New cars up $1200?

Press, 22 October 1980, Page 1

New cars up $1200?

PA Wellington A substantial rise in prices of new cars has been predicted by a motor industry executive. Mr D. C. McDonald, president of the Motor-Ve-hicle Manufacturers’ Association, has warned that prices might rise as much as 18 per cent in the coming year. He blamed a hardening of overseas currencies, mainly the Japanese yen,

for the likely price increases. Increases of the magnitude suggested by Mr McDonald mean that the price of an average family saloon is likely to rise more than $l2OO in the next year. Small hatchbacks, one of the most popular types of small car, might well cost more than $9OOO. Mr McDonald said that some new-car prices had .

started to rise in recent weeks. While the yen continued to increase in value against the New Zealand dollar, price rises would continue. ■■" / The motor industry had to be concerned about the impact such price rises would have on the r marketplace, Mr McDonald said. Frequent price rises tended to create buyer resistance.