Welsh Government owns 3 per cent of TVR
Devolved administration bought a minority stake in 2016 when TVR committed to new factory
That's according to the BBC, which reported today on Welsh Conservative unease about whether or not the public's money had been properly safeguarded. The direct investment in TVR cost the government £500,000 - chicken feed when you consider the broader £100m plan to invest in the automotive business park - but a fairly significant sum when dealing with an as yet unproven commercial enterprise.
A Welsh Government spokesperson told the BBC: "As part of our initial support package to commit TVR to manufacturing in Wales and following independent and specialist due diligence, we provided a repayable commercial loan to the company in early 2016. This was made alongside a private sector lender.
Broadly speaking, state ownership of car manufacturer shares is not new or even unusual: Lower Saxony famously owns a 12.7 per cent share of the Volkswagen Group and the French government retains almost a 20 per cent of Groupe Renault, to name just two examples. But it is unusual in the UK - and virtually unheard of for the Welsh Government to take such a position.
Speaking to Autocar, TVR chairman Les Edgar, said: "It's an unusual thing for the Welsh Government to invest in a company like this - in fact, I don't think it's ever happened before - so I see it as a sign of their faith in TVR."
There's no arguing with that, and with the former Techboard building now successfully acquired for the manufacturer to move into - and TVR moving onto the first pilot builds following the launch of the Griffith - the public/private partnership will feel like it's in a good place to deliver on the taxpayer money already spent. As ever, we've got our fingers crossed.
The first couple of years of TVR starting up shop is going to be very tough and cashflow is not going to be easy. They can do with all the support they can get.
It is small beer but it sends the right signals.
Wishing TVR lots of success and that they build good quality cars for the first set of owners.
Should have said “it’s not unusual” regardless of the facts.
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