General Motors Corps &lt;GM> Bedford Trucks 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 40000 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 500000 stg a week he added. Bedfords 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 Doornes Bedrijswagenfabriek Daf BV> for truck manufacture with Daf owning 60 pct. Last year Ford Motor Cos &lt;F.N> U.K. Subsidiary formed a joint venture with Fiat SpAs &lt;FIAT.MI> s &lt;Iveco BV> for the supply and marketing of small commercial vehicles in Britain.
GM, ISUZU IN U.K. TRUCK JOINT VENTURE