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FODEN'S VIEW OF intr's END
Page 26
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With regard to the various comments made in the press about the virtual closure of th ERF assembly operation at Middlewich. I would like to ma the following observations.
For 600 ERF workers and many more in the component industry that supplied ERF the recognition of the change in climate will not comfort them they look for new jobs in a depressed economy.
Why has this happened? In 1996 the Board of ERF (of which I was executive chairman) decided that to survive in our industry we had to be stronger financially and after due consideration we agreed to merge with Western Star, a Canadian truck manufacturer—a company similar to ERF. Western Star was controlled by Terry Peabody, who had 42% of the shares.
Within two years he sold ERF to MAN of Germany for over £110m—a profit of £70m. At the same time he sold the rest of his Canadian truck operation to Freightliner in the USA, a subsidiary of Daimler Benz, again at a huge profit.
Within two years both companies experienced huge financial problems. The chairman of MAN reported tha :here were "massive financial irregularities at ERF which wer being investigated".
Having said all that, MAN, tc their credit, have treated ERF employees fairly. and hopefu6 ERF will continue to exist in some form or another.
In retrospect the deal with Western Star has proved to be a disaster for ERF and its workforce, although I am not ashamed of my contribution to ERF over 40 odd years.
However, I do sincerely regret the disappearance of vehicle manufacture in the region after nearly 70 years. EP Wen, Honorary life president of ERF, Sandbach, Cheshire.