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Reliant reorganisation
Page 19
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• Reliant Motor has started to reorganise its affairs and is considering a rights issue later this year, but production of the Rialto 2 car-derived van, and the Fox pickup is unlikely to be affected.
Reliant admits that "there was a problem in the past. . . with the company being funded largely off the back of an overdraft." It now aims to reduce its level of borrowings, and possibly diversify its engineering and plastics departments, and "take our eggs out of the one basket". Reliant has sold the rights to manufacture the Scimitar GTE and GTC and has sold its Two Gates production site to achieve this aim. Demand for the Reliant Fox tailed off for a while in 1987, but the company has received enquiries from overseas customers in developing countries.