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BL chief to ask for £325m state backing

21 October 1980

By Clifford Webb Midland Industrial Correspondent

Sir Michael Edwardes, BL chairman, will be going to the Government next week for a £325m vote of confidence in the state-owned motor group. Riding on the success of the launch of the Metro, he is seeking £175m to put a potentially more profitable medium saloon codenamed LC10 into production in 1981/83.

A further £150m is needed to finance a new range of Jaguar saloons, to continue the modernization of Leyland Vehicles truck range and to cover heavy redundancy payments. A BL spokesman said yesterday: "Sir Michael is putting the final touches to the 1981 Business Plan which he will be submitting to the Government shortly, probably early next week."

Sir Michael and other BL executives are jubilant at the reaction of Mrs Thatcher and her ministers to the public interest being shown in Metro. The Prime Minister went out of her way in her Motor Show speech last week to praise him for outstanding leadership and even drove a Metro herself to perform the official opening. Sir Michael has said that the Metro is the "litmus test" of everything he has done since joining BL three years ago and has made it clear that government backing for LC10 rests squarely on Metro's success.

Last night BL estimated that long-term orders for Metro, some of them for delivery five years ahead, have now topped the £100m mark. More good news for BL is that unofficial figures for new car registrations in the first two weeks of October give it a 24 per cent market share compared with 19 per cent last month. BL's "Metro mania", as one Ford executive described it at the Motor Show yesterday, is somewhat dampened by the closure of MGs sportscar factory at Abingdon on Friday.

More news from the archive

Wed, 15 Oct 1980
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Thu, 16 Oct 1980
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Fri, 17 Oct 1980
By Donald Macintyre Labour Reporter British Leyland last night held firm in its dispute with four white-collar unions after a thinly...
Sat, 18 Oct 1980
HOME NEWS By David Felton Labour Reporter Mass meetings of white-collar workers at several BL plants yesterday voted to support the...
Sat, 18 Oct 1980
By Clifford Webb Midlands Industrial Correspondent Trade unions representing 73,000 BL car workers yesterday rejected a final offer...
Thu, 23 Oct 1980
The last MGB is produced today at Abingdon
Fri, 24 Oct 1980
BL selling site as factory units By Clifford Webb Midland Industrial Correspondent BL Cars, which has more than £30m worth of closed...
Tue, 28 Oct 1980
By Peter Hill Industrial Editor Requests for further substantial Government financial aid were submitted to Sir Keith Joseph the Secretary...
Wed, 29 Oct 1980
By Clifford Webb The demand for BL's Metro car is so great that Sir Michael Edwardes, the BL chairman, now proposes to use the whole...
Thu, 30 Oct 1980
By David Felton and Clifford Webb On the eve of meetings of manual workers at BL plants to vote on the company's 6.8 per cent wage...
 

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