HOW ITISFI

12th November 1929, Page 136

12th November 1929

Page 136

Page 137

Page 136, 12th November 1929 — HOW ITISFI

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MAKE 11: S

CAN COMPETE OVE SEAS

By NORMAN A. HARDIE, General Sales Manager of the Associated Equipment Co., Ltd.

HAVING made a survey, in many overseas countries, on the question of the employment of British commercial vehicles in them, the outstanding impression that I have gained is the -marked variation in conditions existing in individual countries. Vehicles are In de mand.' having capacities ranging from 10 cwt. to 10 tons, or from 16 passengers to 70 passengers, but, generally speaking, the lighter and cheaper types are favoured.

In England, with our density of population, our large industrial centres and good roads, the heavy and better-class vehicle is more economical from an operating standpoint, but in many foreign countries with much lower standards of living, bad roads, climatic extremes and lower purchasing powers, the territories can be developed only through the medium of the light and cheap dual-purpose chassis. In other countries, such as Australia and New Zealand, the position is quite the reverse. In the principal cities the roads are wide and extremely well surfaced, but evimunication by road between capital cities in indivrdualiStates is difficult on account of the immense . distance and the absence of properly constructed roads As regards the type and class of vehicle for use in the Colonies, there is an increasing demand for the heavier type of vehicle, both for passengers and goods, but its operations are restricted to the cities and a surrounding radius of approximately 50 miles. Although the heavy vehicle is capable of travelling over unbroken country, the lighter machine is more suitable and is, therefore, preferred. In all the cities abroad in the territories that I visited, the most popular means for passenger conveyance is the railway or the tramway. Licensing regulations are much at variance, although in the Colonies and in certain foreign countries, regulations, in line with those issued by the Ministry of Transport in this country, are being ad opted.

Operating Costs in the Colonies.

In the Colonies, operating costs are higher than those existing in England, but they are compensated by an increased revenue, as, on the average, the fare

per passenger per mile is lid. Against this, in countries such as India, Ceylon, Malaya and the Dutch East Indies, owing to the lowearning capacity of the individual, it is necessary to maintain verylow fares, and, in one particular city, it is possible for a passenger to "travel seven miles for' id.

The six-wheeled chassis, as subsidized by the home War Department, is the ideal vehicle for development purposes, but the purchase price is too high, as compared with the cheap four-wheeler, with a carrying capacity for 10 cwt. to 30 cwt. of goods, at a saleable price of between £150 and £250. That class of vehicle is being purchased in increasing numbers and it is certainly the pioneer of the construction of good roads, resulting in the ultimate purchase of a vehiele which can show a considerable advantage in cost • per ton mile operated. Furthermore, there is considerable activity in the development of passenger service by motorbuses and, although certain cities are opposed to their introduction, owing to the capital investment in existing transport systems, the travelling public is agitating for the more comfortable and more rapid means for conveyance.

High-speed Chassis Favoured.

The type of chassis that is favoured is the modern high-speed model, as manufactured by leading British makers. It is common knowledge that, in the smallcapacity categories, the American chassis is favoured, b.ut with vehicles which have a carrying capacity for 3 tons and upward; or 26 passengers or more, the

British chassis is definitely competitive, if not better, than the types offered by our American friends. In addition, there is definite evidence that we have certain advantages by way of price. In Australia, we have a profitable tariff preference, and the prices that are paid by many operators for high-class heavy chassis would be acceptable to many manufacturers in this country.

I consider that British makers were slow in producing their new and acceptable models. For many years, motorbuses were constructed on principles similar to those of heavy-duty goods-carrying vehicles, and the Americans were first in the field with the high-speed, pneumatic-tyred and well-sprung chassis which is so necessary for passenger traffic.

Wastage in Effecting Distribution.

Another vivid impression in connection with my tour of inspection was the enormous wastage amongst British manufacturers in effecting overseas the distribution of their products. In every country you find British chassis represented; either effectively or in efficiently, hut factory representatives or agents are selling in direct or keen competition with each other. Take Australia, for instance; I feel certain British makers of heavy-duty vehicles are spending nearly £150,000 annually in promoting the sale of chassis, and I am equally certain the same number of chassis could be sold for 25 per cent. of the money expended.

The number of British vehicles with a capacity for 80 cwt. and upward, and 18 passengers and upward, registered in one year in the Cormnonwealth of Australia was approximately 3,000, at a selling cost of £50 per chassis, which is highly extravagant. In certain markets there is great agitation on behalf of the British representative to induce the purchasing public to " Buy British." We enjoy a good reputation for the employment of sound materials and first-Jass workmanship, but in the lightweight-chassis class our catalogue prices are much too high as compared with those of the American maker and the preference for the British-built vehicle is minimized by the fact that we require from 50 per cent. to 100 per cent, more than the price which. is demanded for the American-made model,

British and American Methods Compared.

Individual British makers are, in many territories, subject to a severe handicap owing to the absence of proper faeilities for the distribution of chassis and I e provision of the necessary service. They are content to establish an agent or to open a small branch, whilst American makers, and with particular reference to those who produce lightweight chassis, have highly organhed assembly plants, extensive sales re search and separate. acceptance companies to deal with the large number of orders which is covered by hire-purchase agreements. Additionally, overseas agents and direct representatives often feel that they are badly neglected by the manufacturing company at home. Very few visits are pa:d to these he rtant markets by directors or principal officers and, in cases where a tour is finally 'arranged, the time that is spent is invariably too short to be truly effective.

The Need for Co-operative Effort.

The Americans have highly qualified officials in residence, whose principal job is to exploit fresh markets to the fullest extent. Referring again to the selling prices of. the light-type chassis, output is the secret of the low catalogue prices, and so long as we have so many British makers who are turning out relatively small qnantities, we must have prices which are, in comparison, high. It there be some form of amalgamation or co-operation if we are to secure our share of overseas trade, Individual enterprise is all very well, but it can be carried too far.