The Canada Cycle and Motor Company

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Russell Hall

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The motor industry in Australia was established and developed by a number of firms that often existed for decades. What is important about them is the often distinctive people who worked in them. In the history of Peugeot in Australia certain people and firms stand out. E.W. Brown and the Edwardian motorbikes, A.W.B. Mather and the French Auto Company in the 1920's and postwar the Canada Cycle and Motor Company of Melbourne. This firm was responsible for bringing the 203 to Australia. Companies often disappear with little record but fortunately a company history penned in 1955 survived and was subsequently edited by Thomas Batten.
As the name implies the company dealt in bicycles and was once Canadian owned. A Canada Cycle Company still exists in Canada. The origin of the firm was the bicycle department of the Canadian implement maker Massey Harris. In 1894 Charles Neunhoffer left his post office position and joined as bicycle manager. In 1900 the bicycle division of Massey Harris was sold to Canada Cycle & Motor Co of Toronto. Subsequently the firm was taken over by the Russell Motor Company of Toronto. All the company operations in Australia were closed down except for Brisbane and Melbourne. C.J Neunhoffer was put in charge of the Melbourne branch in rented premises in Elizabeth Street. Bicycle assembly was carried out in their workshop. In 1908 the Melbourne office began the marketing of the Russell motor car. Neunhoffer worked on setting up a state wide sales network. The first examples of the Russell had deficiencies but they later adopted a four cylinder Knight sleeve valve that was well regarded.
In 1913 the Russell Company decided to close the Melbourne operation. Although Neunhoffer was not wealthy he managed to convince the Canadian firm to sell him the business on terms. So from 1914 Canada Cycle and Motor Company was Australian owned.
 
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In 1914 Neunhoffer travelled to Canada to finalise the transfer of the business and then on to America to find a motor car to sell in Australia. He arranged for shipments of Chevrolet and Paige cars for 1914 and 1915. He met the Dodge brothers and was impressed by plain, hard working men who had an engineering background and much in common with him. He liked their car which he found sturdy, simple and dependable. He negotiated for a Graham Brothers truck to be fitted with the Dodge engine to be imported for goods haulage. The week he returned to Australia war was declared which placed serious restrictions on the motor industry but Neunhoffer returned to America in 1915 and signed a contract for franchise rights for Dodge for Victoria and the Riverina. This was very successful for the company and lasted until the mid 1950's. Up to mid 1949 30,000 Dodge vehicles were sold by CCM. The first Dodge cars arrived in 1916 and the first Dodge sold was to the Mildura Dodge dealer Yule Brothers.
In 1914 CCM was located at 334 Latrobe St Melbourne with two properties leased in Elizabeth St. One was bulk fuel store as bowsers were not in use in Australia. In fact CCM imported two of the first bowsers to Australia in 1920. They continued to assemble and market bicycles until 1924.
The war period was an inflationary one with shortages of material and labour and rising costs and prices. It didn't reduce car demand and CCM sold sixty Dodge cars over Christmas 1917.
In August 1917 the government placed an embargo on the import of complete cars from the US to preserve shipping space for war supplies. The Australia Dodge dealers approached Holden & Frost to build bodies for them and so Holdens Motor Body Builders was formed. Later orders were placed with T.J. Richards in Adelaide. After the Second War this plant was bought by the Chrysler Dodge Desoto dealers of Australia until Chrysler bought it out. (The 203 was assembled there from 1952 - end of 1953).
In 1920 and 1921 both Dodge brothers died which ended the close, even warm relationship Neunhoffer had established. In 1928 Dodge was sold to Chrysler but trading relations with the Australian Dodge dealers remained the same.
The 1920's saw a dramatic expansion of the motor industry in Australia driven by falling real prices for cars as a result of mass production and easier credit. In the decade after 1918 the price of a Chevrolet nearly halved, In 1928 80,000 vehicles were sold in Australia. Neunhoffer was an economic conservative and predicted ruin. He imposed restrictions on the business that must have made trading difficult. Reduce the overdraft, expansion only to be funded by profits, no selling less than list price, new cars to be sold for cash only, no hire purchase or credit sales. The company actually expanded and assembled cars in Normanby St and Ingles St. Port Melbourne. L. R. Buxton was appointed a director.
 
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The Reso Tour.
In 1927 the company and its products were involved in an inland expedition. The state railways of Victoria and South Australia sponsored a "Reso Tour" to central Australia to make a scientific and industrial survey of the area to assist in development of the region. The tour was over 2000 miles from Port Augusta through Coober Pedy, Stuart Ranges, Alice Springs, to Central Mount Stuart and Barrow Creek. It was over country with no roads and the Overland Telegraph the only guide.
The organiser of the tour decided on the Dodge as the most suitable vehicle and Canada Cycle and Motor were approached. They provided a 30 cwt truck, 3 utilities and 26 Dodge cars. The company provided drivers and maintenance crews. There were no mishaps or breakdowns except for a few punctures. It was a great advertisement both for Dodge and CCM.
 
AJS
The company was keen to diversify their range and in 1928 took up the agency for the AJS Nine. Some British cars were too light for Australian conditions. The official history simply says this did not to prove be a successful relationship and the agency was relinquished.
The Great Depression
In 1929 Neunhoffer's fears of an economic collapse were realised and the country entered the Great Depression. Finance was impossible to obtain, factories closed and a third of Australians were unemployed. The country fell into poverty and hardship. The motor industry was hit very hard. In 1928 nearly 80,000 vehicles had been sold. This collapsed to just over 11,000 in 1930. It stayed close to this level until 1933 and slowly recovered to only 35,000 before the war. It was not until 1948 that the Australian sales figure for 1928 was bettered.
From the History: "If there was one source from which Canada Cycle drew its character and personality it was realization that a loyal well trained staff were priceless. Those who lived through the depression know how bad it was and how it got worse before it got better. They will recall the almost total stagnation, the thousands of businesses, large and small that closed down because they could not sell to anyone. "
The company tried to avoid mass dismissals but wages and hours were cut. They tried to keep on men with families. Their response was considered fair, relationships with the workers were good with no industrial disputes and some employees worked for the company for up to thirty years.
The company had no overdraft, money in the bank, no hire purchase liabilities or large stocks of second hand cars. Even so the company made a substantial loss in 1931/32.
 
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In 1932 the Ottawa Conference imposed an additional 10% duty on non-British Empire products. This was in place until 1938 and made the selling of American cars more difficult but there was a strong preference for American cars in Australia.
Charles Neunhoffer would travel to America each year to deal directly with the suppliers. In 1934 he died in Chicago. This was a major blow to CCM.
L.R Buxton became Chairman, G.L. Scott Managing Director and J.C. Scott co-director.
In 1935 Chrysler Dodge Distributors was formed as a bulk purchasing operation for the Australian dealers.
In 1938 the company began to expand again and a modern spare parts and service station was built in Queens St.
The Second World War
During the Second World War CCM showed how important the motor industry was to national defence.
At the outbreak staff numbers were depleted as men enlisted, new cars sales virtually ceased and petrol rationing was introduced.
After the Pacific War began a major American army used Melbourne as a base for operations in the South Pacific. CCM made the second floor of the Queen Street building available to the U.S. Army as a bulk spare parts depot. CCM undertook reconditioning of vehicles that had been damaged during the bombing of Darwin. The workshop and staff were made available for the maintenance, repair and overhaul of American Army vehicles.
The company won contracts from the Australian army, navy and air force for vehicle parts. They were tropic proofed and packed for use in tropical zones. This was a major operation with thousands of parts. At the request of the Australian Army the electrical department designed and produced switchboards for testing all the electrical equipment on the General Grant Tank. They designed gas produce blowers and air raid siren relays for the police, ambulance and fire brigade. At the request of the Gun Ammunition Board it designed and produced fuel pumps that used alcohol instead of petrol. This was known as a Canamo pump and a one was known as a Toronto fuel pump. A head light focusing machine known as "True Focus" was designed and produced as standard equipment for Australian Army workshops.
 
I worked at what was known as the old Canada Cycle and Motor Company factory in Heidelberg for a short while some time before the end of Renault and Peugeot assembly in Australia. Not fun working under French management...............
 
After the war the company began to absorb its staff as they were released from war service. The electrical department was moved into the second floor in the Queens Street building. CCM set up one of the best equipped electrical departments in Australia. This claim was supported by the Apprenticeship Commission of Victoria and C.B. Thomas, Chrysler Vice President who after an inspection declared it one of the best in the world. The credit for the electrical department went to shop manager Gil McGlashan. He designed machines for testing electrical connections and CCM patented several of his inventions. One machine was a device for checking shock absorbers.
The period 1946 to 1948 saw a gradual relaxation of controls, rationing and restrictions. With he end of the war came the termination of the Lend Lease Agreement with America under which Australia was supplied with American vehicles and equipment.
There was an extreme demand for motor vehicles in Australia after the war. A quarter of the cars on the road had been built before 1928. People wanted American cars but Australia had a shortage of dollars to pay for imports. This was called the dollar crisis. Britain was exporting cars to America to earn dollars and could not supply Australia's needs. CCM found it increasingly difficult to source American cars. Waiting times were long, sometimes two or three years. New American cars were resold at up to twice the list price. Buyers had to sign an agreement not to resell for a specified time. These contracts were upheld by a court ruling.
It was possible to source American vehicles from France where Australian pounds were a hard currency. In 1948 CCM sent parts manager Alec Chapman to France to tender for surplus Dodge trucks that had been supplied to the French Army. He was also instructed to make exhaustive enquiries for a light small car, from either England or the continent to supplement the range of Dodge cars.
Chapman returned to Australia with reports of the available cars. He was very impressed by the Peugeot 203. It had been displayed to a selected audience in 1947 and released in late 1948. It is not recorded who he met with in France but must have had access to pre-production models. It was described as a big little car. He thought it would be well suited to Australia. Both France and Australia were keen for re-starting the pre- war wool trade that could be paid for by imports of French cars.
In early 1949 after fifty years of dealing with North American manufacturers Chapman was sent back to France to finalize the import of the first French cars. Three pre-release cars arrived in June 1949 and the first shipment arrived late December 1949. CCM negotiated an agency for Victoria and the Riverina. NSW Dodge dealer Harden & Johnston negotiated an agency for NSW later in the year.
 
In 1950 the company purchased the properties occupied by its new car department and workshop in LaTrobe St, buildings that had been under lease since 1914.
In 1951 G.L. Scott, Managing Director since 1914, retired due to poor health. He had been associated with the business for over fifty years. For his energy, ability, zeal and loyalty the company was indebted to him and fully conscious of the great role he played. A.C. Chapman was appointed Managing Director.
In 1951 the Chrysler Corporation realized that to compete profitably in the Australian market it had to produce a higher proportion of its cars here. Chrysler Australia was formed and absorbed the Australian Distributors Bulk Purchasing Company and with headquarters in Adelaide soon developed into more than just a component manufacturer.
The Peugeot car was an unqualified success from the very first year and definitely exceeded the most optimistic expectations. In the marathon Round Australia Redex Reliability Trial - the toughest and roughest test for vehicles - the 203 was outright winner in 1953 and second by a small margin in 1954.
The amazing popularity of the Peugeot was exemplified by satisfied owners organizing the Peugeot Car Club in 1954. The club sought and was readily granted the patronage of the company but its main objective was the gathering together of Peugeot owners for social enjoyment and the exchange of information about their cars. Club meetings were held at CCM in LaTrobe Street. The founder of the club, Tas Smith, joined the CCM sales staff and was later sales manager.
 
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CCM remains in business today in Canada, having been sold on several times. My first bicycle in 1964 was a CCM. In Canada CCM was said to stand for "Crummy Crate Makers".
 
In the second photo - Leonard Buxton is shaking the hand. Alec Chapman is third from the right. The man in the bow tie is Sun writer Keith Dunstan. Man with tie on the left looking at the camera is probably Tas Smith. Photo taken in the LaTrobe St showroom.
 
Bill Patterson the driver shaking Buxton's hand. Probably Harry Russell the navigator in between them.
 
L. R. Buxton and Dewey Smith, Studebaker export manager, at CCM 1958/59.
 

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These photos are a snapshot of when both the motor trade and Peugeot were at their peak in Australia. A big staff to handle service and parts, clearly apprentices and experienced men, the days when people bought genuine spare parts and went to dealers for competent service. This is only the LaTrobe St staff and doesn't include Port Melbourne and assembly works staff.
 
The official history of CCM stops in 1955 when it was written. Thomas Batten has added a brief summary of the events of the next decade but without precise dates. The next decade was very successful with the introduction of the 403. At some point they lost the Dodge dealership as Chrysler took over Australian marketing. Possibly 1955.
CCM looked for another American car dealership and in 1958/59 negotiated an Australian agency including local assembly with Studebaker. CCM had a close relationship with Studebaker with senior Studebaker executives visiting Melbourne and L.R. Buxton and his wife visiting Studebaker as guest of the company. There are photos of Harm Arnold, Dick Hutchinson and Dewey Smith with Alec Chapman in Melbourne. Relations between CCM and Studebaker were much closer than with Peugeot which never sent senior executives to support the Australian operation. The Studebaker operation was extremely successful and surpassed the Peugeot business. Studebaker had created a niche market by marketing police cruisers and Victoria Police adopted the V8 Lark as their highway patrol car. In 1961 national Studebaker sales were 600 vehicles but in 1963 this had risen to 1100, contrasting with falling Peugeot sales. After the 404 release was bungled Peugeot sales fell to 632 units in 1964.
Unfortunately little is mentioned of local assembly operations and we are left with no answers to a number of questions. Batten's account becomes confused with the assembly plants which is no wonder because they were complex. A summary of Australian assembly operations began with import restrictions introduced at the end of 1951. All Continental importers except Skoda and Mercedes moved to set up local assembly. Harden & Johnston arranged for the 203 to be assembled by Chrysler in Adelaide in 1952 to 1954 but there is no indication if CCM took any of those cars. CCM bought land in Racecourse Road Flemington for an assembly plant but it was never built. Instead the 203 was assembled in their small existing plant in Tottenham in 1953. At an undefined date assembly was moved to a CCM assembly plant in Keys Road Moorabbin. The Studebaker was assembled there.
Northern Star engineering was assembling Simca in Macauley St North Melbourne. In late 1955 the now Northern Engineering built a modern assembly plant in Dougherty Rd West Heidelberg to build 3000 Simcas a year. In 1958 Chrysler bought Simca and assembly was moved to Adelaide in 1959. A new company, Continental and General Distributors was formed to assemble Peugeot and Studebaker at Heidelberg in August 1959. C&G had been the used car side of Northern Engineering. The CCM operation at Moorabbin was sold to C&G and the last 403's assembled there wore a C&G plate. The financial details are not public but we can assume CCM was not a loser in the changes.
The greatest blow to CCM was the premature death of Alec Chapman in October 1964. The company did not recover from the blow. Thomas Batten adds this: " The company found itself with very old plant, old directors and old long term employees. An offer for the business was made by Continental & General and this was accepted."
C&G closed Canada Cycle and Motor Co in 1965. Sales manager Tas Smith became manager of the assembly plant at West Heidelberg. The closure of Studebaker in 1966 threatened the viability of that plant and it was sold to Renault.
 
A footnote - Charles Neunhoffer left an estate of 114,000 thousand pounds in 1934- around 13 million dollars converted to todays money. Quite a fortune to have been made selling cars over twenty years, most made during the boom years of the 1920's. Left nothing to his wife, all to his daughter.
 
Summing up, Canada Cycle and Motor Company was an extremely successful firm that made a major contribution to putting Australia on wheels and training a skilled workforce. They successfully marketed Dodge, Studebaker and Peugeot. The firm establishment of Peugeot on the Australian market was made possible by their well resourced, competent operation. It was a firm run by experienced car men with an operating culture of training and quality workmanship. The independent Melbourne operation only lasted for 51 years and failed to pass to a new generation but left a legacy long admired.

This is based on an anonymous history of the company written in 1955, edited by Thomas Batten with later additions. I have added some material. There are very few detailed studies of Australian car firms and this is the only history of CCM I can find.
 
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