Vauxhall's loss much larger

Press, Volume CXV, Issue 33776, 24 February 1975, Page 18

Vauxhall's loss much larger

C.V Z P A Reuter— Copyright I

LONDON.

Vauxhall, the British subsidiary of; I General Motors, has reported a 1974 net loss* I almost five times as large as in 1973.

The firm had a net loss of; (£lB.om last year after an ioperating loss of £s.lm. A |net loss of £3.7m was incurred in 1973. after an' (operating profit of £l.Bm. I In 1974. Vauxhall soldi 1249,783 vehicles, 8938 fewer! (than in 1973. Turnover increased £4om to £320.8m. The company’s chairman Sand managing director (Mr iW. A. Price) said that the 'demand for cars in the United Kingdom was seriously affected by the higher fuel price, and inflation. The firm made a small operating profit in the second half of last year, when car and commercial-vehicle sales were up on the first half by about 13 per cent. Sales in the first half were low because of supply shortages caused by industrial disputes.

'| Mr Price said that ft* i depressing sales and proft’ .: re-emphasised a definite ■ need for a wider market 'base for Vauxhall. ' The company’* £s3m tn I vestment programme s&s 'designed to fill that need, lm said. “The economic situationjn 1975 calls for even mere stringent controls over ill costs and expenses to as Ast :in relieving the severe strains on liquidity impoftd by declining markets aid high inflation,” Mr Piece said* “Coupling this approach with strong programmes fcr the marketing of our Expanding range of produf ~ we are confident of our ability to continue the improvement already begun m ft* second half of 1974,” Jit said.