HIGHER-POWERED

Gisborne Herald, Volume LXXII, Issue 21603, 4 January 1945, Page 4

HIGHER-POWERED

POSSIBLE ENGLISH CARS EFFECT OF TAXATION . - Higher-powered light cars for the New Zealand market are a likely effect of the change in the English method of motor taxation, according to motoring circles in Auckland. It was explained that the old method of taxation was based on cylinder diameter, the .cost rising as the number and size of the cylinders 'increased. The new system would permit the manufacturer to use a larger cylinder, giving greater power output.

English light cars had dominated the local market because of the high taxation, and manufacturers had resorted to high compressions and small high-speed engines to overcome the handicap of small cylinder capacity. Now it should be possible to produce cars with a better performance at the same taxation cost. The steep upgrade of taxation for cars of over 14 horse-power would have another effect in penalising the import of high-powered American models and should give a decided fillip to the English higher-priced market. It was agreed that the change should prove beneficial to New Zealand motorists who favoured the small English cars. As a rule their performance under New Zealand's more rigorous conditions was good, but. the difference of even two horsepower could make a remarkable difference to the small car owner.