The UK's taxes double cost of 'People's Car'
Saturday June 6, 1953
The Guardian archivesThe British public may be able to buy a German "People's Car" within a matter of weeks. Preparations are now nearing completion for the import and distribution of the well-known Volkswagen.
A showroom in the West of London is expected to be open by July, and the main offices of the sole concessionaire in this country, V.W. Motors, Limited, will open on Monday.
Spare parts for the dozen or so distributing points are being stored in Mayfair. The commercial manager of the company, Mr Brooker, told the Manchester Guardian today of the plans.
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The plans have been pushed forward since last week's announcement that the British Government, in exchange for similar concessions for British cars, had agreed to the import of £2,000,000 worth of German cars over the next 12 months.
Mr Brooker emphasised today that the main model to be sold here would be the "De Luxe Saloon" and not the standard model sold on the German home market. "This will have a 14h.p. engine," he said, "and, according to the catalogue, will be able to do 39 miles to the gallon, though, in practice, its performance is nearer 44 miles to the gallon."
One of the main features is that it will go something like 70,000 miles without a major overhaul.
It remains undecided how much the "People's Car" will cost in this country. [the "De Luxe" export saloon costs just over £400 in Germany, and if one adds to this the 33 1/3 per cent import duty, the 50 per cent purchase tax, as well as insurance and freight charges, the final price to the British public would be around £800]. This is no longer a cheap car, and it will be interesting to see whether the German company will bring the price down.
The main Mercedes-Benz agent already has a waiting list, though these cars, like other German models, have not been imported for the general public since 1939. A retail price for this country has not yet been worked out, though it seems unlikely that any of the models will be able to be bought for less than £1,500. The exception perhaps may be the well-known diesel-engined car.
It would be wrong to exaggerate the size of the threat [to British car makers]. Even if Volkswagen cars alone were brought into this country the £2,000,000 quota would restrict the number to something like 3,000 cars in 12 months.
That is a small slice of the British market, but any moves to keep British car manufacturers on their toes can do nothing but good.
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