Oshawa Times (1958-), 31 Aug 1966, p. 22

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22 'THE OSHAWA TIMES, Wednesdoy, August 31, 1966 Auto Companies Sales Don't Match 1965 Total By GORDON GRANT Canailian Press Staff Writer _After four successive of setting records for au' 7, hile sales. even matchin: existing high may be -- on as a backward step. But that's what the. Cana- may have to settle for this year, ar iiless the new 1967 models sell in record numbers. Last year Canadians bought 633,517 North American-type passenger cars, 83,000 more than the old high. But to the end of July this year sales to- talled 404,800, down 4,000 from the 1965 record pace. "There won't be a signifi- cant change either up or down in 1966 sales compared with 1965," says one company spokesman. "But that's no reason for concern. After all you can't expect any indus- try to keep piling record on top of record. "This is particularly true when there's so much labor trouble in Canada, a tight money situation and economic clouds on the horizon." Even if sales for 1966 don't match those of 1965, this. will almost certainly be the sec- ond best year in automotive sales history. Sales in 1964 were 550,800 units, only 146,- 000 more than in the first seven months of this year. A Cross-Canada Survey by The Canadian Press shows a fair number of dealers still are optimistic that this will be another record year. But few are prepared to go along with pine yor made at the begin- of the year when auto- pon Bn were confidently pre- dicting a five- to 10-per-cent sales increase in 1966, Labor Wage Demands Irk CMA Head TORONTO (CP)--Sparked by the younger members of the work force, unions are "wildly excessice wage de- mands" that threaten to inflate the economy, the president of the Canadian Manufacturers' Association said Tuesday. Henri W. Joly told a Canadian National Exhibition directors luncheon that these demands can only be met with higher | consumer prices, If national prosperity is not to suffer, Pay increases must not be 80 exiravagani thai they lose all relationship to the real increase 2" the value of goods produced, he said. Unions fail to realize that the | it Wage increase which the federal government negoti- ated in the Quebec longshore- men and seaway workers strike is not feasible in all businesses, he said. "We are seeing in industry on the part of younger members of the work force the same kind of tendency to rebel against routine, orthodoxy and any sug- gestion of social discipline that characterizes so many of to- day's teen-agers." The drop in sales doesn't in- clude all the major firms. Chrysler sold $2,044 cars in the -fipst seven months com- narad with 71.400 in the same period of last year. And Fora - up to 127,643 from 122,- But General Motors, the in- dustry giant and weather- vane, was sharply down, sell- ing 178,157 cars to the end of July compared with 193,480 in the first seven months of 1966. GM has also announced it will require fewer workers this year but added that "the long-range outlook for the Ca- nadian automobile industry remains very good." American Motors' sales were also down, to 17,000 from 21,000, but the company says it will increase its 1967- model production capacity to 50,000 cars a year, counting on exports to the United States to absorb most of the extra output. And it will also add 300 workers. The survey shows that rea- sons Offered for the drop in sales vary. With the exception of Newfoundland, where some dealers report sales up as much as 40 per cent, the em- phasis in Eastern Canada is on tight money. Western deal- ers say tight money isn't a factor. And while labor condi- tions are blamed for some ad- verse effects on sales in Brit- ish Columbia, dealers else- where say s trikes haven't -- the cause of their prob- ems. meneame wie -- - 2. 2 ee Part of the sales slump in the United States has been blamed on the great safety debate but with the excention of a handful of an -- B.C, and Quepec, sus is that it pot y affected sales in Canada. "In one instance we sold six new Corvairs when the car was criticized in the press," said Ed Vickar, president of the Winnipeg Motor Dealers' Association. Nevertheless, car manufac- turers will add features to new models to woo safety-con- scious buyers, at the same time drawing attention to power and sporty aspects of their cars, Some dealers resort to sales gimmicks to dispose of 1966 cars before the 1967s reach the showrooms. A major slump in sales early in the summer prompted Tor- onto firms to dream up a flock of promotions. --O'Donnell, Morrison of- fered a free foldaway tent trailer valued at $695 with a 1966 Rambler Classic at $2,- 995 and later began offering $500 cash to anyone ordering a 1966 Ambassador. --Elgin Ford advertised that it would toss in a free color television set with a new car, --Donway Ford put: the mames of car buyers into a barrel and drew one of each 30, giving the winner a prom- ise of a free 1967 Ford in ex- change for the 1966 model, a saving of about $900 on a trade-in. In Montreal, Cummings Mo- tors offered a new stove or Eanes with each new boa and in Regina anyone greeting to pay $1,600 for a 35 Po aead" camera would also receive a Vauxhall Viva from one dealer, PRICES LOW GM dealers displayed big signs saying they loved com- er. cars as trade-ins on Mproducts, go Donway Fond Tan an equally large ying: "weve got tnose Fords ¢ the € GM dealers love." One result of the slump, some dealers say, is that car prices are the lowest in years. A buyer reported that after shopping at three firms for identical cars he received es- timates within a $8 range. A variety of local condi- tions are offered for the way sales are going in the differ- ent regions of the country. One Newfoundland dealer was at loss to explain the strength of the market but another, Harry Norris, sales manager of Royal Garage, a Chrysler dealer, said: "Where a customer was go- ing to buy a late-model used car, the tendency now seems to be to get a new car with a couple of hundred dollars more added to the balance outstanding." In Prince Edward Island, where buyers are reported moving into the lower-price range, Ford dealer Art Arsen- ault said sales were down 50 per cent and the outlook for the rest oft he year was poor. He explained that dealers had been giving up to $300 too much for used cars and now that they were offering less, fewer people were buying new models. BLAME TIGHT MONEY A swine to lower - priced cars was also reported in some parts of Nova Scotiz. One Halifax Ford dealer, George Riley, said sales were running about 30 per cent ahead of last year. In New Brunswick, 'sales spurted early in the year as buyers acted to beat a sales tax increase to six per cent from three planned for April 1. They eased when the in- crease was postponed to next Jan, 4. Some Montreal dealers blamed tight money and the car-safety debate for the drop in sales in Quebec. GM dealer Paul Pytel said one reason for the drop in sales was that the 1966 models weren't different from 1965. Another said Expo 67 has been a factor. "They come HOUSES BUY or RENT LARGE FIRM TRANSFERRING PERSONNEL FROM QUEBEC AND NORTHERN ONTARIO. Desire 3 and 4 bedroom homes in this area; immediate pos- session or 30 days. Cash payment arranged, H. KEITH LTD. REALTOR 723-7463 Wt ow SPRING FILLED MATTRESSES Hundreds of coils. Guaranteed construc- tion. About 25 mattresses in assorted 1m tt Wai Mm 7 DELUXE MATTRESSES In Smooth-Top Construction and matching box springs. Hundreds of into the showroom und say 'T'll wait until 1967, then when my relatives come to Expo I can show off my new car.' "' The preference in some eve of Ontario this year has n for bigger, sportier cars, with fewer calhe et of stripped- down models. A spokesman for Ross Wemp, a GM dealer in Toronto, 'said the high cost of money and adverse pub- licity from the safety debate were among reasons for lower sales. Chrysier deaiers in Ottawa said 1966 has been a success- ful year with sales run more than 20 per cent ah of last year. SLICE PROFIT MARGIN An indication that dealers are cutting profit margins on each car came from Ed Vickar of Winnipeg who said: "While 1966 sales are up, we had to sell more units to maintain a profit relative to what. we had in 1965." Of eight sales managers in- terviewed in Regina, four said sales were slightly lower than 1965, three said they were higher, one unchanged, But all were optimistic about sales for the balance of the year. The big wheat sale to MUST BE TOUGHER SARNIA, Ont. (CP) -- an crime goes down as the prob- Too| ability of being caught goes up, many do-gooders are haniper-|but. he | ing police in their work, sa Judge J the Soviet Union had assured |La Prairie residents they would have. money in their pockets and they were buying what they wanted--usually higher- priced cars with lots of ex- tras. "Calgary is a good auto market," said Wilbur Young, manager of Stampede Motors, a GM dealer, "Changes in the ananame dant? enom ta see as much effect in as' they do elsewhere," ae AL berta dealers were optimis- tic about the 1967 models. . A construction boom. is ex- pected to keep sales at a Realthy level British Co- lumbia for the next few years. But unsettled labor conditions have hurt some dealers this year. Evan Wolfe, a Vancou- ver GM dealer, said his sales are about the same as last year but he had to push hard fo stay even. THE HOUSE OF FLAIRE COIF FEURS Offers Oshawe and Vicinity Personal Services In . . 6 @ Mani @ Pedi (Foot Care) © Facials @ Eyebrow Arching ° @ Make-up Consulting Eyebrow and eyelash Tinting Jane Poulson For Your Personal Appointment Phone (Ultimate In Heir 723-6901 Styling end Shaping) 14 ONTARIO 67. SENSATIONAL f tt ye mM if FLAKE Non-Allergenic PILLOWS WHILE THEY LAST .. 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