10 PER CENT. DEARER

Dominion, Volume 26, Issue 290, 2 September 1933, Page 9

10 PER CENT. DEARER

Price Rise Forecast for British Motor-cars RAW MATERIALS DEARER Dominion Special Service. Auckland, September 1. An increase of about JO or 15 per cent, in the local prices of 1934 models of British motor-cars is anticipated by the majority of agents in Auckland, following rises in Home prices, which are expected to be announced next week. Higher values ruling in England for raw materials, particularly steel, glass, wool, and hides, are expected to be reflected ■ in : the 1934 prices, which will be revealed when the British manufacturers announce their new models during the coming week upder an arrangement among themselves. An increase in the prices of motor-cars is inevitable, as no manufacturer would use raw materials of poorer quality to keep down the cost of his products. A leading agent said his firm was expecting advice of the exact amount of the increase within the next few days,, and it was generally expected that prices would rise by 10 of 15 per cent. Practically every raw material used in the making of cars had become dearer. The rising prices, however, indicated beter times, provided the'producers of raw materials were benefitagent for a popular light British car said he had been informed by cablegram that the English price of his firm’s smallest car would be £5 higher for 1934, and that at present this would mean an increase of about £lO in the local price. Larger models would be correspondingly dearer; He did not anticipate, however, that higher prices would result in an appreciable decrease in sales, as improvements on current types would be incorporated in the new models. V