The World's Markets: Challenge to America

Sun (Christchurch), Volume VI, Issue 1790, 8 November 1919, Page 7 (Supplement)

The World's Markets: Challenge to America

*J"2JCgRIEF as is the history of the 'jjßsjrJw motor industry, it is one of an amazing growth excelled by that of n0 other branch of meehaniJMaKKfll cal enterprise. Yet the industry is on the eve of a further expansion of a magnitude hitherto undreamed of. To the enormous output of America will be added the production of the huge manufactories of England, France and Italy, which, swollen in size to meet the demands of warfare, are being diverted to the needs of peace. Really, the War has meant that the medium of production has been enlarged. And this expansion appears to be more than justified, first by the insistent demand which is the consequence of a world shortage in motor cars, through the diversion of a large portion of the output for five years to war needs, and, second, to a natural increase in the demand. The reason for the latter needs little explanation. Save in the countries of the Central Powers, and in those. on the fringe of the conflict, a general wave of prosperity is the rule, whilst no longer can a car be considered as a mere luxury. A trade conflict for the markets of the world is inevitable. Suitability of American Cars. In this country, particular interest will lie in this struggle for supremacy, by reason of the fact that the American car is solidly entrenched, and it is now recognised that, to succeed in regaining its pre-War hold, the

WELL-KNOWN TO MOTORISTS.

British-made car will need to,differ materi ally in several respects. When Great Britain, France and Italy were compelled to devote their manufacturing resources to war purposes, the American manufacturer had practically a clear field in such markets as tha Dominion. At the outset, the American typo of machine was moire suitable to colonial conditions than the English or Continental, especially on the rough roads of the interior. The American car was lighter than the British, it possessed a large engine power for the weight of car, a high clearance, a standard .cart track—a big factor on a rough road —and its low gearing did away with the continual changing necessary on hills, which the average driver dislikes. At the same time this low-gearing, under such conditions, meant a saving in the petrol consumption. The pre-War English car,.although of very fine quality, and with a reputation for reliability, was made for British roads, without any regard for colonial conditions, and largely differed from American cars in the particulars mentioned. It is little wonder, therefore, that a prejudice against the American car which, originally, was strong, has largely been dispelled. The United States has supplied the bulk of the cars imported during the War period. In 1918, export from America had slackened, for as this country realised the necessities of war, its Government required a diversion of 75 per cent, of the output of factories to war needs. But during this year, the total imports from America into the Dominion of motor cars, motor cycles and materials represented £815,623—the value in the country of origin—against £109,420 from the United Kingdom. The imports from America were much greater in 1917, 1916, and 1915. The New British Car. To recapture, or even secure a fair portion of, their old trade is obviously a distinct proposition to the British and Continental manufacturer. But they now carry greater guns than they did in pre-War days. To take the countries in order—the British manufacturers generally seem to be evolving a new type of car. British mechanical genius in motor car construction has always eclipsed the American. Possibly the only real mark made by the American inventor in car construction is in lighting and starting improvements. A lighter type of car has almost generally been adopted by English" manufacturers, with superior comfort and finish to the American article. Indeed, they are showing a distinct disposition to study overseas requirements and conditions. This is in marked contradistinction to their previous qttitude of making the car to suit their own ideas, and then offering it elsewhere. In this connection the British Motor Traders' Association has sent a commissioner, Major Goddard, to the Dominion to report on conditions. To return to the new type of car—aluminium is being largely used by makers for the body work, and, apart from the better opportunity this gives for design, from the point of view of appearance and comfort, lightness is achieved. They incline to a low, rakish body, with especially comfortable seating accommodation. They are designed for colonial use, and will embody electric lighting and starting, standard car track and many other features. Certainly they will be a distinct improvement on the pre-War models. Massed production to turn out a

four-seater car of from to 16 to 20 h.p. is practically certain to be adopted. Reconstruction Delays.

As yet, however, there is little actual performance in this respecL Manufacturers are finding that the biggest proposition they have ever faced is in the reconstruction of their factories from the purposes of War ,to those of Peace. The machinery has been used for all purposes, which range from shell and fuse construction to the manufacture of searchlights and gun mountings. Naturally a tremendous amount of alteration is involved. Much machinery is unsuitable or

worn out. Then, "more important still, massed production is, likely to figure considerably in the industry, and this involves special machinery. Indeed, four large concerns prominent' in munitions construction have announced that they are starting massed production. English manufacturers generally are confining attention to one design of

chassis to suit several body designs. Once these factories come into full operation, the output will be enormous. These factories are not likely to be reduced appreciably in size from the war-time level, and their output is likely to be 50 per cent, more than, and in cases double, that of pre-War days. To quote one instance: The Austin works previously employed about 1000 hands. At the

A VIEW IN THE RAKAIA GORGE. A line place for motor picnics, about 63 miles from Christchurch.

Armistice there were 20,000 on the pay roll. Although they may turn out other lines of goods, production will be mostly, confined to the motor trade. In the meantime, they cannot cope with the Home demand. This is abnormal, and prices are fluctuating. A Lanchester car sells in England at £2500, and a Rolls-Royce up to £SOOO. A common price is £3OOO. The Imperial Government is easing things by releasing its large stocks of cars and a certain number of American manufacture are on the Home market. A Two-Years' Interval. With this slowness in adapting factories

for trade purposes, and the big Home demand to satisfy, it will be possibly from 18 months to two years yet before full attention can be directed to the overseas markets. Meanwhile, for a year at least, a very small proportion of English cars is likely to come this way, and then they will only be released, so as not to lose a grip' the market

Indeed only a comparatively few English cars have been received since the Armistice The Continental Position. The factories in France are possibly in a worse position than those in England. Mostly they were engaged in War production, in which motor car manufacture did nol figure. In consequence, they are struggling

under difficulties to change over, and it will be a long time before they can resume full production again. But makers there state that they will manufacture types of cars to suit outside conditions. The Citrpyne is a car which is to cater for overseas conditions. On the other hand, Italy is practically in a position to start, and already has models out. Labour troubles alone are holding matters back. Entering the "War later than England and France, Italy was in a strong position. The Italian motor car factories were already producing for the Allies before they become belligerents. The Government policy, too, was to keep the factories on motor work, and , not to switch them over to other classes of -engineering. Italy mobilised 5,000,000 men, and yet was able to find the motor transportation for this vast army, entirely within her own borders. In addition, she was able to supply large quantities of motor vehicles to her allies, including America. This explains why Italy, which, before the War, was noted more for the quality of its motor cars, is now one of the biggest prpducers in quantity. The Italian rate of exchange, too, favours trade. To-day the .pound sterling represents 41 lire, which is roughly about 30/-. The standard before the war was 25 lire to the £. This is in marked contrast to America, where the £ sterling, on conversion into dollars, is equivalent to only about 17/-. Dearer American Cats. It is reliably stated that America is anything up to 1,000,000 cars short of its own requirements. Indeedj" prices for American | cars are stated to be almost certain to adivance", possibly'by 10-per cent. This is due I .not only to the enormous demand, but rising „ costs in material and labour are assisting the ... upward trend. There is a.large amount of *- labour disturbance, the industrial unrest approaching that of Italy. It is considered that it will be 15 months yet before America makes up its own leeway, which, of 1 .course, is the result qf the factories supplying military'needs for a time. Fortunately for the American manufacturers, their workswere not "converted" for this purpose to such an extent as in France and Great Britain.' But it will be seen that even the American producer will not - hold all the truriip cards when the coming trade conflict occurs oh the overseas markets. The Coming Conflict. What, then, will be the position on the New Zealand market? The requirements in ' the way of cars have grown. With closer land settlement, new areas have been openedup, and- more cars are required; The improvements in roads in the settled districts have also given a fillip to motoring. Indeed, to take the Canterbury roads as an example, there are now less streams to ford, and by no means the same necessity for a speciallyr designed car as was the case eight years ago. Even,-therefore, if British manufacturers do not adopt all the improvements they promise, this may not be a great handicap. Of course, much will depend On prices. The American cars are likely to be dearer, and the high exchange rates will add to the cost. English manufacturers have had to face large increases in wages, but these may be ■ largely off-set by massed production. Possibly if the English or Continental car can get with-. •,in £SO to £6O of the price of the corresponding type of American machine, it would compete very successfully. If it could get down to the American level it would probably have an overwhelming advantage. That admission was made by men who handle American machines. It must be admitted that, once the Continental demands are satisfied—"and Germany is likely to be a heavy purchaser—the enormous output of the English and Continental producers must be felt on such markets as the Dominion. British manufacturers before have lost trade and "regained it. At one time they controlled the world's markets in bicycles. America then captured this trade. It was then that the British manufacturers really exercised their engineering resource, ingenuity and enterprise to the full, and thus regained the position. And who would say that the English manufacture, when looking'for an outlet for the flood of motor cars, will not be. prepared vto take up the challenge of the American producer and fight for a market to the utmost?

■ ~ I ' SB "Against the Grand Prix.

v Some of the leading French manufacturers are doing their best to kill the 1920 'Grand Prix race. A meeting of the<lhambre Syndicate des Constructeurs was held and a unanfmous vote was taken against racing in 1920. It was not a difficult matter to engineer such a vote. Under the most favourable circumstances there must be a greater number of makers who will .riot race than those who have decided to build speed creations. All that.was necessary, therefore, Was to get together a meeting from which the racing enthusiasts were excluded in order to obtain an apparently unanimous vote of the French trade against racing. ■ The leader of the racing opposition is Louis Renault, the most important motor manufacturer in France, who has not taken part in any speed contest since he won the Grand Prix of 1906. The idea of the big manufacturer is that racing only tends to bring the small makers to the front, to the detriment of the old-established firms.

* Linseed oil mixed with a small amount of graphite is recommended as a lubricant for door hinges and latches, which seldom receive attention in this way. Ordinary cylinder oil has a tendency to run, which is not desirable at this location, because the clothes of passengers are likely to come in contact with it. Rusty rims are detrimental to tyres and should not be allowed to remain in that condition longer than can be helped. When rims are in that state they should be scraped with a sharp tool, then lightly pounded with a wooden mallet until all the flakes of rust have been battered off, followed by a vigorous treatment with sandpaper. After the surface has been properly cleaned, the rim should be painted. Shellac sometimes has been used instead of paint, but it is not satisfactory, as it peels off in a comparatively brief period. Graphite paint or even ordinary paint will be found much more serviceable. It is almost needless to say that tyres should not be replaced until the paint is entirely dry.- ..,„., ■ ,