Three Blows to Seddon's Profit
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THREE reasons for a further decline in I profit were given to the shareholders of Seddon Diesel Vehicles, Ltd., by Mr. R. H. Seddon, the chairman. These were competition from mass-producers, the Socialist threat to renationalize road haulage, and purchase tax on goodsvehicle chassis. Competition from quantity manufacturers had .intensified, particularly in overseas markets, he said. Export turnover had been reduced but still amounted to more' than half the total group tu-rnover.
The threat of renationalization had had the most serious effect on all manufac, hirers, but particularly -on the heavyvehicle specialists. Operators were running vehicles longer than they would normally consider economic and safe, and, when compelled to renew their • stock, were buying as cheaply. as possible, Whilst he' thanked the Press. for the interest that it was' taking in .the Purchase tax on goods-vehicle chassis, Mr. Seddon said that the publicity 'given to it was having the effect of curtailing sales, because operators generally were reluctant to buy at a time when so much controversy was raging.
Government Statement Urged " I feel a statement on this matter by some responsible Government official may do a great deal of good to manufacturers of road vehicles generally and dispel the doubts in the operator's mind on this point," he said.
Halls (Finehley), Ltd., the company's London distributors, had had a successful year, and Seddon Vehicles of Rhodesia (Pvt.), Ltd., had enjoyed a "fairly satisfactory" period.
Orders for the new heavy vehicles [introduced at the Commercial Motor Show] had been most encouraging.. The success of the company's entry into the municipal-vehicle field had exceeded their expectations.
Since June 30 orders had greatly improved and although profit margins were lower, Mr. Seddon was convinced that, with increased turnover, profit would be increased.