PRODUCE & MARKET REPORTS FROM DAY TO DAY

Evening Post, Volume CVII, Issue 74, 1 April 1929, Page 12

PRODUCE & MARKET REPORTS FROM DAY TO DAY

WORLD'S MOTOR TRADE

VAST OUTPUT

<MERICA EASILY FIRST

'•livening Post," Ist April. Some impressive.'figures-relative to the ■world's motor vehicle output have been compiled by Imperial Chemical Industries, and ■ appear in the company s bulletin. The United States leads with lungiics to spare, but Great Mtum is second, trance third, and Canada fourth in the- figures quoted, those for 1027. T}ic manufactures of vehicles in 1927 in numbers wore as follow: — ■United States 3,304,000 United Kingdom 235,000 Prance 100.000 Canada 179,000 Germany 115,000 Italy 55,000 Other Countries 30.000 4,295,000 One reason (or tho enormous.output of cars in the United States is its immense home market. "As a result," states the bulletin, "the motor industry dominates the economic life of the country; it has been calculated that every seventh family derives its livelihood from the motor trade either directly or indirectly. Some halfdozen firms control the industry, whereas in 1025 the United States produced S7 petcent, of the total world output'of motorcars, in 1926 the percentage was only 85, and in 1927, 81. . This is accounted for to a lavge extent by the fact that in the home market saturation point has been reached; consequently, the possibilities of foreign markets are becoming a problem of vital importance to the U.S. industry. As a matter of fact, motor-car exports show a gradual increase; in 1924 the exports totalled 5.1 per cent, of the country s output; in 1925 they had risen to 7.5 per cent., and in 1927 to 12.9 per cent. It is of interest to note that in 1927 Australia was the principal foreign market for American exports; of the total exports from the United States no less than 15 per cent, went to Australia. Tho Argentine followed with 13.5 per cent., Canada with 8.8 per cent., Denmark and Brazil with 7 per ceut. each, and British South Africa with about 6 per cent. In view of the development o£ the industry in other countries, it seems likely that the United States products will meet with no small competition in foreign markets. BRITISH EXPANDING.

The motor vehicle industry in the United Kingdom has likewise been expanding; the percentage of the output of the United Kingdom to the world's total output rose from 3.6 in 1925 to 5.5 in 1027. The annual production of the eight principal firms has been estimated at 120,000. In addition to the larger firms, there are some 36 smaller motor-car factories. Under the influence of recent Budgets, output jn the 1 United Kingdom has specialised in the lighter cars. So far there has been comparatively little export to the Continent. Th<f following figures, abstracted from_ the official trade returns, will give some •indication of the foreign trade in motor-cars: IP2O 1027. £ £ . Imports of foreign motore.™ (less re-ex- .^ Er^ £BVitiSU. mo' 0,065,000 7,320.000 Excess of exports .... 1,645,000 193,000 In 1925 the value o£ imports of foreign cars was £0,724,000 (less re-exports), and the exports of British cars was £7,234,000, showing an excess ot imports of ±~',4'JO,UUU. AMERICA IN CANADA. There are 11 great factories in Canada, all \>f them branches of concerns in the' United States, and they lay themselves out for the most part for export trade/principally to- British possessions, where, as Canadian products, their cars are given tariff preference. In 1920, 4o per cent, of the total Canadian output was exported;.'in" 1026, 36 per cent.; and in 1927, 41 per cent. ' In 1925 France shared with the united Kingdom the second position for-percent-age of world output, but the United Kingdom has overtaken it in the race, and in 1927 France occupied third place. . "he industry is in the hands of 115 l fn-ms, which produce three times as many types of cars as do the United States..Nevertheless, three' firms account for. the' major portion of.the output—to .the extent of some 7S percent. Inflation of currency had evil consequences for the motor-oar industry in Germany, but since 1924 the industry has reorganised itself and is now on a firmly established basis, due largely to the process of merging, which is not yet completed, and also to improvements in manufacture. One result of this has ■ been a reduction of types; at the end of 1924 there were 88 firms and 146 motor-car models; at the end of 1926 there were only 30 firms with 42 models; while at the end of 1927 there were 19 firms and 40 models.