NO REDUCTION.

Star (Christchurch), Issue 16416, 3 May 1921, Page 3

NO REDUCTION.

MOTOR-CAR PRICES FIRM, Tt miv doubt existed regarding lower prices for cars it is being stendihr swept away (writes Charles S. Clancy, in the Sydney "Sun”). Here in Australia Ave have to deal chiefly with American cars, and it is definitely stated that no reduction can be expected for some time. Occasionally :« prospective buyer receives what purports to be authentic information, to the effect that prices are falling. Investigation discloses the fact that only isolated cases in Europe have been quoted. In Great Britain the resumption of ©nil life alter a period of Avar activity Found the market without modern cars. Factories were sloav to move in the proper channels for domestic and export purposes. Meanwhile orders piled up, and eventually premiums Aver© offered by the newfy-rieh. or others whose patience was short, and prices'-naturally rose in consequence. Tiie manufacturer recognised thf- chance to offer higher wages: the circumstances were favourable, and be meant to encourage production. Ther. the shadow of depression overspread the trade and values had to be revised. But wages could not be cut so quickly. Further, partially completed stocks at the higher rates could not be sacrificed. Doubtless, in a few instance'., as is the rase in all industry, emergency sales were mad© at- ridiculous figures, but those conditions did not a fleet the motor trade nor its recognised standard of vain©*. In fart, even in England, where the depression was felt, tli© manufacturers hold firmly to a fair margin of outlay, and it is a position to which no reasonable purelm ser objects. A'iewed locally, the idea of a fall in

oar prices beinv imminent is not entertained. When ;i man declares that he •• ■waiting for the slump before pnrcha-u'v: " he reveals his ignorance of the financial position. It nmat be repiembered that cars of American origin* bold our market today. and therefore it is ■with American conditions that we have to Heal. A few slight declines have taken place, Haiti .Mr fcv 1.. Tyler, president of the Motor Traders’ Association, but two of the Tpost influential manufacturers strongly adhere to old prices. When those prices were fixed they were not in proportion to the big advance in England. About September of lasti venr a =harp rise of To per cent, occurred. but it applied only to IP2I models AndL where a aecrease lias been noted it merely shaded that higher level. In Sydney, agent- do not hold the latest productions yet. Their stocks were landed at the heure operating before j the advsnre Thus nothing car. be expected in the -way of a material reduction unless a substantial drop occurs "WTipii views are expressed hy a prominent Sydney distributor, it discounts imteh 0 f the rumoured upsetting of motor-car values. Actually, the American spring ason promises brisk • business. Makers arc recovering their ! trade. ;*nd the cabled reports from the | centres of production do not indicate anything in the nature of cheaper cars.