Bedford: the losses go on
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• Despite increasing its sales volumes by 23 per cent since the beginning of the year, General Motors' troubled Bedford Commercial Vehicles division is still operating at a loss.
In an exclusive interview with CM, newly appointed general manager Paul Tosch described Bedford's performance over the first quarter of 1986 as "very encouraging" and claims its share of the total UK commercial vehicle market — including light vans — has increased from 12.2 to 15.3 per cent.
However, in spite of earlier predictions that the company might get back into the black this year, Tosch confirmed that 1985 was a "loss situation, and the prospects for breaking even in 1986 do not look promising".
The bulk of Bedford's increased UK sales have been won at the lighter end of the market, particularly by the Astra van and Midi range. Bedford has also seen "a moderate improvement" in its truck exports, notably in the Gulf States and Nigeria. The company's current over-capacity "continues to be a matter of concern", says Tosch. "There are no easy solutions — we are looking at several options."
With its Luton van plant now producing new Rascal micro van models ensuring extra throughput, and Vauxhall's Ellesmere Port factory producing Opel Kadett (Astra) vans, Bedford's biggest headache is its Dunstable truck plant.
Two years ago production capacity was cut from 50,000 to 30,000 vehicles per year.
Last year it only produced around 15,000 trucks, following its decline in UK heavy trucks from 13.1 pc in 1984 to 10.7 per cent in 1985.
Following the collapse of the proposed Leyland Trucks/Land Rover takeover bid, Tosch confirmed that GM is talking with other European manufacturers and although an acquisition has now been ruled out, GM is still having "exploratory discussions with Enasa on a variety of commercial ventures" One possible outcome could be a distribution deal for Midi vans in Spain.