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LucasVarity plc was a UK motor parts manufacturer, created by a merger of Lucas Automotive and the North American Group Varity Corporation Inc in August 1996. Lucas had employed 46,000 people compared with Varity's 9,000.
At the time of the merger LucasVarity announced plans for a £65 million pound savings programme. The areas streamlined included the treasury, communications and marketing departments, as well as divisional managers. "The merger created a unique opportunity to reassess the skills and competencies we require in the senior management team," said LucasVarity chief executive Victor Rice.
In 1998 it attempted to shift its head office to the USA; however, the company suffered an embarrassing defeat in a shareholder vote on its decision to move across the Atlantic, with claims that its directors were looking to cash in on the much higher pay packets available in the US. Victor Rice suffered a barrage of criticism from shareholders. He sold the company to TRW, an American company specializing in satellites, defense, and automotive parts. When TRW was acquired by Northrop Grumman, Varity and TRW's own automotive group were sold to the Blackstone Group as TRW Automotive.
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