17 November 2006

TVR, one of Britain's longest established independent sports car manufacturers, is to outsource the assembly of its cars to a sophisticated production operation in Europe, whilst production of its engines, clutches, gearboxes and other essential components are expected to remain in Britain.

The management, sales, marketing and research and development teams are expected to remain in the region in which the company was founded in 1947, and dealerships, service centres and general operations will remain unaffected.

The move will, however, mean the closure of the company's well-known Bristol Avenue plant and the loss of many production roles. TVR has been based at its historic factory in Blackpool since the 1970s.

TVR owner Nikolai Smolenski said: "We are extremely sorry that, after a period of uncertainty and raised hopes that we could continue production ourselves in Blackpool, we have had to make this difficult decision. We need to secure the future of the company and move it forward, and I am afraid we see no other way to do this."

Consultation is underway with the Transport and General Workers' Union on redundancy, and counseling support is being put in place. Smolenski added: "We are acutely aware of the shock and distress this will cause for our staff and their families. We will ensure that we meet all of our responsibilities towards them over the coming months. We would also like to express our gratitude to all those who have worked with us over the past months to try to maintain the company in Blackpool."

The new state-of-the-art production facility will enable TVR to increase its volumes and to achieve important type approvals necessary for international markets, as well as to further its programme of continuous quality improvements.

TVR is also in advanced discussions with third-party automotive specialists Ricardo and Sparco, as part of the company's ongoing product advancement strategy. Ricardo is a UK-based provider of automotive engineering solutions, specialising in the development of engines, drivelines and transmission systems. Sparco is a leading manufacturer of racing and automotive accessories, in particular race seats and other motorsport equipment.

"These are important steps for TVR," continued Smolenski. "We shall be making further announcements in due course about our plans, which we believe represent a major advance for the proud name of TVR, but for the time being we are concentrating on our staff in Blackpool and the consultation process."

The relocation will be managed carefully to minimise disruption and to ensure that customers' orders are unaffected. TVR's dedicated network of dealers and service centres throughout the UK and abroad will continue to operate as normal.

TVR remains committed to producing some of the most exhilarating premium performance cars, something it has done for some 60 years and which it's looking forward to continuing well into the future.