IMPORTS OF CARS

Gisborne Herald, Volume LXXII, Issue 21756, 4 July 1945, Page 4

IMPORTS OF CARS

“THE ACTUAL FACTS” PROBABLE” NUMBER IMPORTERS’ STATEMENT (P.A.) WELLINGTON, July 4. "The announcement that motor vehicle importers would be permitted licenses for the importation o| unassembled cars for the 194(1 licensing period up to 79 per cent, of the total value of the assembled and unassembled cars imported from the United Kingdom in 1938 lias led many people to assume that passenger cars will be freely procurable in 1940 when in actual fact there is no such likelihood,” says a statement issued by the New Zealand Motor Vehicle Importers’ Association. “During the war period there has been in all countries a steady trend towards higher cost of production and the inevitable result will be an increase in the price charged by the overseas supplier to the New Zealand importer. Consequently the limitation of the importation by the New Zealand Government to not more than 75 per cent, of the money value of the cars imported from the United Kingdom in 1938 means that the probable quantity of cars importable from that country will not. ■xceed 50 per cent, of the number imported in 1938. “However, the United Kingdom was not the only supplier of cars in pre-war days. Fully 40 per cent, of New Zealand's purchases were made from Canada, the U.S.A.. and other countries and so far no import licenses have been granted for any importations from these sources. Therefore, import licenses granted so far provide for the importation < f approximately one-third only of the number of cars sold in New Zealand in 1938.

Rise in Costs “As against this, virtually no passenger cars for civilian sale have been brought into the country during the past live years and there must 'now be many more buyers than can Ihope to be satislied out of the relatively few cars that may be imported under the import licenses now granted. In 1938 passenger cars were imported into New Zealand to a total of 27,558. In 1939 the figure was ,21,953. In 194 C on the basis of the import licenses granted by the Government to date, the number will be about 8,000.

“The manufacturing companies overseas are only now beginning-to plan their 1940 production and l'uil price information is not yet available in New Zealand. It is commonly believed in overseas manufacturing circles, however, that because of increases in wage rates, costs of materials) and costs of freight services etc., prices charged bv overseas manufacturers for cars and trucks produced in 1940 will be at least 50 per cent, higher than the pre-war prices: The disparity in New Zealand between the pre-war pricing and af-ter-war pricing will bo even greater because motor vehicles in this country are now subject to the sales tax of 20 per cent.’ Unless this tax is modified in the meantime it in itself will cause the retail prices of new cars to be substantially higher than they were in 1939.”