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Big Overseas Sales Drive Needed

10th July 1936, Page 40
10th July 1936
Page 40
Page 41
Page 40, 10th July 1936 — Big Overseas Sales Drive Needed
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Which of the following most accurately describes the problem?

An Interview with Mr. W. E. Rootes, Li Joint Managing Director of Rootes, Ltd., Who Has Just Returned from a World Tour Extending Over Six Months EARNING, last week, that Mr. W. E. Rootes, joint managing director of Rootes, Ltd., was due back on the Friday from his world tour of 25,000 miles, undertaken in the interest of his company, and, incidentally, in that of the British motor industry as a whole, we arranged an interview to hear something of his experiences covering his six months' absence, knowing that it would be of value to the commercial-vehicle industry.

"What are your general impressions of your tour?" was our first remark.

"Well, one must start out by being enthusiastic about British vehicles, but it does not do to come back feeling 100 per cent. satisfied. The Government, British makers and merchants have taken an entirely different point of view towards world trade, and one finds great signs of activity. Overseas the motor industry, in general, is considered of such importance as to be absolutely in the forefront. The United Kingdom vehicle has an excellent reputation, and the makers are rapidly establishing agencies and distributing centres.

Our Suppliers Must Buy.

"You must appreciate that there is an enormous volume of trade to be done, but we must seize our opportunities. We are one of the world's largest purchasers. Everyone knows how valuable a client can be, and we should pay more attention to the fact that we are an important factor in other people's calculations. In the Empire one finds a great deal of apathy existing amongst Britons abroad. Many are inclined to run down the products of their own country ; there is not sufficient enthusiasm in pushing Empire trade. It seems far easier to criticize than to lend a helping hand, but if we areto achieve more in the motor trade we require the support of our nationals all over the world."

"How should we set about this?"

"I think," replied Mr. Rootes, " that we should give much more attention to our overseas business, B30 travel more, pick up more information and make a closer study of what is required. Our products are good, but we want better merchandising. No manufacturer should take up the point of view that he is not concerned; it is the duty of all to be interested. Only by such general. knowledge being gained by the producers can they, in turn, guide and inspire the Government.

Causes of High Cost.

"Although our Empire business is increasing and will continue to increase, we shall never obtain the amount of business available to us in world trade unless manufacturing costs can be reduced. We must, to some reasonable extent, bring retail prices more in to line with those of other countries, particularly the U.S.A. Every contributory cause towards higher cost should be considered, especially steel. Between 30 cwt. and 2 tons of iron and steel are used in the production of a motor vehicle, and it is essential that the steel maker should keep his price at such a level as to contribute to the exporter becoming more and more competitive. By this, I do not mean that the standard of living of our workers should be decreased. There must be more effective production methods. A lowering of retail prices would bring not only greater employment and higher wages through the export business developing, but also through motor vehicles becoming available to a greater range of the buying public in this country."

"What other factors contribute towards high cost?"

" The exporter needs, and must in due course seek, greater co-operation in respect of more competitive rates from our shipping companies. They, in common with most of us, do not appreciate the fierce competition that exists, and how producers in other countries can have their freights carried at lower net rates than can we.

"Another important factor is that if this country and our Government are to adopt a more progressive programme in respect of automobile production in general, we must look at our road problem throughentirely different spectacles."

"How are other countries facing the problem?"

"In the U.S.A., particularly, one is forced to realize that they are fully alive to the great asset that road transport affords to them nationally. They are, consequently, using greater vision in their roadmaking, especially in respect of facilities for entering and leaving the bigger cities."

Less Congestion in U.S.A.

"In view of the great number of vehicles in use in America, did you find much traffic congestion?"

"Whilst there are more motor vehicles in use in America than in the whole of the rest of the world, one does not find so much congestion in New York as in London."

"How do our vehicles compare with those of our competitors?"

"When it comes to mechanical performance, we can do as well as any other country."

"What views are held abroad concerning the future of the oil engine?"

"All over the world there is great appreciation of this type of power unit, but everywhere one finds taxation methods devised to delay its progress."

"What of the road-rail problem?"

"This exists everywhere, but it is believed that road transport will hold its own, although many consider that air transport may, eventually, take the place of both."

" What are the prospects of the British• commercial vehicle? "

"In my opinion, more progress is being made on the private-car side than on the commercial. We cannot educate the world to our ideas. We must adapt our ideas to the requirements of others. The British vehicle is perfectly suitable for overseas, brit it must come down in price."

"Can this be achieved?"

"At present we are not in a position to reduce prices, but we must all get together and find, by ingenuity, co-operation and better production methods, some solution of the difficulty. The motor industry is progressing to-day in this country because, after the Government gave it an advantage by the institution of a tariff, it passed this on, but this has not applied all round amongst the suppliers of materials. Because the country is busy, material suppliers must not try to get better prices; as production increases the cost should be reduced. It must be remembered that the factor of greatest importance is the basic cost, because in the export market all other costs depend on this. The import duty is increased and the retailer takes a, bigger percentage."

We left with the clearly formed impression that British trade, so far as export is concerned, is faced with some difficult problems, which will be overcome only by closer co-operation amongst all concerned, whether makers or suppliers, and not excluding a helpful attitude on the part of the Government.

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