in the next few days. He explained that this was just part of the normal overall development programme for the corporation.

“In Dunedin, our branch and city motors have been competing with one another, and there has been a certain amount of duplication of resources. This has been wasteful to some degree,” he said. ; “As a- way to overcome i this. City Motor Services [offered to take over our branch activities, and we are negotiating to this end. A strong retail outlet, is in a position to provide better over-all service for our customers, so what we are doing is in the best interests of ail concerned.” What the corporation was looking for in each of its sales areas was one outlet which was strong financially, could give good service to its customers in attractive premises, and provide a good base for future development. Each case was judged on its own merits, and in the case of Dunedin, it had been decided to concentrate the Austin and Morris franchises in City Motors. “It will be a condition of the transfer of the Austin franchise that all staff at present employed in the N.Z.M.C. branch will be offered continued employment,” Mr Thiele said. Hanover assurances The directors of Hanover Holdings, Ltd said that no loss would be suffered by the company as a result of its financial interests in Landall Holdings, Ltd. The present book value of shares held in Landall totalled $962,640, and guarantees given in support of bank accommodation and secured by a right of subrogation over debenture stock held by the bank as primary security totalled $500,000.