BRITAIN AND MOTORS

Evening Post, Volume CXI, Issue 19, 23 January 1926, Page 23

BRITAIN AND MOTORS

AMERICAN VISITOR OPTIMISTIC.

Speaking at a. luncheon given by the American Chamber of Commerce at the HoUil Cecil, London, Mr. J. D. Mooney, vice-president of the General Motors Corporation, Cetroit, which has linked up with the British Vauxhall Motors concern, expressed full confidence in the future of British industry, and particularly in the motor trade.

He thought it was obvious that during the next ten years the British Empire would move forward aggressively and rapidly in the development of its own economic coherence and strength. He went on to explain his reasons for replying "yes" to the question, "Is the investment of capital in the manufacturing business of England at the present time safe?

If one's nerves were a bit upset (he said), as reported by the "Manchester Guardian," and if one were to pay very much attention to some of the questions that are raised in the daily Press —like, for instance, "Is England Done?"—one might be inclined to feel that engaging in manufacturing here would be rather dangerous^ and, to say the least, a highly speculative venture. To quote an English slang word, which I have learned here during the past few months, I think this point of view is "Tosh." England has been passing through a series of grave, economic ills during the past few years, but the courage with which these have been confronted is the very best guarantee for the future.

Tlic British seem to have developed their plans for the future on the principle, of taking their punishment now, h good philosophy for life ;is ivell as for commercial and industrial progress. The strength of the British Empire is as great to-day as ever; in. fiicl, potentially it is greater. The world ivar revealed to the various element* of tUo ISmpirc a common -mliUi'v nwr^iLv. AftkU'e siuue Ike

war have proved a condition'of mutual economic necessity. These necessities really supply the substance to cement the stone for the arch of Empire; and to this the crystallising force of the sentimental attachments that exist among the various elements of the Empire and you have, finally, the remarkable and increasing strength that promises to resist any of the disintegrating forces of time. FOUR FACTORS. There are several economic factors that are entirely favourable to the ■manufacture ■of motor-tars in England. First, the raw materials are readily available. The industrial and production facilities that must provide the general background for producing' icars in quantities exist readily and within a comparatively limited area. Second, transport and communication are comparatively easy among the several elements that lie both inside the organisation directly responsible for producing the cars, and outside of this organisation for supplying materials, semi-manufactured articles, and supplies. Third, the mental approach to manufacturing a high-grade, complex pro-" duct like a motor-car is instantly available. There is a complete industrial tradition and background existing here, including all of the various elements of personnel, management, engineering, mechanical craftsmanship, to support a broad manufacturing programme. Fourth, and I think this is extremely important, England is faced with the economic necessity of capitaJising to better advantage, a thing that she can do exceedingly well— i.e., manufacture high-grade, complex, fine-quality products.

It seems to me that the nianufactirr ing of motor-cars fits in, at the present time, with one of England'^fundamental economic necessities.

HIGHER COST OF BAW MATERIALS.

It has been pointed out that the costs of available raw materials like coal, iron, pig iron, and semi-manu-factured steel products have been, gradually rising. It has been pointed out, further, that these rising costs are threatening England's competitive strength in the world's markets. It see;< j to me that the answer to this is to increase the amount of labour that is performed inherently on the industrial products of England that are exported. The labour, both in amount and character, that is needed for doing this is readily available. We can express this another way by saying that considerable advantage can be gained by shipping less products in raw state or semi-raw state.

Means must be provided to focus the flow of these raw products to points in England where they can undergo considerable transformation in the hands of British labour into more highly-finished products before they are shipped for export. Assistance can be provided in the attempt to solve some of the present economic problems by increasing, so to speak, the degree of fabrication on England's manufactures for export.

I can summarise the position of the General, Motors Corporation by stating that we find here the general elements that provide a sound basis for investment in the motor industry, high character values, the amount and character of labour needed, the funda- t mental production facilities, and an' expanding market. Mr. F. E. Powell, the president of the chamber, who was in the chair, said that in America the co-operation between employers and employed has accomplished three things—higher wages, an assured job, and the increased status 'of the worker. He had no doubt that if British industry wanted these results it could get them.