§ 2.58 p.m.
EARL ST. ALDWYNMy Lords, my right honourable friend the Minister for Industrial Development is making a Statement in another place on Chrysler UK Limited. It has been agreed through the usual channels that the Statement should not be repeated here, but, with the leave of the House, I will arrange 251 for it to be circulated in the OFFICIAL REPORT.
§
Following is the Statement referred to:
In January. 1967, the then Government agreed that the Chrysler Corporation should acquire control of Rootes Motors Limited (now known as Chrysler UK Limited) and the American parent company today holds 88.4 per cent. of the equity capital and 93.8 per cent. of the voting shares. The Corporation recently asked for a release from one of eight undertakings which it gave in 1967. This would enable it to acquire the remaining minority shareholdings in Chrysler UK Limited. The Government has said that it would agree to this subject to the necessary exchange control consents being obtained. The Chrysler Corporation has confirmed that the remaining undertakings, where still applicable, will remain in force including the undertaking to maintain a majority of British Directors on the Board of Chrysler UK. It has also confirmed that it has every intention of continuing the operations of Chrysler UK Limited in manufacturing vehicles for the British market and for export and of utilising as fully as possible its extensive plants in the United Kingdom.
The principal advantage to Chrysler UK Limited of this proposed adjustment is that, since other Chrysler subsidiaries in Europe are 100 per cent. owned, the UK company will no longer suffer even a marginal disadvantage in attracting new investment. The company therefore, take the view that transfer of the remaining 6.2 per cent. of voting shares and other stock to the Chrysler Corporation is beneficial.