BMC was the largest
British car company of its day, with (in
1952) 39 percent of British output, producing a wide range of cars under brand names including
Austin,
Morris, MG, Austin-Healey and
Wolseley as well as commercial vehicles and agricultural tractors. The first chairman was
Lord Nuffield (
William Morris) but he was replaced in August 1952 by
Austin's Leonard Lord who continued in that role until his 65th birthday in
1961 but handing over, in theory at least, the managing director responsibilities to his deputy
George Harriman in
1956.
BMC's headquarters were at the Austin plant at
Longbridge, near
Birmingham and Austin was the dominant partner in the group mainly because of the chairman. The use of Morris engine designs was dropped within 3 years and all new car designs were coded
ADO from "
Amalgamated Drawing Office". The
Longbridge plant was up to date, having been thoroughly modernised in 1951, and compared very favourably with Nuffield's 16 different and often old fashioned factories scattered over the
English Midlands. Austin's management systems however, especially cost control and marketing, were not as good as Nuffield's and as the market changed from a shortage of cars to competition this was to tell. The biggest-selling car, the
Mini, was famously analysed by
Ford Motor Company who concluded that BMC must be losing £30 on every one sold. The result was that although volumes held up well throughout the BMC era, market share fell
as did profitability and hence investment in new models, triggering the 1966 merger with
Jaguar Cars to form
British Motor Holdings (
BMH), and three years later leading to the government sponsored merger of BMH with
Leyland Motor Corporation.
Source:
http://en.wikipedia.org/wiki/British_Motor_Corporation
- published: 14 Feb 2013
- views: 82853