"Rapid Deterioration "
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Sir W. Rootes
" OUR year opened with every prospect of good sales, but a rapid deterioration took plate when petrol rationing was introduced," stated Sir William Rootes, chairman of Rootes Motors, Ltd., in his annual report last week.
In six months' trading until January 31 this year, the group suffered a loss, but by May home sales had greatly improved and the company were restored to a healthy financial position which continued until the end of the year under review. Current production and sales were at a high rate although the price margin had been cut fine.
By the end of January, sales of Rootes vehicles had fallen to a level of 42 per cent, of the average monthly rate in B34 1955-56. Factories were on an unbalanced three-day week, money was being lost and the company were concerned with the serious human problem of large redundancy in employment at this particular time.
During the latter part of the past year, the group were engaged upon substantial extensions of production facilities, coupled with the development of certain new models, but continued with them despite the difficulties of that time.
Export business continued relatively well and expanded, although Australian trade was hard. The group expected to have modern facilities soon for rapid world-wide distribution of spare parts from their new subsidiary, Routes Motors (Parts), Ltd.