Companies: TRK   

Shares in automotive technology play Torotrak recovered 11% to 35p in early dealings on a positive 'strategy update' designed to placate disgruntled shareholders. The Lancashire-based venture now says General Motors (GM) wants it to develop its Infinitely Variable Transmission (IVT) technology with tier 1 suppliers and will 'engage' with Torotrak and its partners to refine the transmission to production level. Last week, the share price collapsed dramatically after GM said it did not want to produce the technology for its own cars, despite the fact that demonstrator vehicles proved the technology works. GM, one of Torotrak's key licensees along with Ford, cited 'commercial considerations' and a halt on internal development work for its decision. Torotrak appears to be moving its marketing strategy away from the major motor manufacturers to their suppliers. In its update, the board explained that manufacturers now want suppliers to do much of the new technology development work and as a result, 'some OEMs will not require a production license directly from Torotrak'. Chief executive Maurice Martin added 'ongoing activities' will focus on 'supporting the technology transfer to tier 1 suppliers'. The past year has been a woeful one for investors during which Toyota dumped its technology altogether and the shares have fallen from a 218.5p 52-week high.