The British Motor Corporation Limited (BMC) was a UK-based vehicle manufacturer formed in early 1952 to give effect to an agreed merger of the Morris and Austin businesses.[1]
BMC acquired the shares in Morris Motors and the Austin Motor Company. Morris Motors, the holding company of the productive businesses of the Nuffield Organization, owned MG, Riley, and Wolseley.[1]
The agreed exchange of shares in Morris or Austin for shares in the new holding company, BMC, became effective in mid-April 1952.[2]
In September 1965, BMC took control of its major supplier of bodies, Pressed Steel, acquiring Jaguar's body supplier in the process. In September 1966, BMC merged with Jaguar Cars.[3] In December 1966, BMC changed its name to British Motor Holdings Limited (BMH).[4]
A BMC share certificateA BMC ambulanceA 1963 Austin Mini Super-Deluxe The Mini was BMC's all-time best seller.A 1965 Riley 4/72
BMC was the largest British car company of its day, with (in 1952) 39% of British output, producing a wide range of cars under brand names including Austin, Morris, MG, Austin-Healey, Riley, and Wolseley, as well as commercial vehicles and agricultural tractors. The first chairman was Lord Nuffield (William Morris), but he was replaced at the end of 1952 by Austin's Leonard Lord,[6] 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 Longbridge plant, 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 three 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 to Nuffield's 16 different and often old-fashioned factories scattered over the 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, which concluded that BMC must have been 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 the government-sponsored merger of BMH with Leyland Motor Corporation in 1968.
At the time of the mergers, a well established dealership network was in place for each of the marques. Among the car-buying British public was a tendency of loyalty to a particular marque and marques appealed to different market segments. This meant that marques competed against each other in some areas, though some marques had a larger range than others. The Riley and Wolseley models were selling in very small numbers. Styling was also getting distinctly old-fashioned and this caused Leonard Lord, in an unusual move for him, to call upon the services of an external stylist.
As well as the car manufacturing arms, the company had its own printing and publishing firm, the Nuffield Press, inherited from the Morris Motors group.
BMC Farina
In 1958, BMC hired Battista Farina to redesign its entire car line. This resulted in the creation of three "Farina" saloons, each of which was badge-engineered to fit the various BMC car lines.
The compact Farina model debuted in 1958 with the Austin A40 Farina. This is considered by many to be the first mass-produced hatchback car: a small estate version was produced with a horizontally split tailgate, its size and configuration would today be considered that of a small hatchback. A Mark II A40 Farina appeared in 1961 and was produced through 1967. These small cars used the A-Series engine.
Most BMC projects followed the earlier Austin practice of describing vehicles with an 'ADO' number (which stood for 'Austin Design Office' but after the merger 'Amalgamated Drawing Office'). Hence, cars that had more than one marque name (e.g. Morris Mini Minor and Austin Mini) would have the same ADO number. Given the often complex badge-engineering that BMC undertook, it is common amongst enthusiasts to use the ADO number when referring to vehicles which were a single design (for example, saying 'The ADO15 entered production in 1959'- this encompasses the fact that when launched, the ADO15 was marketed as the Morris Mini Minor and, later, the Austin Seven—soon replaced with Austin Mini). The ADO numbering system did continue for some time after the creation of British Leyland – notable models being the Austin Allegro (ADO67) and the prototype version of the Austin Metro (ADO88).
Commercial vehicles
Most BMC-era commercial vehicles were sold as Morris, but there were sometimes Austin equivalents. Radiator badges on the larger vehicles were often BMC.
Car-based light vans
A Morris Cowley MCV Van
Morris Z-series ¼-ton (Morris Eight Series E) 1940–53
In the 1950s and the 1960s, BMC set up 21 plants overseas, some as subsidiaries, and some as joint ventures, to assemble its vehicles. One was British Motor Corporation (Australia) which was established in 1953 at the Nuffield Australia site on the one-time Victoria Park Racecourse, Sydney.[8] This facility went from a marshalling area for fully imported Morris cars (Austins were up until then being assembled in Melbourne from an earlier Austin Motors establishment), to a facility for making CKD cars, to the total local fabrication and construction of vehicles, engines, and mechanicals.[9]
Denmark was a particularly strong market for BMC products in Europe. In the postwar period, the Danish government closely regulated exports and imports to maintain the country's balance of trade. High-value imports such as cars were heavily taxed.
From 1963 to 1975, a company was established in Spain to produce BMC cars under licence, its name was: 'AUTHI' -'Automoviles de Turismo Hispano-Ingleses' -'Spanish-English Tourism Automobiles'. The factory was in Pamplona, Navarra, Spain, and when the production of Austin and Mini cars was discontinued, Sociedad Española de Automóviles de Turismo (SEAT), owned by the state and some banks and industrial investors, purchased the factory. After the takeover of SEAT by Volkswagen, SEAT made an 'internal' resale of the Pamplona factory, formerly Authi, to Volkswagen, which soon started producing there the 'Polo'.
In 1964, BMC Turkey was established in cooperation with the British Motor Corporation. The Turkish partners retained the 74% of the capital while 26% held by the UK-based British Motor Corporation.
Government takes over
The Wilson Labour government (1964–1970) came to power at a time when British manufacturing industry was in decline and decided that the remedy was to promote more mergers, particularly in the motor industry. Chrysler was already buying into the Rootes Group, and Leyland Motors had acquired StandardTriumph in 1961 (and would buy Rover in 1967), becoming a major automotive force. BMC was suffering a dramatic drop in its share of the home market. Tony Benn, appointed Minister of Technology in July 1966, brought pressure to bear on the industry.
British Motor Holdings Limited
In mid-1965 BMC offered to buy its major supplier Pressed Steel and took control in September with 27,000 employees.[10][11] Twelve months later, BMC merged with Jaguar Cars adding a further 7,000 employees.[12] On 14 December 1966 BMC shareholders approved the change of its name to British Motor Holdings (BMH) and it took effect from that date.[4]
Little more than 12 months later in January 1968, under pressure from the LabourBritish government and Minister of Technology Tony Benn, a further wave of mergers occurred in the British car industry. BMH merged with the Leyland Motor Corporation (LMC) to form the British Leyland Motor Corporation (BLMC).[13] BMC Ltd (which contained most of the operations of the former British Motor Corporation) remained a subsidiary company of BLMC after the merger, although its name was later changed to "Austin-Morris Ltd" - reflecting the new Austin-Morris division of BLMC, with the BMC name subsequently disappearing from public view.
Within the new conglomerate, the various marques were grouped together into two main divisions, based largely on the original BMC and LMC businesses; with the former mass market BMC marques becoming part of the Austin-Morris division of BLMC, whilst LMC stablemates Rover and Triumph joined Jaguar in the Specialist Division.
This basic structure remained in place right up until the creation of the Austin Rover Group in the early 1980s, by which time BLMC had been nationalised and renamed British Leyland Limited[14] (later just BL plc), although by this time both Jaguar and Land Rover had been placed in their own independent subsidiaries which were separate from the old BMC/LMC divisions.
Post mortem
Following the merger with Leyland, a review of company records undertaken with the support of the new board, author Graham Turner stated that at the time of the merger, 16 versions of the Mini were being produced, yielding an average profit of just £16 per car, while every Morris Minor sold lost the group £9 and every Austin Westminster sold lost £17.[15] This helps to explain why the Westminster and Minor were among the early casualties of the merger, as well as the introduction of the Mini Clubman, capable of being built for less, but sold for more than a standard Mini thanks to simplified ("modernised") front panels.
Even the UK's best seller, the Austin/Morris 1100, had to be subjected to an emergency cost-reduction programme which removed about £10 from the cost of each car, applying changes that included the omission of lead sealing from body joints (£2.40 per car), removing provision for optional reversing lamps (£0.10) and "changes in body finish" (£0.75).[15]
Rebuilding the Cowley plant to include "new automated body building facilities" saved £2.00 in transport costs per car for bodies that no longer needed to be transported from the corporation's Swindon plant and in the longer term further transport costs were saved by concentrating assembly of the model at a single plant, rather than splitting it between plants at Cowley and Longbridge.[15]
Because of the high proportion of auto-production costs represented by fixed costs that needed to be allocated over a planned production volume, and the use in the 1960s of investment appraisal criteria that were ill-suited to accounting for volume fluctuations and the rapidly changing value of the UK currency in the 1960s, the precise figures quoted may be open to challenge, but the new management's diagnosis that BMC's profitability was insufficient to fund support and new model investment to cover its disparate range of brands and models was hard to refute.[citation needed]
Throughout the 1960s, the failure of the United Kingdom to join the European Economic Community meant that the company could not exploit the lucrative European markets due to high import tariffs, whereas BMC's key rivals Ford and General Motors both had German subsidiaries producing and selling within the bloc, and were therefore immune from those import tariffs.[citation needed]
Legacy
In 2002, BMC (Turkey), a Turkish commercial vehicle builder, originally set up by the British Motor Corporation to build its designs under licence in the 1950s, began exporting its vehicles to Britain. This allowed the return of the BMC brand to British roads for the first time in over 40 years.
MG is a British automotive marque founded by Cecil Kimber in the 1920s, and M.G. Car Company Limited was the British sports car manufacturer existing between 1930 and 1972 that made the marque well known. Since 2007, the marque is controlled by Chinese state-owned automaker SAIC Motor.
Morris Motors Limited was a British privately owned motor vehicle manufacturing company formed in 1919 to take over the assets of William Morris's WRM Motors Limited and continue production of the same vehicles. By 1926 its production represented 42 per cent of British car manufacture—a remarkable expansion rate attributed to William Morris's practice of buying in major as well as minor components and assembling them in his own factory.
The Austin Motor Company Limited was an English manufacturer of motor vehicles, founded in 1905 by Herbert Austin in Longbridge. In 1952 it was merged with Morris Motors Limited in the new holding company British Motor Corporation (BMC) Limited, keeping its separate identity. The marque Austin was used until 1987 by BMC's successors British Leyland and Rover Group. The trademark is currently owned by the Chinese firm SAIC Motor, after being transferred from bankrupt subsidiary Nanjing Automotive which had acquired it with MG Rover Group in July 2005.
British Leyland was a British automotive engineering and manufacturing conglomerate formed in 1968 as British Leyland Motor Corporation Ltd (BLMC), following the merger of Leyland Motors and British Motor Holdings. It was partly nationalised in 1975, when the UK government created a holding company called British Leyland, later renamed BL in 1978. It incorporated much of the British-owned motor vehicle industry, which in 1968 had a 40% share of the UK car market, with its history going back to 1895. Despite containing profitable marques such as Jaguar, Rover, and Land Rover, as well as the best-selling Mini, BLMC had a troubled history, leading to its eventual collapse in 1975 and subsequent part-nationalisation.
British Motor Holdings Limited (BMH) was a British vehicle manufacturing company known until 14 December 1966 as British Motor Corporation Limited (BMC). BMH was created as a holding company following BMC's takeover of both Jaguar Cars and the Pressed Steel Company in that year.
Riley was a British motorcar and bicycle manufacturer from 1890. Riley became part of the Nuffield Organization in 1938 and was merged into the British Leyland Motor Corporation in 1968. In July 1969 British Leyland announced the immediate end of Riley production, although 1969 was a difficult year for the UK automotive industry and many cars from Riley's inventory may have been first registered in 1970.
The BMC ADO16 is a range of small family cars built by the British Motor Corporation (BMC) and, later, British Leyland. Launched in 1962, it was Britain's best-selling car from 1963 to 1966 and from 1968 to 1971. The ADO16 was marketed under various make and model names; however, the Austin 1100 and Morris 1100 were the most prolific of all the ADO16 variants. The car's ubiquity at the height of its popularity led to it simply being known as the 1100 (eleven-hundred) in its home market. Also made with a 1275cc engine, it was then typically called 1300.
The BMC B series was a line of straight-4 & straight-6 internal combustion engine mostly used in motor cars, created by British automotive manufacturer Austin Motor Company.
Nuffield Organization was the unincorporated umbrella-name or promotional name used for the charitable and commercial interests of owner and donor, William Morris, 1st Viscount Nuffield. The name was assumed following Nuffield's gift made to form his Nuffield Foundation in 1943, it linked his business interests to his existing very generous philanthropy. The same enterprises had previously been referred to as the Morris Organizations and at first described itself as The Nuffield Organization, A Cornerstone of Britain's Industrial Structure.
The Riley One-Point-Five and similar Wolseley 1500 are cars produced by Riley and Wolseley respectively from 1957 until 1965. They utilised the Morris Minor floorpan, suspension and steering but were fitted with the larger 1,489 cc (90.9 cu in) B-Series engine and MG Magnette gearbox.
The Riley 4 / Sixty Eight and Riley 4 / Seventy Two are cars produced by BMC from 1959 to 1969, under the Riley marque. They are closely related to the Pinin Farina-designed MG Magnette Mark III and Wolseley 15/60 and the simpler Austin A55 Cambridge Mark II, Morris Oxford V pair, sharing the MG's rear styling and engine. This Riley was the most expensive car in that series.
The MG Magnette is a car that was produced by MG between 1953 and 1968. The Magnette was manufactured in two build series, the ZA and ZB of 1953 through to 1958 and the Mark III and Mark IV of 1959 through to 1968, both using a modified Wolseley body and an Austin engine.
Wolseley Motors Limited was a British motor vehicle manufacturer founded in early 1901 by the Vickers Armaments in conjunction with Herbert Austin. It initially made a full range, topped by large luxury cars, and dominated the market in the Edwardian era. The Vickers brothers died and, without their guidance, Wolseley expanded rapidly after the war, manufacturing 12,000 cars in 1921, and remained the biggest motor manufacturer in Britain.
The Wolseley 15/60 is an automobile which was produced from 1958 to 1961, and then, as the Wolseley 16/60, from 1961 to 1971. The 15/60 was the first of the mid-sized Pinin Farina-styled automobiles manufactured by the British Motor Corporation (BMC). Launched in December 1958 as part of BMC's Wolseley brand, the design would eventually be shared with seven other marques. All of the cars were updated in 1961 with a larger engine and new model designations. The Wolseley 16/60 was the last, in production until 24 April 1971.
Pressed Steel Company Limited was a British car body manufacturing business founded at Cowley near Oxford in 1926 as a joint venture between William Morris, Budd Corporation of Philadelphia USA, which held the controlling interest, and a British / American bank J. Henry Schroder & Co. At that time the company was named The Pressed Steel Company of Great Britain Limited. It acquired Budd's patent rights and processes for use in the United Kingdom. Morris transferred his interest to his company, Morris Motors Limited.
British Motor Corporation (Australia) was a motor manufacturing company formed in Australia in 1954 by the merger of the Austin Motor Company (Australia) and Nuffield (Australia). This followed the merger in 1952 of the Austin Motor Company and the Nuffield Group in the United Kingdom to form the British Motor Corporation. Following further corporate changes in the UK in the late 1960s, BMC Australia was absorbed into the newly established British Leyland Motor Corporation of Australia, the name of which became Leyland Motor Corporation of Australia in 1972, and then JRA Limited in March 1983.
Plant Oxford located in Cowley, southeast Oxford, England, is a BMW car assembly facility where Mini cars are built. The plant forms the Mini production triangle along with Plant Hams Hall where engines are manufactured and Plant Swindon where body pressings and sub-assemblies are built.
The Austin Drawing Office was the design and engineering department of the British Motor Corporation. From the early 1950s, the resulting projects of the office were known by the initials ADO. The numbers were assigned to vehicle and engineering projects, some resulting in production models. The ADO numbering system continued well beyond BMC's absorption into British Leyland, who continued to use the convention until the late 1970s.
The Morris Oxford Farina is a series of motor car models that were produced by Morris of the United Kingdom from 1959 to 1971. The Farina name coming from the Italian design studio employed for styling.
References
1 2 Morris-Austin Merger Company Named. The Times, Friday, 29 February 1952; pg. 9; Issue 52248
↑ City News in Brief. The Times, Monday, 21 April 1952; pg. 9; Issue 52291
↑ "Jaguar Group of companies is to merge with The British Motor Corporation Ltd., as the first step towards the sitting up of a joint holding company to be called British Motor (Holdings) Limited." Joint merger statement, 11 July 1966 issued at the press conference at the Great Eastern Hotel, London
1 2 British Motor Takes That New Label The Times, Thursday, 15 December 1966; pg. 17; Issue 56815
↑ "Lord Nuffield's Retirement". The Times. No.52498. 18 December 1952. p.6.
↑ "New Dormobiles". Autocar. Vol.127 (nbr 3739). 12 October 1967. pp.91–92.
↑ The Macquarie Dictionary of Motoring, 1986, page 62
↑ Timothy R. Whisler (1999). The British Motor Industry 1945–1994. Oxford University Press. ISBN0-19-829074-8.
↑ B.M.C.-Pressed Steel's Defensive Merger The Times, 23 July 1965; pg. 17; Issue 56381
↑ B.M.C. Gets 89 p.c. Of Pressed Steel The Times, 10 September 1965; pg. 15; Issue 56423
↑ "...after lengthy and cordial discussions with Sir George Harriman, we have mutually agreed to a merger of our two organisations" Letter to suppliers by Sir William Lyons, July 1966
↑ £410m British Leyland group to storm the world market The Times, Thursday 18 January 1968; pg. 17; Issue 57152
↑ Government takes over the restyled Leyland, British Leyland today joins the ranks of nationalized industries The Times, Monday 11 August 1975; pg. 13; Issue 59471
1 2 3 "The cars then and now". Autocar. 28 October 1971. p.57.
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