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Rootes transplant

8th May 1970, Page 26
8th May 1970
Page 26
Page 26, 8th May 1970 — Rootes transplant
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• On May 29, at an extraordinary general .meeting, shareholders of Rootes Motors Ltd are to be asked to approve a change of name for the company—to Chrysler United Kingdom Ltd. It is also proposed to change Rootes Motors Scotland Ltd to Chrysler Linwood Ltd and Rootes Motors Ireland Ltd to Chrysler Ireland Ltd.

Announcing these moves last Friday, Rootes stressed that there is to be no change in management, the organization, the policies of the company or conditions of employment. The brand names of vehicles—Dodge, Commer, Karrier and the various car marques—will remain the same.

Rootes is also to undertake a rights issue underwritten by Chrysler to raise £10.9m of new capital. In addition a £5m loan, for five years, guaranteed by Chrysler, has been arranged.

Rootes was founded in 1917 as a car sales company by the late Lord Rootes, who was soon afterwards joined by his brother Sir Reginald Rootes. With the acquisition in 1929 of Hillman, Humber and Commer, the company entered motor manufacture.

The Chrysler Corporation was founded in 1925 and first purchased an interest in Rootes in 1964: it now owns 73 per cent of Rootes equity capital and is the third largest motor vehicle manufacturer in the world.


People: Reginald Rootes

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