Rolls-Royce To Collaborate With B.M.C.

From Our Correspondent
BIRMINGHAM, DEC. 31

Rolls-Royce and the British Motor Corporation are examining the possibility of technical collaboration, a statement by both concerns announced tonight. The two companies consider that in view of the economies to be gained by large-scale manufacturing and the ever-increasing importance of quality in the world's car markets, there is a prima facia case for such an investigation. A further statement will be made at the conclusion of this investigation which is likely to extend over several months. Asked if there was a possibility of a merger between Rolls-Rovce's car side and B.M.C., Lord Kindersley, chairman of Rolls-Royce, said that the talks were only at the stage of exploratory discussions and it was far too early to say.

" Discussions will be held to examine the problems of both teams", he said.

"It will take some months before we can see clearly what we are to do. B.M.C. and Rolls-Royce are two leading British manufacturers of motor cars, one making large quantities and the other smaller quantities at the high priced end. Both have fundamental problems in common and the combined engineering skills of the two can be put to the best possible purpose. I am looking for a partnership between the two concerns to work out problems in the best way possible."