Subaru told Govt will do ‘utmost’

Press, 23 July 1986, Page 38

Subaru told Govt will do ‘utmost’

By

SIMON LOUISSON

in Auckland The Government will do its utmost to solicit foreign investment to the maximum, the Prime Minister, Mr Lange, said in Auckland. Mr Lange was speaking at the opening of Subaru New Zealand, Ltd, headquarters in Auckland, one of only two wholly owned New Zealand car assemblers. Subaru is a subsidiary of Motor Holdings, Ltd, which in turn is 70 per cent owned by the Spencer family interests. Motor Holdings chairman, Mr Lloyd Brown, said that Subaru was working in a manner consistent with Government policy — to strengthen the economy and to attract foreign investment. Mr Lange said that the uncertainties which had afflicted the motor industry prior to the IDC plan announcement in late 1984, were now behind it. He said the plan gave the Industry the chance to

make critical investment decisions, and the industry knew that competition was needed for the pursuit of excellence. “It is not that we have abandoned the idea that New Zealand industry should flourish. It must flourish, like the employment it brings with it It is simply that we seek to pursue those objectives not by defeating the interests of the consumer, but by promoting them,” said Mr Lange.He said that while there were many issues in the industry still to be resolved, the Government had no intention of resolving them. If the industry did not have the resolve to provide solutions, the Government had no interest in solving things for them. The opening of its new headquarters was part of Subaru’s restructing moves begun in April, when Subaru New Zealand was established, and part of an over-all strategy to lift its profile in New Zealand. Subaru currently had about 3.5 per cent of the national market share, but

it was attempting to lift this and latest sales figures suggested it was succeeding. In Christchurch it had captured about 6.5 per cent of the market because of the popularity of its 4-wheel drive range among the ski-set Subaru had reorganised as a result of the IDC plan and had now centralised its manufacturing at Waitara, at a cost of more than $2 million. The new headquarters at Subaru House will house sales staff with computerised distribution facilities. Subaru will use its sponsorship of New Zealand’s America’s Cup challenge to help raise its profile. This week the company will launch a limited edition range called the “Challenge KZ 4WD Wagon.” Mr Brown said it was not Subaru’s ambition to become the biggest — it was realistic enough to realise it could not achieve that — but it did intend to become the best through the manufacture of the best quality vehicles.