Rolls-Royce sale?
Page 7
If you've noticed an error in this article please click here to report it so we can fix it.
ROLLS-ROYCE and Perkins Eng ownership, as Vickers is on the with Massey Ferguson.
Vickers has been known to be interested in selling the RollsRoyce Eagle diesel engine division, based at the former Sentinel works at Shrewsbury, for some time, but the deal with Massey Ferguson is a surprise.
Canadian-owned Massey's finances have been troubled for several years, and although its performance has improved, it is unlikely to return to profitability this year.
But a deal with Vickers would give it an engine range to complement rather than compete with its own Perkins subsidiary based at Peterborough, which builds engines from around 30 to 300hp.
For heavy commercial application, Rolls-Royce builds only one range of in-line six-cylinder 12litre diesels from 180 to 340bhp, but a more significant aspect of its activity is the supply of in-line petrol and V-formation diesel engines for military vehicles.
It is reluctant to quote volumes of engine production at Shewsbury, but claims a 37 per cent share of the United Kingdom over 28-tonne gvw market for proprietary engined lorries for September to November this year. By contrast, Cummins claims 42 per cent. Perkins produced 140,000 diesels in Britain last year, and worldwide production took this to 373,000.
One matter to be resolved if the deal is concluded is the use of the Rolls-Royce name. It is the property of the Government, which remains owner of the Rolls-Royce aero engine company. Vickers owns Rolls-Royce Motors, with which it merged in 1980, and which makes luxury cars at Derby.