ENGINES FOE 'PLANES

Evening Post, Volume CXXII, Issue 99, 23 October 1936, Page 9

ENGINES FOE 'PLANES

COMPANY'S WITHDRAWAL

FROM SCHEME

STATEMENT TO BE MADE

LONDON, October 21,

Promising a statement at the earliest opportunity as to why his company, Wolseley Motors, withdrew from the Air Ministry's, scheme for a "shadow" aero-engine industry, Lord Nuffteld said: "The question'is too important for me to blurt out something without due consideration. Only one side so far has been heard. I have my side."

The Air Ministry says it is surprised by Wolseley Motors' withdrawal. Under the "shadow" scheme there would always be an incentive to efficiency. The general arrangement was for the firms to flic temporarily a basic price for the first batches of engines, and then, if it were found possible to manufacture them more cheaply, to share in the savings equally with the taxpayer. ,

The Wolseley Motor Company, which Lord Nuffleld controls, originally participated in the scheme, but withdrew, a London message stated on October 20. Wolseley Motors are closing their aero-engine factory at Birmingham and refusing a substantial order for Scipio engines which was offered apart from the "shadow" scheme. The "News Chronicle" stated that it was understood that Wolseley Motors withdrew owing to Lord Nufneld disagreeing with the working of the Government's contract system. [ He was willing to agree to the .contract price, but would not allow Government officials to supervise production, and turned down the order, which was for 300 Scorpion engines. The Singer Motor Company also withdrew. '