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Questions over Welsh backing for sports car maker TVR

TVR unveiled the first of its new generation of models, the Griffith, last year
TVR unveiled the first of its new generation of models, the Griffith, last year

Questions were hanging over whether sufficient protection has been put in place over Welsh taxpayer's money today, after accounts showed millions of pounds have been loaned to sports car maker TVR. 

TVR announced in 2016 that it was planning to build its next generation of models in South Wales, having made the decision after the Welsh government agreed to provide financial backing. 

Accounts filed at Companies House last month revealed that the Welsh government had bought a 3pc stake in TVR for £500,000, on the same terms as other investors, and also granted the business a £2m loan.

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According to the documents, the loan is repayable on demand until further equity funding of £5.5m is secured, but "the lender has indicated that they have no intention of demanding repayment". 

Wales Shadow Economic Secretary Russell George today called for assurances that taxpayer's money was being properly safeguarded.

“We need to see tangible evidence that this investment represents value for money. The prestige of the TVR badge is one thing – and there is understandable excitement around their decision to locate in Wales.

“However, we need to see the jobs that were promised, and as major shareholders in the company the Welsh public will want to see genuine progress. Ultimately, commercial common sense dictates that there must be an economic benefit to this spending."

The accounts showed that, as of March 31, 2017, there were six people employed at TVR Manufacturing and nobody was employed at its parent company, TVR Automotive. 

TVR through the ages – the tiny company responsible for some of Britain's wildest cars
TVR through the ages – the tiny company responsible for some of Britain's wildest cars

TVR had pledged to create 150 jobs in the Ebbw Vale region back in 2016.

The Welsh government said in a statement that TVR was making "good progress with their new car and have secured all necessary funding to complete the pre-production design and engineering development work". 

Manufacturing work for the Grittith model, launched last September, is expected to begin at a site in Ebbw Vale in 2019. 

The Welsh government added that it had conducted "independent and due diligence" prior to providing the loan, but declined to comment further on loan terms. 

TVR has faced a number of speed bumps since its inception in the Forties, and its last production car came off manufacturing lines in 2007 following a failed relocation to Europe and issues over build quality and engine reliability. 

The manufacturer was bought by Les Edgar in 2013 from its Russian owner Nikolay Smolensky, for an undisclosed sum, but it was only last year that TVR unveiled its first new model under the fresh ownership, the Griffith. 

TVR did not respond to requests for comment.