Prices of cars steadying

Press, 28 December 1988, Page 6

Prices of cars steadying

PA Wellington Car buyers cannot look forward to cheaper vehicles in spite of continued recession in the motor vehicle industry, says Ford’s sales director, Mr Reyn Penny.

Car manufacturers, faced with more imported vehicles, and changed regulations and duty levels, dropped prices throughout 1988, but Mr Penny and spokesmen for other vehicle makers said prices had gone as far down as they could. New car registrations in 1988 were about 10 per cent down on 1987, to the lowest level in nine years, though there were signs that the market was improving.

Mitsubishi Motors’ public relations manager, Mr Rob Greenfield, said total sales for the 11 months to November were 65,870, 10.2 per cent down on the same period a year ago, and appeared to be heading for around 70,000 new

vehicle sales this year, compared with 77,499 in 1987.

Ford would remain top seller, followed by Toyota, Mitsubishi and General Motors, Mr Greenfield said.

Mr Penny said vehicle makers contended in 1988 with new regulations and tax laws, and thousands of used cars imported from Japan. “The sudden duty change announcements early this year forced the industry to carry a financial burden it could not afford to. carry,” he said. "To have attempted to hold off price reductions until the lower duty rates were formally introduced would have brought the industry at a manufacturing and retail level to a stop.”

He said motorists should not look forward to further significant price reductions as there were now no customs duties on locally assembled cars.