tyland: all for sale
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E LONG EXPECTED of Leyland Trucks to eral Motors was elevated to the political stage this .k when Trade and Indus
Secretary Paul Channon firmed that talks between and GM are at an "adced stage".
lews of the likely sale first Ke last August, but it only ime a political issue on nday when Shadow Chanit. Roy Hattersley's inv en tion compelled mum to make a state is now clear that all of Land Rover-Leyland up is up for sale, and that wants not only Leyland icks, but the Leyland ts/Multipart business, id Rover, and Freight
'Cr.
ut it does not want Ley. Bus, the loss-making and .declining coach and bus Icier. Following an apich from the Laird Group, Department of Trade and istry is now discussing its to Laird and a merger a Laird's -Metro-Cammell onann business.
.nd the Government is considering selling Austin 'er, the car (and light van) sion of BL, to another erica!) giant, Ford. But a Ford and BL insist that e talks are "exploratory". n his announcement, innon said there is huge • r-capacity in the truck manutlieturing industry, and the acquisition of Leyland would give GM a chance to rationalise operations.
Channon told MPs that over 2 billion has been pumped into BE in recent Years and added: "What we need to do is to get an industry which will be able to function successfully in the foreseeable future."
1.Ie insisted that Leyland Trucks' employees should draw comfort from realising that their future was being secured in a truck industry with a better future.
And he assured MI's that the deal will only go ahead with firm assurances on key factors like local content, significant share of local content, continuing research and development. Land Rover retaining its British identity. most products sold in this country by the merged group being made here, and a fair share of the GM Worldwide Truck and Bus Group investment being in Britain.
The planned sale was dismissed as "appallingby Shadow Trade and Industry Secretary John Smith, who said: "Is nothing not for sale? The job lot disposal of Land Royer and Range Rover will be seen abroad as a dreadful and shameful British retreat."
He said GM was trying to buy market share and get its hands on modern facilities at a cost of 020 million from the public purse, but Channon said the BL board has approved the talks "with the aim of creating an internationally competitive UK commercial vehicle industry and long-term prospects for the constituent BL companies".
The Bedford truck plant at Dunstable and Freight Rover's Birmingham van plant are thought to be the most likely victims of a merger.
The sale of Leyland Bus would give Laird its biggest British rival for bus and railbus business, and MCW director and general manager Peter Steadman indicated that deal will go through if the price is right.
"We've been talking to BL and the DTI about rationalising production to meet likely demand. We're not quite sure what form the rationalisation would take until we've done our sums."
The Leyland Bus plant at Workington will he one of the biggest assets to Laird. Doubts must hang over one or all of the chassis plant at Leyl a n d , Eastern Coach Works at Lowestoft and MCW's Washwood Heath plant.
• The news of the planned mergers has fuelled speculation that Bedford and lkarus of Ihingary could he about to conclude a deal resulting in Bedford importing Ikarus bus bodies into Britain tbr sale in both Britain and the EEC.
Bedford already has working relationships in Hungary and has been supplying trucks to Budapest's municipal fleet.
In exchange it has been supplied with Hungarian Raba axles.