How Ford boosted Sierra

Press, 6 May 1983, Page 22

How Ford boosted Sierra

Although no evidence has been uncovered in New Zealand that would suggest that new-car registrations do not equate with new-car sales, in Britain and Australia motor-industry observers are beginning to have grave doubts.

It appears that British car-licensing offices had to cope with block applications for the registration of any number between 100 and 500 Fords towards the end of March.

A British motor-registra-tion official was quoted as saying that it was normal to get a rush at the end of a month to register cars for the beginning of the next month, but it was highly unusual to receive a lot of applications at the end of a month for registration to take effect from the beginning of that month.

In such cases applicants pay £9 towards the annual registration fee for a month when the registered car is not in use.

In March, Ford took nearly 32 per cent of the British car market and figures released by the Society of Motor Manufacturers and Traders show that Sierra sales accounted

for 22,300 of the registrations, putting the Cortina replacement firmly at the top of the March list. Stories circulating in the British motor industry suggest that Ford spent more than £5 million in March to

boost Sierra sales. Dealers were said to have been given up to £5OO for each of 10 Sierras they registered as demonstrators.

Allegations have been made that similar tactics were adopted in Australia last year when General Motors-Holden and Ford Australia were vying for leadership in the 1982 sales race.

In New Zealand, where monthly registrations amount to a fraction of those in Britain and relatively few compared with Australia, local assembly plants could upset the registration pattern quite dramatically if they had a mind to do so. Moreover, as the number of registrations determining the top 10 pecking order is usually fairly marginal, they would be able to influence the monthly sales chart without spending vast sums of money.