No, not really - just a slow down to totally revamp
http://news.ft.com/cms/s/4d86e614-fc...0779e2340.html
Local council brokers factory move for sports car maker
By John Griffiths, Motoring Editor
Published: June 16 2006 03:00 | Last updated: June 16 2006 03:00
TVR, the Blackpool-based sports car maker, is to move to a former wartime Lancaster bomber factory near the city's airport.
The move will allow the company, owned by Nikolai Smolensky, the Russian oligarch, to escape elements of its current lease with which it is unhappy. It has occupied the same site for more than 30 years.
The existing premises are still owned by Peter Wheeler, the former North Sea oil engineer who sold TVR to Mr Smolensky in 2004 for a reputed £15m. Mr Wheeler had run it as a wholly owned private company for almost two decades.
The lease on the current site, at Bristol Avenue, runs out in five months but people close to the company told the Financial Times that Mr Smolensky and fellow directors were determined to resist pressure to sign a renewal immediately on similar terms.
While the carmaker has yet to file its accounts for last year, it is understood to be still heavily loss-making. It made a pre-tax loss of £11.8m in 2005, equivalent to about 70 per cent of its £16.7m turnover. However, that year's directors' report also contained a commitment from its "ultimate controlling party" - Mr Smolensky - to continue funding TVR through production cuts and a restructuring.
However, the move to the airport site is itself likely to turn out to be a stop-gap. The deal, brokered by Blackpool city council, is understood to entail a relatively short-term rolling lease. It would allow TVR to stay in in production while Mr Smolensky and his board finalise a strategy aimed at turning TVR into what one director described as "another Aston Martin", producing 5,000 cars a year for sale globally.
People close to Mr Smolensky say he regards a new, purpose-built factory as essential to this strategy but that where it might be located remains unresolved.
TVR is looking at radically different technologies for its next range of cars, including the use of carbon fibre or hydroformed aluminium for bodies. Either would require a new set of skills compared with TVR's traditional construction of glass-fibre bodies attached to a tubular spaceframe chassis. It is possible that some sub-assembly work related to such new processes could be moved elsewhere. The move of some functions abroad is not being ruled out.
Yesterday's disclosure of the move came as a relief to TVR's 260-strong workforce, some 70 of whom have been idled as part of production cuts which have left the company building fewer than 10 cars a week, compared with past peak annual output levels of close to 2,000. "We're not out of the woods yet but this looks like positive news after a period of gloom," Andy Robertson, the T&G union's regional industrial organiser, said last night following talks with TVR directors