Archive : Standards To Cut Staff And Costs

Standard-Triumph International are to make drastic cuts in staff and in “non-productive expenditure.”

Sir Henry Spurrier, chairman and managing director of Leyland Motors, Ltd., the parent concern, said yesterday that Mr Stanley Markland, newly- appointed managing director of Standard-Triumph, was to introduce immediate economy measures. These are designed greatly to reduce all overhead expenditure and generally to run the organization on lines similar to those of the parent company.

“The practical putting into effect of these necessary economies must result in a severe cutting down of numbers of executives and other staff employed, in addition to drastic reductions in day- to-day non-productive expenditure,”

Sir Henry’s statement said. “Concurrently, active work is proceeding on the development of new products, and we think it desirable to state categorically that it is the intention of the company to stay prominently in the motor car business. New models will be announced in due course and will become available as speedily as they can be. Finally, I would remind our friends of Leyland’s world-wide reputation for giving the highest quality and greatest value in all its products. It is our intention to maintain this standard throughout the entire group.”

The statement said it had been expected that conditions in the motor-car industry would improve rapidly in the spring of 1961.

“Unfortunately losses continued to be made during these months and it became clear … that it was essential to bring in drastic economies without delay in order to meet effectively the intense competition now prevalent in the motor- car industry throughout the world. “The Leyland board. recognizing its responsibility to Leyland shareholders, felt that this far-reaching exercise at S.T.I. should be borne entirely by the top Leyland executives and that they should have a clear field in which to put their plans into practical effect. ” This requirement was discussed with, and made clear to, all members of the original S.T.I. board, who readily appreciated Leyland’s point of view and subsequently tendered their resignations.”

Mr D. F. Fairbairn, Coventry district secretary of the Confederation of Shipbuilding and Engineering Unions, said last night: “We have held the view for some time that the company is overloaded with supervisory and executive staff. If Leylands intend effecting economies in that direction we would not have any objections.”

He said there would be ” violent obiection” if the company sought to reduce the wages of ordinary production men. The Leyland Motors plan for streamlining and integrating Standard’s and its subsidiaries includes, it is understood, switching the manufacture of the six- cylinder engine and other work from the Tipton foundry of Beans Industries Ltd. to Coventry. It is believed that other work from Leyland’s would then be transferred to Beans.

Our Motoring Correspondent writes :- The current range of cars made by Standard-Triumph comprises the Vanguard Six and Estate Car, the Herald range and the TR sports car. It is understood that a new TR model will be announced in the immediate future and that the rest of the range will remain unchanged for next year.

Keith Adams

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