Armstrong Siddeley Motors Ltd. Car policy meeting No.3

1 Present 2.3-litre car position. a) There are approximately 528 cars on the present sanction for disposal. 50 sets will be retained for spares and 25 earmarked for group requirements. b) The suggestions for dealing with the balance of 453 cars are shown below: i) On the 18 August, we agreed to the re-instatement of the 20% agents' discount. ii) It is proposed to reduce the total selling price from £1728 to £1596, the export figure remaining at £750 ex works. iii) The proposal in paragraph (ii) entails a loss of approximately £43,000. 2 With the object of setting a larger price differentiation between the present 2.3 and the new 3.4-litre motor car, an alternative price of £1557 would increase the loss to £43,000. 3 On today's information comparison of price competitive makes is as follows: Alvis 3-litre £1945 Daimler 3-litre £2334 Jaguar 3.5-litre £1774 Rover 2.3-litre £1487 Armstrong Siddeley Motors 2.3-litre £1596 or 1557 Armstrong Siddeley Motors 3.4-litre £1728 4 I feel certain that at a selling price of £1728 for the new car (this includes double Purchase tax and 20% agents' commission), we shall obtain a very substantial amount of business