Welsh government invested £14 million in failed TVR factory bid

The Welsh government invested £14 million of taxpayers’ funds into a failed bid to tempt TVR to produce its new Griffith sports cars in the country – before the firm eventually relocated to Hampshire.

According to a letter written by Adrian Crompton, auditor general for Wales, the government spent £4.75m buying the Ebbw Vale factory and a further £7.6m on its refurbishment. It also lent TVR £2m and invested £500,000 in equity shares in 2016.

The Welsh government's understanding was that the car maker would use the factory once the refurbishment works were complete.

The plant was finished in July 2023, but TVR “was still not able to lease the building for production purposes”, according to Crompton. In turn, the Welsh government sought other tenants for the building, with a projected return of £7.35m to £11.03m over a period of 10-15 years.

It appointed an agent to market the factory in November 2023 and actively began looking for a new tenant in January 2024. “No formal offers have been received” as of 12 July 2024.

TVR, meanwhile, announced in December 2023 that it would establish a new base at the Thruxton circuit in Hampshire.

The Welsh government still owns its shares in TVR Automotive (TVRA), although its stake was diluted to 1.6% following lithium firm Ensorcia’s 2021 investment in the company, according to Crompton.

“This funding enabled TVRA to repay the Welsh government loan and accrued interest but, so far, is less than the estimated £40m necessary for car production,” said Crompton.

The Welsh government reserves a buy-back clause for its stake in TVR, but with shares valued below the price paid in 2016.