General Motors Corp's &lt;GM> BedfordTrucks subsidiary has signed a memorandum of understanding with
its affiliate Isuzu Motors Ltd &lt;ISUM.T> to negotiate a van
manufacturing joint venture in the U.K.
    The proposals would involve doubling output at the loss
making plant at Luton in southern England to around 40,000 vans
a year by 1990.
     Bedford, faced with reduced demand for heavy trucks in the
last few years, stopped most of its heavy truck production at
the end of 1986. GM would have a 60 pct stake in the venture
and Izuzu 40 pct
    GM holds a 38.6 pct stake in Isuzu.
    Bedford already has a link with Izuzu under which it
assembles some smaller Japanese vehicles in Britain.
    A Bedford spokesman said financial details of the deal had
not yet been finalised although it was anticipated that the
venture would start without debt.
    Currently the Luton van plant was estimated to be losing
some 500,000 stg a week, he added.
    Bedford's other truck plant, which manufactures military
vehicles and trucks in kit form for export, was not involved in
the venture.
    Analysts said the deal was another attempt by U.K. Truck
manufacturers to restructure operations and cope with heavy
losses and low demand that have hit the market over the past
few years.
    In February, state-owned Rover Group Plc &lt;BLLL.L> formed a
joint venture with &lt;Van Doorne's Bedrijswagenfabriek Daf BV>
for truck manufacture, with Daf owning 60 pct.
    Last year, Ford Motor Co's &lt;F.N> U.K. Subsidiary formed a
joint venture with Fiat SpA's &lt;FIAT.MI> 's &lt;Iveco BV> for the
supply and marketing of small commercial vehicles in Britain.
 Reuter
