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Good for Vickers and R-R
Page 25
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THE PROPOSED merger between Rolls-Royce Motors and the engineering group Vickers will give the diesel engine division of RR a much needed injection of work, writes STEVE GRAY.
At the moment, it is just breaking even on its sales and has insufficient resources to install new equipment and plant.
During the first five months of this year, Rolls-Royce increased its share in both the over 28 ton tractive unit market and over 28 ton rigid market, With sales in the 28 ton plus tractive unit sector reaching 9.4 per cent of the total and rigids of the same category at 11.2 per cent, it has gained sales at Gardner's expense.
Cummins, the other major contender in this country's built vehicle field, has also increased sales in both segments, again at Gardner's expense.
But the takeover will not be a one way affair. Vickers will gain experienced motor industry management and secure supplies of engines for its revitalised Chieftain tank.
The true reason for the takeover is probably the sale by Vickers of its shipbuilding, photocopying, and reproduction interests which has released a substantial amount of money.