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Israel Cabinet Body Hears Plan on Replacing Renault Autos

An Israel Cabinet Interministerial committee met today to consider a proposal of officials of the Kaiser-Frazer assembly plant in Haifa to manufacture a small car locally following the decision of the Renault company to cease assembling its Dauphine at the Haifa plant.

It was reported that Kaiser-Frazer officials said they could produce a complete car. Some of the parts would be locally produced and the rest would be bought from specialized manufacturers in accordance with automobile industry practices. The officials indicated this could be achieved within 18 months.

The officials reportedly told the Interministerial committee that manufacturing costs would probably be higher than the arrangements affected by the French auto firm’s decision to halt Israel operations. They suggested that the Israel Government should reduce excise and purchase taxes on such locally-made cars to keep retail prices at a competitive level.