GM in talks about Leyland's future
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THE PROSPECT of a fundamental restructure of the British commercial vehicle manufacturing industry has been raised by news that exploratory discussions have taken place between General Motors and BL over the future of Leyland Trucks.
A statement from both Leyland Trucks and Bedford Commercial Vehicles (GM's British truck division) said only: "Both GM and BL talk to many companies with reference to their business activities world-wide.
"In line with this, there have been exploratory discussions between the companies." No bid has been made yet for Leyland, and nothing is being said about the level at which the discussions took place, nor where they took place, what detail was discussed, when they took place, or whether the discussions will be continued.
While this is designed to dampen a motor industry rumour last week about a £360m GM hid for Leyland Trucks, a GM bid could fit into its plans to expand its world-wide commercial vehicle business.
It wants to take a controlling interest in Enasa, the Spanish manufacturer which also owns Seddon Atkinson, and it has had abortive discussions about buying MAN's truck and bus business.
Acquisition of Leyland, which has a relatively new model range, a modern assembly plant in Lancashire and a rising share of the home market, would enhance its position in Britain, Bedford, by contrast, has an ageing truck range, older factory premises in the Home Counties where land values are higher, and a falling share of the home market.
Both companies are losing money.