TVR to close factory with loss of 260 jobs

The Transport and General Workers Union (TGWU) said TVR had told their officials at a meeting that the plant in northern England would be shut down in six months.

"They propose to keep some presence in the UK but we don't know what that is. It sounds like it may be a relocation," a TGWU spokesman said.

TVR said the company would not be closing and that it was looking for new premises in the area.

"This has been on the cards for quite a while," a TVR spokesman told the BBC.

"Ideally we would stay around here because that is where the trained people are but we cannot guarantee it. We are investing for the future and our new owner is in it for the long term."

The TGWU aid 70 workers had been sent letters on Monday telling them not to report for work and there would be a meeting on May 3 to consider what action to take.

"This is a devastating blow and has left the workforce stunned," said Andy Robertson, the union's regional industrial organiser.

TVR, which was bought in 2004 by Nikolai Smolensky, the son of Russian banker Alexander Smolensky, was not immediately available for comment. Media reports say the firm's sales have suffered over the Winter.

The job losses are another blow for the car industry which last week saw 2,300 jobs go at Peugeot's plant at Ryton.

TVR was founded in 1947 by Trevor Wilkinson and the cars have an ardent following among drivers who appreciate their dramatic looks and distinctive engine note.