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BL's goal is still privatisation

22 May 1986

THE GUARDIAN
BL's GOAL IS STILL PRIVATISATION
By David Simpson, Business Correspondent

Privatisation is to remain the ultimate goal for BL, the state motor corporations new chairman, Mr Graham Day, told MP's yesterday, but any disposal of the group would not be at the expense of good industrial or financial practice. Mr Day, inheriting the chairmanship of BL in the wake of the Ford and General Motors fiascos, made no bones about the severity of the task facing him in correcting losses at Leyland Trucks in particular, which he said could involve closures, mergers or some of each. He also told the Commons Trade and Industry Select Committee of plans to shake up the BL board.

Both his executive directors, Mr Ray Horrocks who runs Austin Rover and Mr David Andrews, currently on extended secondment after his abortive management buy-out for Land Rover, could be leaving soon, Mr Day intimated. In addition, he was looking for new non-executive directors.

The immediate priority for BL, said Mr Day, was the financial health of the business. Mr Day, who acquired a reputation for being hard headed in his previous role at British Shipbuilders, stated his readiness to talk to any other truck or motor manufacturer about rationalisations within the industry, but assured the MP's that he was not currently involved in merger negotiation other than over the impending sale of Leyland Bus.

Mr Day's repeated return to the over capacity in the European motor industry during his questioning by the MP's raises the possibility of further rationalisations or cutbacks at the Austin Rover volume car business.

BL executives yesterday told the MP's that despite improved overseas sales, Austin Rover's financial position had deteriored in the first quarter because of its failure to hold or improve further the 18 per cent domestic market share established over the past two years.

More news from the archive

Mon, 31 Mar 1986
NEW YORK TIMES REUTERS The state-owned car company BL P.L.C., formerly British Leyland, said that it was pursuing two offers for...
Wed, 02 Apr 1986
DAILY EXPRESS By David Benson Motoring Editor British Leyland lost £39-5 million last year , little comfort to the government determined...
Wed, 09 Apr 1986
DAILY EXPRESS BL RUMOURS HIT CAR SALES Rumours over British Leyland's future cost the Austin Rover car division almost £240 million...
Thu, 10 Apr 1986
THE GUARDIAN GOVERNMENT SLAMMED BY AUSTIN ROVER CHIEF By Michael Smith, industrial editor The Governments handling of the BL break...
Fri, 25 Apr 1986
NEW YORK TIMES AP Published: April 25, 1986 The state-owned auto maker BL P.L.C. has shelved plans to sell its profitable Land-Rover,...
Wed, 11 Jun 1986
THE GUARDIAN LEYLAND TRUCKS BOSS RESIGNS FROM BL By David Simpson, Business Correspondent The chief executive of Leyland Vehicles,...
Wed, 18 Jun 1986
Cabinet approve BL's £1.8bn investment plans By Julian Haviland, Political Editor The Government yesterday announced broad approval...
Sun, 06 Jul 1986
TORONTO STAR Graham Day, coming to British Leyland after many successes, was announced by a major newspaper as a 'nasty surprise'...
Tue, 08 Jul 1986
THE GUARDIAN BL CHANGES ITS NAME TO ROVER By David Simpson, Business Correspondent BL yesterday officially changed its name to...
Thu, 10 Jul 1986
THE GUARDIAN Austin Rover chairman Harold Musgrove on the new Rover 800. "I cannot over-emphasise just how important this car is,...
 

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