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British Leyland Motor Corporation

From Wikipedia, the free encyclopedia

British Leyland Motor Corporation
British Leyland Logo
Fate Nationalised, name changed 3 times and privatised
Successor Rover Group
Founded 1968
Defunct 1986
Location United Kingdom
Products 1948 Land Rover (Rover)
1968 Jaguar XJ6 (BLMC)
Rover 800-series/Sterling (ARG)
Key people Lord Stokes, Michael Edwardes, Graham Day
Subsidiary Austin Rover Group, Land Rover Group, Leyland Vehicles

The British Leyland Motor Corporation (BLMC) was a vehicle manufacturing company formed in the United Kingdom in 1968. Ultimately, it would become nationalised as British Leyland, often referred to as just BL. It incorporated much of the British owned motor vehicle industry, but had a troubled history. In 1986 it was renamed as the Rover Group, later to become MG Rover Group, which went bankrupt in 2005, bringing an end to mass car production by British owned manufacturers - with MG becoming part of Chinese Nanjing Automobile and Rover disappearing completely, with its brand being bought by Ford.

Contents

[edit] History

BLMC was created in 1968 by the merger of British Motor Holdings (BMH) and Leyland Motor Corporation (LMC), encouraged by the Wilson Labour Government (1964–1970). The merger combined most of the remaining independent British car manufacturing companies and included car, bus and truck manufacturers and more diverse enterprises including construction equipment, refrigerators, metal casting companies, road surface manufacturers; in all, nearly 100 different companies. The new corporation was arranged into seven divisions under its new chairman, Sir Donald Stokes (formerly the chairman of LMC).

old BLMC share
old BLMC share

The company became an infamous monument to the industrial turmoil that plagued Britain in the 1970s. At its peak, BLMC owned nearly 40 different manufacturing plants across the country. Even before the merger BMH had included theoretically competing marques which were in fact selling substantially similar "badge engineered" cars. To this was added the competition from yet more, previously LMC marques. Rover competed with Jaguar at the expensive end of the market, and Triumph with its family cars and sports cars against Austin, Morris and MG. The result was a product range which was incoherent and full of duplication. In addition, inconsequent attempts to establish British Leyland as a brand in consumers' minds in and outside the UK, print ads and spots were produced, causing rather confusion than attraction for buyers. This, combined with serious industrial relations problems (principally, the company's relations with hard-line trade unions of the time); the 1973 oil crisis; the three-day week; high inflation; and ineffectual management meant that BL became an unmanageable and financially crippled behemoth whose bankruptcy in 1975 was assured.

Sir Don Ryder was asked to undertake an enquiry into the position of the company, and his report, The Ryder Report, was presented to the government in April 1975. Following the report's recommendations, the organisation was drastically restructured and the Labour Government (1974–1979) took control by creating a new holding company British Leyland Limited (BL) of which the government was the major shareholder. The company was now organised into the following four divisions[1]:

  • Leyland Cars (later BL Cars) – the largest car manufacturer in the UK, employing some 128,000 people at 36 locations, and with a production capacity of one million vehicles per year.
  • Leyland Truck and Bus – the largest commercial and passenger vehicle manufacturer in the UK, employing 31,000 people at 12 locations, producing 38,000 trucks, 8,000 buses and 19,000 tractors per year
  • Leyland Special Products – the miscellaneous collection of other acquired businesses, itself structured into five sub-divisions:
  • Construction Equipment – Aveling-Barford, Aveling-Marshall, Barfords of Belton and Goodwin-Barsby
  • Refrigeration – Prestcold
  • Materials Handling – Coventry Climax (incorporating Climax Trucks, Climax Conveyancer and Climax Shawloader)
  • Military Vehicles – Alvis and Self-Changing Gears
  • Print – Nuffield Press (which printed the company's publications) and Lyne & Son
  • Leyland International – responsible for the export of cars, trucks and buses, and responsible for manufacturing plants in Africa, India and Australia, employing 18,000 people

In 1977 Leyland Cars was split up into Austin Morris (the volume car business) and Jaguar Rover Triumph (JRT) (the specialist or upmarket division). Austin Morris at first included MG but this marque was later transferred to JRT. Land Rover and Range Rover were later serperated from JRT to form the Land Rover Group.

In 1978 the company formed a new group for its commercial vehicle interests, BL Commercial Vehicles (BLCV) under managing director David Abell. The following companies moved under this new umbrella:

  • Leyland Vehicles Limited (trucks, tractors and buses)
  • Alvis Limited (military vehicles)
  • Coventry Climax Limited (fork lift trucks and specialist engines)
  • Self-Changing Gears Limited (heavy-duty transmissions)

BLCV and the Land Rover Group later merged to become Land Rover Leyland.

In 1979 British Leyland Ltd was renamed to simply BL Ltd (later BL plc) and its subsidiary which acted as a holding company for all the other companies within the group The British Leyland Motor Corporation Ltd to BLMC Ltd.

In 1982 most of the car division became the Austin Rover Group marking the end of the Morris and Triumph marques although Jaguar and Daimler remained in a separate company called Jaguar Car Holdings.

In 1984 Jaguar Cars became independent once more, through a public sale of its shares. In 1986 BL changed its name to Rover Group and in 1987 the Trucks Division - Leyland Vehicles merged with the Dutch DAF company to form DAF NV, trading as Leyland DAF in the UK and as DAF in the Netherlands. In 1987 the bus business was spun-off into a new company called Leyland Bus. This was the result of a management buyout who decided to sell the company to the Bus & Truck division of Volvo in 1988.

In 1988 the remaining Rover Group business was sold by the British Government to British Aerospace (BAe).

Many of the brands were divested over time and continue to exist to this day. The heir to most of the volume car business was MG Rover which went bankrupt in April 2005, although at least some of the range is expected to be relaunched in 2007.

[edit] Timelines

The rise and fall of British Leyland - the car companies and the brands
v  d  e
Marque 1900s 1910s 1920s 1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s 2007
Jaguar SS Cars Jaguar Jaguar BMH British Leyland Jaguar Ford
Daimler Daimler BSA BSA
Lanchester Lanchester
Mini BMC Austin

Rover

BAe BMW BMW MINI
Riley Riley Nuffield Organisation BMW
MG Morris Garages (MG) BMW MGR Nanjing
Morris Morris Morris
Wolseley Wolseley
Austin Austin Austin
Vanden Plas Vanden Plas Ford
Rover Rover Rover Rover BMW MGR Ford
Land Rover Ford
Alvis Alvis BAE Systems
Standard Standard Standard Triumph Leyland BMW Triumph
Triumph Dawson Triumph

[edit] Notes for the timeline table

  • The car brands of BSA were divested, BSA was not merged into Jaguar.
  • Mini was not originally a marque in its own right. See Mini and MINI (BMW) for more detail.
  • The BMC trademark is registered (1564704, E1118348) to MG Rover Group Ltd in the UK. BMC is also the name of a commercial vehicle manufacturer in Turkey, formerly the Turkish subsidiary of the British Motor Corporation. It is believed that Nanjing Automotive may have purchased this from MG Rover, however the brand has not been re-assigned as of 17 July 2006.
  • The Wolseley trademark is registered (UK 1490228) to MG Rover Group Ltd for automobiles only. It is believed that Nanjing Automotive may have purchased this from MG Rover, however the brand has not been -reassigned as of July 2006 to a different company. The UK building materials supplier Wolseley plc owns the rights to the Wolseley name for all other purposes. Wolseley plc is a descendant of the original Wolseley company.
  • The Vanden Plas trademark is owned by Ford (through Jaguar) for use within the USA and Canada, and as (UK 1133528, E2654481) to MG Rover Group Ltd for use in the rest of the world. It is believed that Nanjing Automotive may have purchased this from MG Rover, however the trademark has not been recorded as reassigned as of 17 July 2006. This is why Jaguar XJ Vanden Plas models are branded as Daimlers in Britain. The last Rover to use the Vanden Plas name was the Rover 75 Vanden Plas, a long wheelbase limousine model.
  • The Rover trademark was owned by BMW and was only licenced to MG Rover Group Ltd. BMW sold the brand to Ford in September 2006.
  • Alvis was purchased from British Leyland by United Scientific Holdings plc in 1981, in 2002 Alvis merged with part of Vickers Defence Systems to form Alvis Vickers which was purchased by BAE Systems in 2004. BAE Systems did not acquire Alvis through their ownership of Austin Rover Group / Rover Group in the early 1990s. Production of Alvis branded cars ceased in 1967. The trademark is owned by Alvis Vehicles Ltd
  • The use of the Triumph name as a trademark for vehicles is shared between BMW and Triumph Motorcycles Ltd. The former for automobiles and the latter for motorcycles. The motorcycle and car business separated in the 1930s.

[edit] Merged companies

The car firms (and car brands) which eventually merged to form the company are as follows.

The dates given are those of the first car of each name, but these are often debatable as each car may be several years in development.

[edit] Other merger events

Several of these names (including Jaguar, Land Rover and Mini) are now in other hands. The history of the mergers and other key events is as follows:

  • 1910 Daimler purchased by the armaments-and-motorbikes engineering company BSA
  • 1931 Lanchester purchased by BSA (last Lanchester 1956)
  • 1938 Morris incorporates Wolseley and Riley forming the Nuffield Organisation
  • 1944 Standard acquire Triumph, forming Standard Triumph
  • 1946 Austin acquire Vanden Plas
  • 1952 The Nuffield Organisation and Austin merge to form the British Motor Corporation (BMC)
  • 1960 Jaguar buy the car-making interests of BSA, including Daimler
  • 1961 Leyland Motors acquire Standard Triumph
  • 1963 Jaguar acquire the engine and fork lift truck manufacturing company Coventry Climax
  • 1965 Rover acquire Alvis
  • 1966 BMC merge with Jaguar to form British Motor Holdings (BMH)
  • 1967 Leyland absorb Rover
  • 1968 Leyland merge with British Motor Holdings to form the British Leyland Motor Corporation (BLMC)
  • 1972 BLMC take control of Innocenti
  • 1975 Publication of the Ryder Report, British Leyland effectively nationalised due to financial difficulties with new holding company formed British Leyland Ltd later BL plc with the government as the principal (but not the only) shareholder
  • 1977 Michael Edwardes appointed as Chairman by Labour Government. Begins massive cull of excess BL assets.

[edit] Divestments

  • 1975 Innocenti passed to Alejandro de Tomaso
  • 1978 Land Rover separated from Rover to form a separate company, still part of BL
  • 1979 Collaboration with Honda begins, sacking of Derek Robinson ("Red Robbo")
  • 1978 Closure of Triumph assembly plant in Speke - production moved to Canley
  • 1980 Closure of MG and Triumph assembly plants in Abingdon and Canley
  • 1981 Closure of Rover-Triumph plant in Solihull
  • 1981 Alvis sold to United Scientific Holdings
  • 1982 Michael Edwardes steps down as Chairman, BL Cars Ltd renamed Austin Rover Group (ARG)
  • 1984 Morris Ital goes out of production, signalling the end of the Morris badge
  • 1984 Jaguar floated off (including Daimler and the US rights to Vanden Plas); bought by Ford in 1989
  • 1986 BL plc renamed Rover Group, Austin badges disappear the following year
  • 1986 Leyland Bus floated off; bought by Volvo in 1988
  • 1987 Leyland Trucks division (including Freight Rover vans) merged with DAF to form DAF NV/Leyland DAF. Vans became independent as LDV in 1993, as did Trucks as Leyland Trucks. Leyland Trucks was taken over by US giant PACCAR in 1998 and integrated with Foden.
  • 1987 Unipart, BL's spare parts division acquired by management buy-out
  • 1988 Rover Group privatised; sold to British Aerospace
  • 1994 Rover Group sold to BMW; collaboration with Honda ends
  • 2000 BMW decides to break up and sell the Rover empire; Land Rover sold to Ford
  • 2000 BMW MINI, Triumph, and Riley trademarks retained by BMW, but BMW's other interests sold off
  • 2000 Remainder of company became independent as the MG Rover Group
  • 2005 MG Rover goes into administration with huge debts, and is taken over by Nanjing Automobile.
  • 2006 Ford acquires the rights to the Rover brand name from BMW, though without any immediate plans for using it on production cars.[2].

[edit] List of notable BL and BMC and related models (up to 1986)

[edit] Competing models

In some cases, British Leyland continued to produce competing models from the merged companies at different sites for many years. However, any benefits from the broader number of models were far outweighed by higher development costs and greatly reduced economies of scale.

[edit] Badge-engineered models

In contrast to the continued development of competing models, British Leyland continued the practice of badge engineering of models which had started under BMC; selling essentially the same vehicle under two (or more) different marques.

[edit] See also

[edit] Notes

  1. ^ BL Booklet - Graduate opportunities with British Leyland
  2. ^ "Rover brand name passes to Ford", BBC, 2006-09-19.

[edit] External links

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