Leyland cash freeze ERF: profit up
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turnover down
NEWS OF a capital expenditure freeze at Leyland, pending the results of a top management review of truck operations, has prompted further pessimistic speculation about the company's future and in particular about the plan for Leyland to build the new Cummins B Series engines at Bathgate.
But a Cummins spokesman asserted last week that as far as his company was concerned, the Family One project (CM September 18, 1982 and November 5, 1983) was going ahead as planned.
Leyland confirmed that Les Wharton, managing director of Leyland Trucks, had told the company's 16,000 UK employees of the review and spending freeze in a staff newsletter. This, it seems, was intended to make them aware exactly how serious Leyland's position is and prepare them for possible further job losses.
In the summer last year Mr Wharton said Leyland Trucks was "literally fighting for survival" and a recently published Economist Intelligence Unit report forecasts that Leyland Vehicles' trading losses for 1983 could be even worse than the £59m lost in 1982.
"Unless there is a speedy recovery in its fortunes, there could well develop a growing question mark over the long term future of Leyland Vehicles" says the report.
No date has been announced for the completion of the current management review at Leyland but it seems likely that it will be completed within the next few weeks. Jimmy Swan, joint shop steward committee chairman at Bathgate, is reported to have called for a meeting with George Younger, Secretary of State for Scotland to discuss the implications of the present block on capital expenditure.