THE FORD PROJECT.

Hawera Star, Volume XLVIII, 24 November 1924, Page 8

THE FORD PROJECT.

UkITIUSM IN AUSTRALIA.'

EiFFEUT ON INDUSTRIES

'The entry of the Ford Company into Austraua, instead of being beneficial, is likely to prove disastrous to Australian interests, is the opinion of Mr. H. W. Harrison, editor of the Australian Motorist (says the Melbourne Herald). “Senator Wilson and Major Oakley are credited with persuading the Ford Company to open in Australia,” said Air. Harrison. “Ir this is correct, it shows the danger of a politician or a Government official interfering with industries about which they have insufficient knowledge. “The amount of Australian capital now invested in connection with the assembling, completion and marketing of Ford cars, and providing the necessary finance for merchandising them, together with buildings and plant is over £5,000.000. The profit on this investment has remained in Australia, but when the Ford Company opens those profits apparently will go to Canada. “For a number of years Ford cars have been imported as component parts, and entirely built up with Australian labour, and, in addition to a large number of parts which are also made in Australia, every Ford chassis sold in the last several years has been fitted with an Australian-built body.

“To supply these bodies, a large amount of Australian capital has been invested, and on the opening of Ford’s own body works all this Australian owned plant and capital will be nonproductive. It means, therefore, that instead of bodies being built in Australian owned factories, the business will automatically go to a Canadian owned factory. “One large body builder, who constructed 18,000 bodies last year, paid out in wages £438.463, which gives an average of over £24 in wages per body built. This is one of the several Australian owned companies which are largely dependent on Ford bodies for their output. It seems regrettable, therefore, that the Canadian owned company will take this business from Australian owned companies. “The selling price' of Ford cars in Australia has always been fixed by the Canadian Ford Company, and the' only change l that could be made in the price would be per medium of the bodies, ft is not generally known that the oody fitted to Fard cars in Australia is not similar to that which is used in America or Canada. Approximately 50 per cent of the Ford bodies are upholstered with Australian leather. That the Australian wants a better class of body than the American is evidenced by the fact that 50 per cent of the lords are known as the Ford De Luxe. When the Ford Company opens in Australia it will be free to alter its policy regarding coachwork, and a severe loss may be experienced by Australian tanners.

For a number of years the Ford distributors in Australia have been adopting the same methods, but on a smaller scale, due to smaller output, as are used in the Ford factory, for assembling; therefore there doe’s not seem, to be anything to be gained by transferring those assembling plants from Australians to Canadians, and causing heavy financial losses to the former

“The information contained in 'the cables mean s simply this—The Ford Company has decided to take for itself the profits which now go *0 Australians who have their capital invested in the lord business.

“The amount of money now paid to Australian builders of Ford bodies is not far short of £1,000,000 a year. This is a very large turnover to be lost by Australians and handed over to a Canadian owned eomnanv.

“According to Press * reports Mr. I ratten has promised to give every encouragement to the Ford' Company, •md ho will stretch the tariff ns much as possible to assist them. Apparently Mr. Pratten is entirely ignorant of the motor industry, otherwise he would not offer assistance to an oversea concern to capture a valuable string of Australian industries.’’ Stop that toothache with Barrac.louph’s Magic. Nervine: 1/(l.—Advt.