BL chairman rejects shareholders’ pleas

Press, 17 June 1982, Page 24

BL chairman rejects shareholders’ pleas

By

PETER GREENSLADE

Rejecting pleas from shareholders — and some of them pack quite a bit of

clout - the man who has been at British Leyland's helm for four years and a half. Sir Michael Edwardes. told them he wants out and he will be going al the end of the vear.

In its latest financial year, BL finished up posting a t 244.6 million loss on a turnover of 12869 million. In other words. BL lost L 49.3 million less than it did in the previous year. That is not what could be called a good result, but looked at another way it does seem to indicate that Sir Michael and his troops have done a pretty fair job.

Although a battered and bewildered BL is attempting to pull itself up by its boot laces against a background that Str Michael has described as “a most traumatic

situation in the Western motor industry," he is optimistic about its'future because cash flow is under control, productivity increased by 23 per cent in the first quarter of this year, vehicle sales for the first three months are 6 per cent up on what they were during the same period last year and exports have risen 23 per cent in value compared with those of the first three months last year. But if Sir Michael sounded an optimistic note, the news from Jaguar, a prestigious arm of BL. probably sounded a bit perplexing, it not ominous. particularly to those who had worshipped so long at the shrine of. the big and fast cat. The news was that a tur-

bocharged diesel-engined XJ6 will hit the streets before this year's end to boost North American sales, which are running at record levels.

If the news that Jaguar was going diesel - albeit turbocharged - was bad enough, worse was to follow. This engine will not be a Jaguar-designed-and-built diesel version of the allaluminium AJ6 petrol engine which will go into the XJ4O. which is the Jaguar that will replace the XJ6 when the lime comes. Instead the diesel will be bought in from Stabilimenti Meccanici VM SpA. the Italian manufacturer who has already signed up to supply turbocharged diesel power, for BL's Rover SDL What is more, there is every indication that the Italian firm is about to sign a contract with BL to supply its 3.6 litre, six-cylinder diesel engine to go into the Range Rover.

Could it be that Sir Michael wants out before the county set starts choking over its gin and tonic?