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The Problem of Effective Action to Capture German Trade.

26th November 1914
Page 2
Page 2, 26th November 1914 — The Problem of Effective Action to Capture German Trade.
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Which of the following most accurately describes the problem?

The manufacturer of British commercial motors is badly placed, for the time being, in respect of any special efforts to capture German trade. The privatecar maker is better placed, and is no doubt exerting himself in certain directions.

Much has been. written, and a great deal of it in superficial vein, concerning efforts to make a trade war against Germany. We are well satisfied, from a knowledge of the foundation of Germany's strength in export trade, that no ultimate impression will be made upon that trade unless British agency and merchanting systems are varied to suit. German trade, in South Africa and South America for example, is based upon the conduct of the actual sales and importing organization by German houses which work very closely in conjunction with, and in some cases exercise actual ownership ever, factories at different producing centres of many countries.The German merchant, although usually so prone, is not always tied to production in Germany ; he may have his works elsewhere too, but always at the cheapest point of production, and he frequently conducts such productive enterprises under names which practically defy his identification with them.

It is not enough for British makers to be ready to send out the goods. They must develop the selling and distribution organization on the spot, overseas, in the colony or the foreign country, and this inevitably means a fresh lock-up of capital for British merchants, equally in regard to supplies, stock and credit. German merchants, almost the world over, with the German banks behind them, have in past years achieved their commercial success very largely through the methods which we name. How is this deeply-rooted system to be changed1 It can be changed, we are prepared to admit, but it will not be changed in a single year, nor even in several years.

British manufacturers of commercial motors have never shown themselves anxious to incur capital expenditure overseas : they have chiefly relied upon orders through export houses in London, and the branches of those houses overseas, or they have_paid hurried visits to appoint agents at a distance. Halfa-day, for example, may have been given to New Si.mth Wales or Australia. We have records in our possession which substantiate that statement.

We believe that the immediate prospect of " capturing" German trade on a large scale depends very much upon the willingness of the big German houses in the Colonies, the Overseas Dominions, and any foreign countries to order from Great Britain when she can deliver, or from America who can now deliver. Their patriotism and love of country may cause them to suspend business in preference, but we anticipate that their commercial instincts will at least allow a share of such supplies to originate from Great Britain. Will the British maker sell that way or create his own new channels1 When the war is over, it is likely that Germany will be suffering to such an extent from war taxation that cheap production, in relation to the cost of production in Great Britain, will be impossible for some industries. The heavy-motor industry will be one of them, That likely situation, however, is not the whole story.

The immediate duty of every British manufacturer is to keep Overseas buyers of all classes fully informed of the fact that there is no disorganization in their manufacturing programmes, but merely a temporary absorption of some types for Government purposes. We have had circulars put before us, ostensibly of an authentic character, and bearing the impress of German inspiration, to the effect that British industry is demoralized, and that it is foolish of the Overseas buyer to place orders of any kind with

British manufacturers, This view must be combated, against the day when normal production for commercial use will be resumed. There has been impressment of commercial motors in Australia. and to

e8 some extent in Canada, for the provision of motor transport for the Imperial troops. Hence, potentiady at least, the British maker has ahead of him vacant markets comparable with those which are calling him in the United Kingdom. They are in part exploited by Germany, but much more so both ex ptoited and satisfied by America. Where German merchants principally nourish, there have been the strongholds of German trade. The line of least resls• tante may be to deal with them, but the course which appeals to us nationally is to see forged like means to our ends. Will British merchants also step us1 We hope they can.

The Effect of the Campaign on Design.

It is, of course, far too early, as yet, to attempt to draw any very definite deductions which will intla ence design in the commercial-vehicle world and that have been based on the experiences of the present campaign. That the latter have already been many and varied, evidence is constantly reaching us.

The four-wheeled drive is a type which will receive its final criticism in the present operations, and it is our opinion that it will result in developments of far-reaching importance. Preference as to the use of heavy or light units for military purposes will definitely be ascertainable. There will be a wealth of information with regard to destruction tests which have been carried out as between the steel and wooden road wheel, the chain, worm, bevel and spur final drive, sleeveevalve and 'poppet-valve engine, leather-cone and disc clutch, wooden and steel frame, and many another alternative method of construction. Of most of these we are in the happy position to be able to keep ourselves very well informed, quits apart from what. information official inquiry may render public in the future. It is perfectly obvious that, where a Government like ours has hitherto been satisfied to have in reserve a thousand or two ordinary civilian-owned commercial vehicles upon which to draw in case of war, vast fleets of more or less standard machines will definitely have to be held at the disposal of the Government in future. Few, indeed, foresaw before the outbreak of hostilities the all-important role which was so promptly to be assigned to the motor lorry. We in this country were ready in a way, considering the forces we could put in the field. In_ France and Germany, with their huge armies, there were none too many commercial vehicles available at the outbreak of war ; in Belgium, there were prat

deafly none at all.

When peace arrives again at last, despite all assertions to the contrary, we shall not be able to live and maintain our integrity unarmed and unequipped. The final appeal is always to force, and it has to be remembered that there is no effective policeman other than public opinion behind the Hague Confer enee. It is always open to some nation to flout the latter'a findings. We hall always, therefore, have to engage in what is more or less the ruinous preparatory competition of armaments. The military motor wagon will be required in enormous numbers in the post-war future. So that on broad lines we can assume that, whilst as civilians we shall employ as many, or even more, commercial motors than we have in the past, many will of necessity conform more or less to military requirements. The assurance that such a condition of affairs shall follow will have to he enforced by the expenditure of generous subsidies. We shall have, to par for our fleet of motor vehicles as we pay for our fleet of battle.shins, only, of course, on a very much smaller scale and largely by way of subsidy. The first and most important effect on design then, and it is one of the few which may be foreseen quit. distinctly, will be that our ordinary commercial models will conform much more closely in future to general military requirements. And for this concession civilian purchasers will secure a quid pro quo. They must be well recompensed.

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