Chrysler control for Rootes
Page 42
If you've noticed an error in this article please click here to report it so we can fix it.
WITH the injection of £20m. by the Chrysler " Corporation—and £3m. by the British government to back up its nomination of a "watchdog" member for the new board—control of Rootes will pass to the American concern. Approval of the move, but with strict safeguards, was given by the Minister of Technology this week.
The effect will be that Chrysler's present 45 per cent of the voting shares will be extended to give a majority shareholding when Chrysler takes up its rights in a new issue. The Government's £3m. stake will be the first major sharebuying move by the Industrial Reorganization Corporation. Nationalization was considered, but rejected.
The Chrysler move was precipitated by heavy Rootes losses The retirement of Sir Reginald Rootes, aged 70, as chairman of the Rootes board, and his succession by Lord Rootes, is the first step towards a reconstituted management.
For some time now, there has been a measure of integration on the commercial vehicle side in the UK. with Commer designs adopting Dodge nameplates and vice versa.