MOTOR PRICES UNLIKELY T0 FALL.

Manawatu Times, Volume XLII, Issue 1808, 5 May 1921, Page 8

MOTOR PRICES UNLIKELY T 0 FALL.

That the prices of motor cars arc not likely to be reduced for some time to come is the general opinion of motor importers, and is supported by the following extracts which have been taken from a recent letter from one of America's largest automobile factories to its local representatives:

"AH manufacturing of automotive products, because of the financial conditions and business depressions, have curtailed production to the very lowest point, and some of them are not producing cars or spare parts at all. In addition to this, they have reduced very largely their commitments with the suppliers of raw materials, and have necessarily diminished their working forces. This action on their part must necessarily be far-reaching in its effect upon the quantity of cars which will be available, for delivery when business commences again; in fact, as we have previously advised you, we are pre-, dieting a shortage of cars for the next year.

"The reduction of the factory forces by such a large extent makes it- necessary for this labour to seek employment elsewhere, and will without doubt make it very difficult and rather expensive for the factories to again bring their working force up to- a point where it will reach its maximum efficiency which has been maintained in the past, and the factories will be forced-to take a lot of green help. This will be a slow process; and an expensive one, and we believe this will bring out the reason why we cannot expect a reduction in prices, or at least any general reduction except where certain manufacturers have been charging far more for their product than it was worth under the conditions which were ruling the motor car market, say, six months ago. At least, we feel that what little has gone in increased production and the lower wages that are being paid to-day will be offset by the e-xtra expense entailed in building up a new factory organisation."