NEW CHASSIS IMPORTS

Hawera Star, Volume LII, 28 January 1933, Page 12

NEW CHASSIS IMPORTS

AUSTRALIAN TRADE ACTIVE

COMPARATIVE RETURNS

ANALYSED,

Statistics which nave been compiled by one of the principal tyre manufacturing companies in Australia reveal an unusual condition wITh regard to the present ratio of imports of new chassis to the total number of registered vehicles in service in the Commonwealth. There has, of course, been a very marked falling-off in the number of new ears and trucks brought into Australia in recent 3'ears.

During the period, 1927-28, 07,872 units were imported, while the total for 1928-29 was 99,493. These figures must be contrasted with the returns for 1930-31, which are given as 9352, and those for 1931-32, when the tally dropped to a total of fewer than 5000 for the financial year. During the four months ended October, 1932, a further 3834 chassis were brought, in, and it is of course, well known that during the last few months there has been a very decided increase of activity in the motor trade and numerous shipments of new models arc arriving. Bur. when one considers the present turnover in comparison with the number of registered ears and trucks which are in service in Australia, and intriguing situation is disclosed. It has been estimated that of the present total of some half-million' motor vehicles now in use. more than 200,000 are at least five years old and that of that number it is probable that quite half have been on the roads for more than seven years. The explanation is obvious; namely, that because of financial stress motor users have refrained from purchasing new models and have instead temporarily curtailed expenditure by the re-eomlitioning of old vehicles. That state, however, cannot endure indefinitely, and the blunt fact is that either the sales of new ears must increase exceedingly during the next few years or the number of motor vehicles employed in Australia must be progressively reduced. The position is one which must give rise to much perplexity in the minds of all who have the welfare of the local motor industry at heart, and in connection with that it is well to recall that within the last five years that industry has become of vastly greater national significance than it was formerly. Today one cannot think of cars and trucks as mere imports, w'hose only useful public , function is to provide revenue by way of the tariff, for a great number of standard chassis components and accessories, not to mention practicallly all bodywork, afro fabricated in Australian factories, which employ many skilled workers and" in which much capital has been invested. Ir. was said, and probably with truth, that during the years of great national prosperity there was too much reckless buying of ears on the part of persons who could not afford to maintain them, and it would be idle to suppose that there is any immediate prospect of such a quickening of trade that the weekly total of new car and truck sales will approach to the amazing figures of four or five years ago. But all sections of the community share a common desire that there should be no further decline in the number of vehicles in use in this country. Therefore tho recent records of imports make disquieting reading. Assuming the present rate to be about 10,00(1 units a year, and that, as has been authoritatively stated, the normal annual wastage or writing out of use of vehicles in commission can be "put at 7 per cent, on the total, one finds that on the. basis of half a million cars a further 25,000 new units are needed annually for replacement purposes. In other words, unless sales of new vehicles in Australia are within a reasonable time stabilised at that figure, despite the constant repairing and reconditioning of old models, the number of motor vehicles usefully employed seems bound to diminish/ 'How such a condition is to be avoided and a timely and great increase in turnover secured is a vital problem, which, at the moment, seems impossible of solution. It is stated by the car distributing firms that they cannot. make any further concessions in the way of lower prices, for the reason that their margins of profit on each sale and their diminished turnover in most cases preclude any reductions below the selling prices ruling to-day. On the other hand, motor -traders declare that should it be found possible, because of more buoyant Federal and State revenues, to modify the taxes which, the motorist now has to pay both directly and indirectly, especially remembering the impost of 74d per gallon on petrol, then a stimulus would be given to the buying of new cars. Apai t from those matters the remedy must be found in the gradual return of national prosperity and individual confidence.