ABSTRACT

The shift in demand and the increase in competition were met by Austin and Morris with a multiplicity of models which tended to dissipate their scale advantages. The exception was in July 1937 when Austin, Ford and Morris announced price increases, on account of rising wages and material costs, on the same day. Excluding for the moment the somewhat erratic price movements of the two Standard cars, the price pattern is very similar to that of the cheaper models. One feature of post-war competition in cars that does show a significant change from the position in the 1930s is that there has been a good deal less emphasis on variety and on frequent model change. The competition of the 1930s was to decide who the present-day contestants for the mass market were to be. Competition in the 1930s seldom took the form of short-period price competition.