The importance of the BUENOS AIRES EXHIBITION
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to British Commercial-motor Makers
Still Time to Enter for the First Exhibition Devoted to British Empire Products Ever Held in a Foreign Country. The Argentine's Value as a Market
TN an editorial appearing in our issue for last week we drew attention to the importance of the British Empire Trade Rxhibition, which has been organized by the British Chamber of Commerce in Buenos Aires, and which will take place in that city from March 14th to April 27th next year.
The British manufacturers' section of the Society of Motor Manufacturers and Traders has taken the whole of Pavilion No. 14, which is about 200 ft. long and 160 ft. wide, for a collective exhibit of motor products, both commercial and private. All this space is now let, and we are glad to say that some of the4best-known British makes of commercial chassis will be d ispla.yed there, including MorrisCommercial, Leyland, Guy, Scammell, Foden, Cominer and Daimler.
Limited Space Still Available.
There is still limited space available in the0 adjoining pavilion, No. 12, and -Mr. W. S. Barclay, F.R.G.S., secretary of the London committee for the exhibition, 5, Parliament Mansions, Orchard Street, London, S.W.1, has agreed to extend Jiro to September 10th the time for receiving entries. Thin. extension, made at our request, provides at this late stage an opportunity for chassis makers, who have not thought fit to exhibit, to change their minds and seize this valuable opportunity.
Economically, Great Britain and the Argentine are complementary to each other, and the importance of the latter country -will be realized when it is stated that it transacts 50 per cent, of the total foreign trade of South America. According to calculations made in 1925, it had then a, population of 16 per cent. and an area of 16 per cent. of the southern continent, yet it possessed 43 per cent. of the mileage of rail
ways and 58 per cent, of the motor vehicles. The amount of British capital at stake in the country is reckoned to be between 500 and 600 millions sterling, this comparing with investments of about 460 millions in Canada, 280 millions in U.S.A. and 300 millions in Brazil.
The total annual value of the Argentine import trade since 1923 has moved between 150 millions and 180 millions sterling. In 1913 the country's imports were valued at 496 million gold pesos, and this figure rose to 857 Million in 1927 and 901 million in 1928. Of the 1927 total, shipments from Great Britain accounted for 166 million. pesos, compared with 218 million for U.S.A. and 97 million for Germany. British statistics show that in 1928 our exports to the country exceeded in value 31 millions sterling, our imports amounting to nearly 77 millions, which is more than from any other country, except the United States.
About 40 per cent. of the beef consumed in these islands is of Argentine origin. Of the country's total export in 1928 of frozen mutton, 77,614 tons, we took 72,658 tons, or about 03.5 per cent., and in that year our imports of grain were no less than 2A. million tons, valued at 126,000,000.
Important Transport Services.
The shipping that enters the River Plate ports annually amounts to some 11 million tons and 45 to 50 per cent. of it sails under the British flag: The river services, which ply on the vast inland waterways of Argentina, effecting communication with Uruguay and Paraguay, are financed mainly by British capitalThe tramway and subway system of Buenos Aires, which carries some 700 million passengers per annum, is British to the extent of 74 per cent_ of its capital.
As is well known, for 200 miles inland from the Atlantic there extends a vast alluvial plain about 1,000 ft. deep, particularly rich in its harvest but practically devoid of stone. As a result there are thousands or kilometres of earth roads, but ol these it is estimated that less than 1,000 kiloms. can be classed as good motor roads, or even as passable all the year round. The length of paved or engineered roads outside the biggest towns is insignificant. Agricultural interests estimate that 60 per cent. of the cost of cartage of produce would be saved if the country had good roads and mechanical transport, and American motor finance has actually been offered for road-construction purposes.
A Growing Market for the Commercial Motor.
Nevertheless, commercial motors are largely used and the import figures are rising rapidly. Where the ground is hard enough for heavy transport, at least in the dry months, quite a number of big British machines is in service. In the more inaccessible country the smaller vehicles abound. There is, of course, an excellent market for the rigid sixwheeler. Farther westward, on the slopes of the Andes, the soft soil gives way, to rocky mountain tracks, and conditions are comparable with those in any tropical mountainous country. Here, again, the sixwheeler is invaluable. In the Argentine it may be said that longdistance goods and passenger services by motor do not as yet compete seriously with the railways; on the other hand they have, by reason of the wider range possible than with horse-drawn vehicles, benefited the railways by opening up new country. Motors are keenly competing with the railways on short routes in and out of the bigger towns.
A record year for the imports of all types of motor vehicle was 1925, when 56,913 cars were absorbed. The fall-off in the subsequent years was partly due to The temporary withdrawal of the Ford organization from active salesmanship, but also to the congestion of the Buenos Aires streets and the paucity of country roads. The statistics for commercial vehicles, however, show a contrast with those for private cars, both in increased importation and in the much More favourable showing of British makes. The following table illustrates this point :
Argentine Imports of Commercial Motors (Goods and Passenger).
The British figure for 1928 was nearly 600 out of a total of 20,000 commercial motors imported. The proportion is pitiful, but the British advance is steady. During the first nine months of 1929 13,154 commercial vehicles were imported from U.S.A.,1577 from Britain, 131 from Italy and about 85 from other European countries, and figures obtained
at the end of last year indicate that there were then in actual service in the Argentine about 216,382 private cars, 28,859 cars for hire, 2,467 motorbuses and 54,100 lorries.
Financial Co-operation Needed by British Makers.
As regards marketing conditions, a Government report states that little or no interest is shown by local motor dealers in agencies for British commercial vehicles, unless manufacturers be willing to co-operate financially. The following points must be borne in mind : (1) The greater demand is for a . low-priced medium-quality vehicle.
(2) A ground clearance under chassis parts of at least 10 ins, is essential.
(3) High horsepower and good acceleration are valued.
(4) Advertising is most important.
• British manufacturers cannot expect to enter this market without expenditure, and merely exhibiting at the forthcoming exhibition is sure • to result in disappointment. A competent technical representative must be sent out, and the cost of hired premises, the shipping of demonstration vehicles and of spare parts, etc., have to be contemplated. Under present conditions, no good local firm will shoulder this expenditure.