British Boutique Sports Car Maker TVR Sold to 24 Year Old Russian Investor

Photos

It wasnt long ago when TVR was Britains largest independent car manufacturer. (Photo: TVR)

Twenty-four year old Russian investor Nikolai Smolenski purchased 100 percent of TVR from former owner Peter Wheeler.

To the relief of TVRs employees and fans, the company will remain more or less the same as it has been up to this point. (Photo: TVR)

Arriving in grand fashion by helicopter, Smolenski has visited the Bristol Avenue plant on several occasions. (Photo: TVR)

With his eye on the world market, Smolenski has planned the development of left-hand drive TVRs. (Photo: TVR)

The TVR should easily break into other markets thanks to their striking and outrageous styling, powerful, raucous engines and high levels of quality finishing. (Photo: TVR)

TVR to Build Left-Hand Drive Cars for Europe and North America

To many North Americans, TVR is little more than another three letter acronym, but to a select few whose automotive interests span beyond our borders the TVR nameplate represents the pinnacle of modern British sports cars. A sign of the sad state of the British auto industry, whose citizens once held ownership in marques such as Jaguar, Austin, Aston Martin, Triumph, MG, Riley, and the list goes on and on, there was a point not too long ago when TVR was Britains largest independent car manufacturer, before Rover tumbled back into British ownership from a short-lived stay at BMW.

If Rover doesnt manage to keep itself above water, and rumors about its demise are flourishing, then TVR would have until recently been the heir apparent to the largest British owned independent car manufacturer honors once again, but such cant be the case anymore.

On July 27th 2004, Peter Wheeler surprisingly sold 100 percent of TVR to 24 year old Russian investor Nikolai Smolenski for the undisclosed sum of whats believed to be just over $27 million US dollars. To the son of millionaire Alexander Smolenski, who amassed his huge fortune in post-communist Russia, the deal was literally too good to pass up. After all, whats a mere $27 million to a young man with a personal wealth beyond $100 million U.S.?

Although an affordable purchase, running TVR is by no means a simple project. Nikolai is fully aware of the rigors and demands of the business world however, as for the past three years he has headed Russias OVR bank. In his earlier years he learned business skills and techniques in the UK and is thus familiar with foreign corporate methods.

Will the transfer of the company into a young business entrepreneurs hands spell the end the king of the British sports cars? Not according to Smolenski, who commented, “I have always been a fan of British car manufacturing and believe that the best automotive designers and engineers are in this country.” To the relief of TVRs employees and fans, the company will remain more or less the same as it has been up to this point, with no major shakedown, buildup, or restructuring planned for the immediate future.

In the official press release Wheeler stated, “Its been a fascinating time and I shall be very sad when I eventually leave. However, its time to hand the reins over to a younger man and I look forward to helping him with his exciting plans.”

Wheeler will stay on board as a consultant to Smolenski during the transition period to ensure that all goes smoothly.

As reported in Blackpool Today, Smolenski visited the factory on Thursday, July 29th to meet staff and reassure them about the future of the company and specifically the Bristol Avenue facility.

Of the visit the The Gazette owned Blackpool website reported TVR spokesman Ben Samuelson as saying, “Mr. Smolenski has been here doing his job - running the company that he owns. He has met everyone and has been round the factory.” Samuelson continued, “He addressed the staff and has been encouraging everybody with his exciting ideas.”

According to the newspaper, Smolenski has visited the Bristol Avenue plant previously on several occasions, having arrived in grand fashion by helicopter.

In the future, Smolenski intends to build TVR as a global player, which is ambitious but completely achievable. In order to pull this off, Smolenski and TVR will invest heavily into new in-car technologies and advanced production methods.

A critical progression to move TVR into the big leagues is the development of left hand drive vehicles; currently all TVRs exported for sale are right hand drive, which is an inconvenience to the rest of the left-hand drive world. The decision not only makes good business sense, but its only logical that the new president would want to drive a car from his own company with the steering wheel on the “correct” side. With a Russian owner keen to expand sales, its expected that left hand drive TVRs will arrive in Mainland Europe within a years time, an area which TVR could easily have in its back pocket.

Despite only offering right-hand drive cars, in recent years the TVR brand has surged in popularity. This is mostly because of striking and outrageous styling, powerful, raucous engines and high levels of quality finishing. But more recent triumphs can be attributed to strategic Hollywood-style product placement; the top honor goes to the techno-thriller film Password: Swordfish of which a TVR Tuscan was prime villain John Travoltas getaway vehicle. Video games such as Test Drive and even more renowned Grand Turismo series have put gamers around the world behind the wheel of TVR.

The man who transformed the small-time company of the past into vehicles like the supercar-stomping Sagaris and the gorgeous 2+2 Cerbera was Peter Wheeler. Head of the company since 1982, the Yorkshireman pulled a 180 on the dying firm, making it a profitable car manufacturer. Record sales were reached in the 1990s with volumes exceeding 2,000 units per year at a time where Aston Martin was barely in the hundreds.

TVR differed from many other British sports car manufacturers at this time as it only produced turnkey vehicles, and no kits;
all products were hand-built and finished for the companys select clientele. All successful, modern TVRs, including the Tasmin, the 280S, 390SE and the carbon-fiber bodied SEAC, can all be linked back to Peter Wheeler.

Today, TVR designs and builds its own engines; styles, shapes and moulds its fiberglass bodies in house; and completes its production vehicles at its Blackpool facility in the UK. Unlike Lotus, which is banking its entire empire on engineering consultation, as well as the Elise and related Exige road cars, TVRs range of sports cars is phenomenal, both in the high and medium ranges. The automaker does not rely on outsourced motors or mechanicals, giving it the freedom to produce to its own specifications. While sales hover around the 1,000 mark annually, TVRs staff of 400 is pulling in the green, which is commendable considering the companys narrow target market, the need to continually develop future road cars, and the massive costs associated with developing and backing full racing teams.

Although the first TVRs were imported to the U.S. in 1966, it was Canada that proved to be TVRs most important foreign market. But like many small British sports car companies, money was always a problem. Therefore it was not uncommon to see the title of TVR North America ownership changing hands, a process which occurred several times during the companys existence on our side of the Atlantic.

Restrictions on emissions, bumper regulations, and federal safety standards prevented many popular TVR models from being sold in the U.S., including the TVR S and SE models. These, however, were sold in Canada. TVR North America officially ceased importing vehicles in 1987, but they are still around today providing parts and service support.

With a new wave of British sports cars coming across the Atlantic, including Noble, Ariel, and Caterham, and an energetic, young, entrepreneurial owner now at the helm, there is little doubt that TVR will once again be back in North America soon.