Golden Age

It may be 50 years since BL was formed but it’s also 30 years since the firm was returned to the private sector for an all-too-brief period of success.

- Paul Wager

Elsewhere in this issue, we mark the halfcentury since the formal incorporation of British Leyland Motor Corporation Limited and doubtless there will be plenty more material on the subject across the motoring press this year.

The year 2018 however, sees another anniversary which is perhaps equally significant: in March it will be 30 years since the company was sold on to British Aerospace by its majority shareholder, the UK government which had seen an opportunity to finally get out of the volume car making business.

The government had taken a majority shareholding back in 1976, since which time the struggling car maker had cost the taxpayer £2.9bn in losses. No wonder then that it was prepared to create serious incentives to ensure the attractiveness of the operation to potential new owners: a cash injection of £800 million was made into the company, while the government was paid only £150 million for its holding.

Interestingly, during the parliamentary debate following the announcement, Kenneth Clarke (then minister of Trade and Industry) admitted when questioned that no other car maker had expressed interest in acquiring the company. ‘Expressions of interest’ had apparently been received but not a single formal offer.

When pressed in the Commons though, it appeared that although other car makers (popularly thought to include Ford) were interested, the government chose to agree to a period of negotiation exclusively with British Aerospace.