The BMC Story
BMC was born out of an amalgamation of two already huge
concerns, Nuffield Motors (Morris) and Austin in 1952. To be fair
it was more of a takeover of Morris by Austin, the latter
continuing to have more influence throughout the BMC term and on
into BL (British Leyland) days.
Perhaps as some consolation to the Nuffield school, many of
the Austin managers were ex - Nuffield men and this probably
helped the coming together. Indeed Lord Austin had died 11 years
prior to the merger and William Morris (Lord Nuffield) was still
alive, albeit 75 years old. Lord Nuffield was made President of
BMC, but the post of Chairman and Managing Director went to the
then head of Austin, Leonard Lord.
Both manufacturers had their own separate infrastructures of
course, and the formidable task of unifying the two must have
been a daunting challenge. In some ways, the decision was taken
to opt for the safe middle ground by keeping the whole operation
very much as it had been by rationising the ranges by 'badge
engineering' what were essentially the same cars.
It is true to say that in the 1950's, the generation buying
cars at that time were faithful to certain marques (and models to
an extent) and by pandering to their needs, BMC planned to
maintain market share. The drive to export was still strong since
the post war austerity days and a good percentage of production
was heading for more distant shores.
As the 50's progressed, BMC was beginning to get a reputation
for producing stuffy and uninspiring cars. To counter this, the
services of the Italian Pininfarina design house were enlisted to
inject some life into the next generation of models. In September
1958, the first car so designed appeared on the market, the
'Farina' A40. Powered by the enlarged 948cc 'A' series engine,
the car was of the 'two box' format, refering to it's appearance
in profile. The Morris Oxford IV and all it's badged cousins also
appeared in the late 50's to reaffirm the new Farina look.
It may be possible to peg some of the fundamental problems
that dogged the British car industry at this point, since from a
relatively uncomplicated range at the outset, models were now
beginning to overlap within a single marque (A35/A40) and were
also becoming uncompetitive - the Farina Oxford/Cambridge were
well under powered and ponderous and were not well received by
press and public alike.
During the last half of the decade, there was one project
which was born partly out of the fuel shortage brought on by the
Suez Crisis and partly by the a passion for smaller cars. Having
produced the successful Minor in 1948, Alec Issigonis had again
been busy and in an impressively short development period
launched the timeless Mini on the world.
Dealer rivalry still prevailed and was compounded even further
when the car was announced as an Austin Seven before subsequently
being badged as a Morris Mini Minor to satisfy everyone. BMC
management was now creaking at the seems trying to manage it's
empire, endeavouring to hold the UK operation together as well as
newer plants in Europe and Australia. The diverse nature of
marques and models compounded this although signs were beginning
to appear that BMC was trying to sort out the mess.
The plan was to provide a cohesive range of models with which
to address the key parts of the market. The next step toward this
goal was the Issigonis/Farina designed 1100 which continued to
enjoy great success well into the Leyland days. Next was the 1800
which probably missed the market slot it was intended for by
being a little too large, too heavy and wrongly perceived through
poor marketing. Overall it wasn't a bad car, if somewhat
uninspiring. By now the swinging 60's had arrived and whilst the
Mini became a 'scene' car, BMC had become ponderous and was
losing touch with the market.
In line with earlier policy, the next model up from the 1800
had been designed to address the more upmarket sector. To say
this car had a lukewarm reception is overstating the point. The
'3 litre' effectively used the centre section of the 1800 and had
extended front and rear cavities to accommodate the larger engine
and to provided more boot space - or was it just so it looked
bigger? The net result was a car that had no more room than the
1800, went little faster, used more fuel and cost more to boot.
The car was if anything a telling statement on the health of
BMC at launch in 1967. The company was fighting a rearguard
action to compete with the likes of Ford who were far more
dynamic in their assault on the market. That isn't to say that
BMC didn't still have a sizeable share of the market, but the
company had no new products of note to offer for the 70's and
still had cars in production that should have been phased out
years before.
In 1968, the company became British Leyland after a short
period in limbo as British Motor Holdings and gradually
transformed into what it is today, the Rover Group, a part of
BMW.
It is interesting to speculate about how BMC could have become
a world player today in it's own right. A lot of what has been
written about the ultimate demise of the UK car industry looks at
the symptoms rather than the actual problem. One can point a
finger at 'Red' Robbo (Union leader) or Sir Michael Edwards (BL
Chief exec.) or one of many figureheads within the organisation.
As the 50's drew to a close, other players were moving into
the market and they were starting to offer cars which should have
set the warning bells ringing in BMC. The buying public was also
getting more discerning, partly as a result of this, and partly
because the more free and easy culture of the 60's was starting
to assert itself. BMC couldn't rely on customer loyalty alone to
carry them through.
The choice of cars was also becoming rather confusing and if
it wasn't for the niche and the 'feel good' factor created by the
Mini the demise may have come much sooner. The Mini certainly was
British innovation at it's finest, but did not initially form
part of any coherent strategy.
Scant regard was given to costs, and margins appear to have
been insufficient to enable proper reinvestment in new models
notwithstanding the inefficiencies in the organisation. Companies
such as Ford meantime, were homing in on the UK market more and
more and steadily reducing the whole 'concept to market cycle'
enabling them to be more dynamic and hence responsive.
That's not to say that other manufacturers didn't have their
problems of course. Look at the rust problems Vauxhall had in the
50's and 60's, likewise Renault with their Dauphine. In a
nutshell, BMC was engineering driven and autocratic, more
concerned with internal politics than the outside world.
Finally, BMC's policy of letting the customer finish the final
testing of the vehicle was a sign of a company definitely out of
control. But even reliability issues were probably a symptom of
the chaotic nature of BMC, something which continued unabated
into BL days. The Maxi was a prime example of this, the press
having a field day pulling the car to bits at launch, but
ultimately proving to be a satisfactory car 10 years later when
withdrawn from production - too late by far.
How could BMC have done it better? From a product perspective
they should have rationalised the range early on to form a
tangible thread running through the line. The Minor should have
been dropped as the 1100 was launched and the Farina
Oxford/Cambridge range never built, or leastways dropped when the
1800 was launched. Even then, many marque/model issues would
still have existed but at least the picture would have been
clearer.
Proper reinvestment would also have been possible had margins
been greater and a healthier company would have attracted more
money from investors too. Even then, no-one could say that the
company would not have been ripe for acquisition from foreign
companies - we do seem rather good in this country of selling the
family china.
Also, reviewing the distribution/dealer tiers would have
helped since it appears that many model decisions were taken on
the strength of gut reaction from this network rather than proper
market intelligence. The historical issue of separate Morris and
Austin dealers should certainly have been sorted out at an early
stage since BMC policy seems to have been driven too much by this
arrangement.
So what we have now is a number of small car makers addressing
niche markets. But, then again, perhaps that's what we're good
at......... Personally? I have to say that there is something
about the cars that oozes character and at the same time embodies
a certain quaint Britishness - not in a jingoistic way but as a
reminder to us of our engineering heritage. Whether you own a
practical 1100 or an impractical 3 Litre, enjoy.
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