N.Z. ‘people’s car’ suggested

Press, 26 October 1984, Page 7

N.Z. ‘people’s car’ suggested

Special correspondent Auckland A “car for the people” which would bring the price of a new car closer to the average man’s pocket has been promoted by car-parts manufacturers. The Automotive Component Manufacturers’ Federation wants each of New Zealand’s car assemblers to produce a “volume” car for the average family man. The car would be one of the basic models already produced by the manufacturers and the volume relates to a commitment the manufacturer would make to produce that model in bigger numbers. The car makers would nominte their volume car and tax incentives would nominate their volume car and tax incentives would be

handed out depending on the number produced. The president of the federation, Mr Bob Sebelin, said that with less tax on the car and savings from longer production runs of the car and its components, the price of a new car would come closer to the average man’s pocket. The federation put the idea of a nominated volume vehicle to the Minister of Trade and Industry, Mr Caygill, during final submissions on the motor industry plan now being reviewed by the Government. They are trying to convince Mr Caygill that the future of their industry lies in greater volume and longer production runs. Mr Sebelin said the idea of the specialist New Zealand cars would not mean that the Government would effectively subsidise the

cheaper cars through less duty and sales tax. More cars would be sold so the tax take on new cars would not decrease and increased production would provide more jobs and staff to pay tax. The president of the Vehicle Manufacturers’ Association, Mr Denford Macdonald, said he had not heard of the idea and he would want to look at it in detail before commenting. “It all sounds very hypothetical,” he said, “I’m surprised it was released to the news media before our association. “We are, after all, the people who would have to build such a car.” Mr Macdonald said he attended the annual conference of the federation about three weeks ago and the idea was not mentioned then.