Paccar and Daf in talk with Leyland Trucks
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Rover Group will review Austin's future
In a statement on the progress of its corporate plan, the Rover Group says that it is considering a number of options for Leyland Trucks "in the light of continuing depressed demand, particularly in overseas markets, and severe overcapacity in Europe."
The plan includes discussions with Daf and Paccar but the corporate review will also be considering the future of Austin Rover, which includes Maestro and Metro commercial vehicles.
Austin Rover does not expect a statement on its future before the new year, although Paul Channon MP says that he expects "Mr Day's plan to set out a positive course for the continuation of the company as a major producer, and leading exporter of cars made in Britain." • Rover Group boss Graham Day is holding talks with Dal and Paccar about the future of Leyland Trucks, trade and industry secretary Paul Channon reveals this week.
Channon told MPs that Daf and the Rover Group are now discussing the potential benefits of a more fundamental collaboration in the truck and van businesses than the limited agreement announced earlier this year on the marketing of Roadrunner trucks and Sherpa vans in Europe.
Paccar, Foden's American parent company, is considering the basis on which it might want to bid for Leyland Trucks. Both sets of talks are at an early stage, says Channon, who supports Day in pursuing them.
The minister emphasises that the negotiations would involve restructuring of Leyland Trucks. The Government's objective is to achieve a secure future for the production of Leyland Trucks against a backdrop of continuing depressed demand and severe overcapacity in Europe, he insists.
"It must be recognised that any option for the company, whether related to collaboration, merger, sale, or indeed, continuation under present ownership will involve restructuring."
Shadow trade and industry secretary John Smith warns that any sale of Leyland to Paccar would inevitably lead to extensive job losses.
The talks with Oaf are "truly desirable" if they involve real collaboration between equal and independent companies, he says.
Given that General Motors appears to be going ahead
with its decision to phase out :ruck manufacturing in Britain, my takeover by Paccar will mean the only volume truck -naker in Britain will cease to De British owned.
"Why are you encouraging :hese talks which will in:vitably lead to extensive 7ationalisation, to job losses ind the loss of British mnership and control of a cru:la] part of our engineering economy?" asked Smith.
Liberal spokesman Paddy kshdown also says the Daf opion is preferable because it ilready has an established network of retail outlets.
Channon insisted to M Ps :hat whatever solution finally ..:oines forward it will involve -estructuring at Leyland.
He also warns that a mer4er or takeover of Leyland Frucks should not be ruled out is an option.