TVR: It’s over

Workers learned yesterday that 260 jobs were to go as the iconic sports car firm moves production overseas - just weeks after its owner promised to stay in the resort.

Desperate last-ditch talks were continuing in the hope that the company's owner, Russian tycoon Nikolai Smolenski, will perform a dramatic U-turn after yesterday's shock announcement at the Bristol Avenue factory.

TVR is expected to outsource production of its cars to a Turin-based company but one possibility, which could be pursued by unions, Blackpool Council and the North West Development Agency, is that staff could set up their own business and bid to make TVR cars under contract.

Alan Cavill, Blackpool's head of corporate policy and development, said: "We made what we thought was a very good offer and it will remain on the table throughout the 90 day consultation period, but Mr Smolenski seems to want to pursue this idea of outsourcing production.

"I don't see any reason why there can't be a separation of the company so the workers have a contract with Mr Smolenski to produce a certain number of cars at a certain time and he doesn't have all the worries and costs he has now."

"We have to understand this is not a malicious decision. If a company sees ways of reducing overheads it will pursue them."

Blackpool North and Fleetwood MP Joan Humble said: "I'm feeling hugely disappointed. I've worked very hard with Blackpool Council and with the union to safeguard TVR jobs in Blackpool.

"We were all celebrating and looking forward to TVR remaining in Blackpool so the announcement is a huge disappointment, especially to the workforce. We must put the needs of the workforce first.

"We must all continue to look at every possible option that may be available to keep TVR in Blackpool."

Coun Eddie Collett, the council's deputy leader and regeneration portfolio holder, said: "TVR has built its reputation thanks in no small part to the dedicated and highly skilled Blackpool workforce. The loss of these jobs is tragic news for all those families affected by this decision and a real blow to the Blackpool's manufacturing sector.

"It is a very sad day and we bitterly regret the fact that car production will cease in Blackpool."

In a statement Mr 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 decision.

"We need to secure the future of the company and move it forward. I am afraid we see no other way to do so."

Rumours about the company's future have been circulating since Mr Smolenski's £15 million takeover in 2004. 71 workers were laid off early this year and the future looked bleak in April when the firm announced it was seeking a site away from the Fylde Coast - but then a deal was struck with Blackpool Council.

Just two months ago, in his first ever interview, he told The Sun's motoring correspondent Ken Gibson: "We don't have anyone but the workers - they are the company."

Within days the temporary move to the Arvin Meritor exhaust plant on Squires Gate Lane was scrapped.

But, at the time just last month, the firm insisted it was still determined to move to a new site at Blackpool Business Park in 2008.

A handful of administrative staff are expected to stay in the resort, but a TVR task force including council and regional development agency staff has been put in place to provide information on benefits, training and new job opportunities.