The Department of Trade and Industry confirmed yesterday that Austin Rover was required to give confidential commercial information to its principal rival, Ford, at the height of merger talks last year. But officials refused to comment on Labour allegations that the former Trade and Industry Secretary, Mr Leon Brittan, instructed Sir Austin Bide, the Austin Rover group chairman to hand over the market sensitive information , despite the opposition of the state car group ‘s senior management. Labour MPs told the Commons on Wednesday that during the merger talks Ford saw the production costs of every Austin Rover model.
They claimed that it allowed them to engage in a discount war in the showrooms last summer which gave the Ford Fiesta a 7.4 per cent market share compared with the Metro’s 4.5 per cent. Before the talks the Metro had outsold the Fiesta. Mr Terry Davis, a Shadow trade and industry spokesman, described the decision as amounting to industrial sabotage. He alleged that Mr Brittan had put pressure on Sir Austin Bide and demanded to know if that act had been authorised by the Prime Minister. The forceful disclosure of information to a competitor amounted to negligence of the national interest, complained Labour MP’s.
The DTI refused to comment yesterday on whether any government pressure had been applied on Austin Rover to enter into the reciprocal arrangement on the exchange of confidential information. But the Government did bow to pressure from Labour and Conservative MPs that the balance of British representation on the boards of a new amalgamated Leyland Truck and Daf lorry company ought to be reconsidered.
Is the Editor of the Parkers website and price guide, formerly editor of Classic Car Weekly, and launch editor/creator of Modern Classics magazine. Has contributed to various motoring titles including Octane, Practical Classics, Evo, Honest John, CAR magazine, Autocar, Pistonheads, Diesel Car, Practical Performance Car, Performance French Car, Car Mechanics, Jaguar World Monthly, MG Enthusiast, Modern MINI, Practical Classics, Fifth Gear Website, Radio 4, and the the Motoring Independent...
Likes 'conditionally challenged' motors and taking them on unfeasible adventures all across Europe.
Latest posts by Keith Adams (see all)
- Blog : Rover 75 shown to the world – and torpedoed - 21 October 2018
- Concepts and prototypes : MG Rover RDX60 (2000-2005) - 21 October 2018
- The cars : MGF and TF development story (PR3) - 2 September 2018