CAR MANUFACTURE

Dominion, Volume 33, Issue 87, 6 January 1940, Page 14

CAR MANUFACTURE

Plans In Australia Further details of the proposed £1,000.000 company to be launched by Australian Consolidated Industries, Limited, to manufacture iliotor" vehicle engines and chassis in Australia, indicate that the car the company will manufacture, will be of a popular American type of between 18 and 25 horsepower. The Minister of Trade and Customs in his announcement said that the Commonwealth Government had agreed to safeguard the company, against competition from foreign or foreign-con trolled companies which might desire to manufacture motor-cars in Australia. The site of the factory has not been revealed, but several near Sydney are under con--sideration. The Minister said the Government would not authorize capital issues for the motor-car manufacturing industry other than to the proposed company. The Government would do its best to limit the production of motor-cars and trucks to the proposed company for five years. The Government had also undertaken that, if the vehicles proved satisfactory in quality and price, it would -buy a sub stantial proportion of its defence requirements from the company. The Minister said the company would have an initially subscribed capital of £250,000. It would give support to existing parts manufacturers in obtaining supplies of chassis parts for the new car. To purchase the plant for building the engines and assembling the complete vehicles, Mr. W. J. Smith, managingdirector of Australian Consolidated Industries. Limited, will leave for the United States early. Mr, Smith will be managing-director of the new company.