1968–1974: Creation of BLMC, and the Stokes era BLMC was founded on 17 January 1968 by the merger of
British Motor Holdings (BMH) and
Leyland Motor Corporation (LMC), encouraged by
Tony Benn as chairman of the Industrial Reorganisation Committee created by the
first Wilson Government. The seven divisions were: •
Austin-Morris; the volume car division made up entirely of the former British Motor Corporation marques (Austin, Morris, MG, Riley and Wolseley), as well as Austin and BMC branded light commercial vehicles. •
Specialist Division; the sports/luxury marques (Rover, Land Rover, Alvis, Triumph and Jaguar – the latter having moved across from the old BMC/BMH organisation). •
Leyland Truck and Bus; the original Leyland commercial vehicles business. •
Pressed Steel Fisher (PSF); had its origins in the
Pressed Steel Company which had been a BMH subsidiary that made car body shells for both BLMC and other manufacturers. •
Overseas; made up largely of BLMC's satellite car manufacturing operations around the world – many of these had been inherited from BMH. •
Construction Equipment •
General Engineering & Foundries While BMH was the UK's largest car manufacturer (producing over twice as many cars as LMC), it offered a range of dated vehicles, including the
Morris Minor which was introduced in 1948 and the
Austin Cambridge and
Morris Oxford, which dated back to 1959. Although BMH had enjoyed great success in the 1960s with both the
Mini and the
1100/1300, both cars were infamously underpriced and despite their pioneering but unproven
front wheel drive engineering, warranty costs had been crippling and had badly eroded those models' profitability. After the merger, Lord Stokes was horrified to find that BMH had no plans to replace the elderly designs in its portfolio. Also, BMH's design efforts immediately prior to the merger had focused on unfortunate niche market models such as the
Austin Maxi (which was underdeveloped and with an appearance hampered by using the doors from the larger
Austin 1800) and the
Austin 3-litre, a car with no discernible place in the market. The lack of attention to the development of new mass-market models meant that BMH had nothing in the way of new models in the pipeline to compete effectively with popular rivals such as Ford's
Escort and
Cortina. Immediately, Lord Stokes instigated plans to design and introduce new models quickly. The first result of this crash programme was the
Morris Marina in early-1971. It used parts from various BL models with new bodywork to produce BL's mass-market competitor. It was one of the strongest-selling cars in the United Kingdom in the 1970s; being the second-most popular new car sold in Britain in 1973; though by the end of production in 1980 it was widely regarded as a dismal product that had damaged the company's reputation. The
Austin Allegro (replacement for the 1100/1300 ranges), launched in 1973, gained a similar reputation over its ten-year production life. The company became an infamous example of the industrial turmoil that plagued the United Kingdom in the 1970s. Action by unions frequently crippled BL manufacturing. Despite the duplication of production facilities as a result of the merger, there were multiple
single points of failure in the company's production network which meant that a strike in a single plant could stop many of the others. Domestic rivals
Ford and
General Motors mitigated against this by merging their previously separate British and German subsidiaries and product lines (Ford combined
Ford of Britain and
Ford Germany to create
Ford of Europe, whilst GM eventually merged the operations of
Vauxhall and
Opel), so that production could be sourced from either British or Continental European plants in the event of industrial unrest. The upshot was that both Ford and Vauxhall ultimately overtook BL to become Britain's two best-selling marques. At the same time, a tide of Japanese imports, spearheaded by
Nissan (Datsun) and
Toyota exploited both BL's inability to supply its customers and its declining reputation for quality. Continental carmakers including
Fiat,
Renault and
Volkswagen were also achieving strong sales on the British market. By the end of the 1970s, the British government had introduced
protectionist measures in the form of import quotas on Japanese manufacturers to protect the ailing domestic producers (both BL and
Chrysler Europe), which it was helping to sustain. At its peak, BLMC owned almost forty manufacturing plants across the country. Even before the merger, BMH had included theoretically competing marques that were in fact selling substantially similar
badge engineered cars. The British Motor Corporation had never properly integrated either the dealer networks or the production facilities of
Austin and
Morris. This had been done partly to appease poor industrial relations, as decades old rivalries between Austin and Morris workers at Longbridge and Cowley respectively, had persisted after the 1952 merger and creation of BMC. The upshot was that both plants were producing badge engineered models of otherwise identical Austin and Morris cars so that each dealer network would have a product to sell. This meant that Austin and Morris still, to an extent, competed with each other and meant that each product was saddled with effectively twice the logistics, marketing and distribution costs that it would have if sold under a single name or if production of a single model platform was concentrated in one factory. Although BL
did eventually end the wasteful double sourcing – for example production of the Mini and the
1100/1300 was concentrated at
Longbridge, whilst the 1800 and
Austin Maxi ranges moved to
Cowley, the production of sub-assemblies as well as component suppliers were scattered all over the Midlands which greatly increased the cost of keeping the factories running. BMH and Leyland Motors had expanded and acquired companies throughout the 1950s and 1960s which were in direct competition with each other, with the result that when the two conglomerates were brought together into BL there was even more internal competition. 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. Internal politics became so bad that one marque's team would attempt to derail another marque's programmes. Individual model lines that were similarly sized were therefore competing against each other, yet were never discontinued nor were model ranges rationalised quickly enough; in fact, the policy of having multiple models competing in the same market segment continued long after the merger – for instance BMH's
MGB remained in production alongside LMC's
Triumph TR6, the
Rover P5 competed with the
Jaguar XJ, whilst in the medium family sector, the
Princess was in direct competition with upscale versions of the
Morris Marina and
Austin Maxi, meaning that
economies of scale resulting from large production runs could never be realised. In addition, in consequent attempts to establish British Leyland as a brand in consumers' minds in and outside the UK, print ads and spots were produced, causing confusion rather than attraction for buyers. BL marketing and management attempted to draw more obvious distinctions between the marques – most notable was the decision to pitch Morris as a maker of conventional mass-market cars to compete with
Ford and
Vauxhall and Austin to continue BMC's line of advanced family cars with front-wheel drive and fluid suspension. This resulted in the development of the
Morris Marina and the
Austin Allegro. The policy's success was mixed. Since the dealership network was still not sufficiently rationalised it meant that Austin and Morris dealers (which had, in BMC/BMH days, each offered a full range of cars both advanced and traditional) had their product range halved and found that they could no longer cater to many previously loyal customers' tastes. The policy was also carried out haphazardly: The advanced,
Hydragas-sprung
Princess began life in 1975 sold as an Austin, a Morris and a Wolseley before being rebadged altogether under the new Princess name. The Princess (and the
Mini, which BL also turned into a marque in its own right) was sold across the Austin-Morris dealership network, making any distinction between the two even more vague to many customers. Critically, the new models that had been introduced by BLMC failed to sell in high enough quantities outside of the home market, despite the UK now being a part of the
European Economic Community – with the Allegro and Princess, in particular, having been tailored for European tastes. However, both these vehicles were saloons when the trend in Europe was moving towards family-sized hatchbacks, typified by the
Volkswagen Golf in 1974 and the
Simca 1307 (Chrysler Alpine) in 1975. The company also wasted much of its scant funds on
concepts, such as the Rover P8 or P9, that never entered production to earn income for the company. These internal issues, which were never satisfactorily solved, combined with serious industrial relations problems with trade unions, the
1973 oil crisis, the
three-day week, high inflation and ineffectual management meant that BL became an unmanageable and financially crippled behemoth. "Following a disastrous couple of years in the marketplace, by the end of 1974 BLMC was on the brink of bankruptcy. Its financial backers – the City banks – had become very nervous about its future, and persuaded Lord Stokes to approach Tony Benn for financial assistance."
1975–1982: Collapse, the Ryder Report and the Edwardes era Sir Don Ryder was asked to undertake an enquiry into the position of the company, and
his report was presented to the government in April 1975. Following Ryder's recommendations, the organisation was drastically restructured and the
Labour Government created a new holding company, British Leyland Limited (BL), of which it was the major shareholder, effectively nationalising the company. Between 1975 and 1980, these shares were vested in the
National Enterprise Board which had responsibility for managing this investment. The original seven divisions of the company were now reorganised into four: •
Leyland 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 (including a joint venture with the
National Bus Company), and 19,000 tractors per year. The tractors were based on the
Nuffield designs, but built in a plant in
Bathgate, Scotland. •
Leyland Special Products – the miscellaneous collection of other acquired businesses, itself structured into five sub-divisions: • Construction equipment –
Aveling & Porter, 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. There was positive news for BL at the end of 1976 when its new
Rover SD1 executive car was voted
European Car of the Year, having gained plaudits for its innovative design. The SD1 was actually the first step that British Leyland took towards rationalising its passenger car ranges, as it replaced two cars competing in the same sector, the
Rover P6 and
Triumph 2000. More positive news for the company came at the end of 1976 with the approval by Industry Minister
Eric Varley of a £140,000,000 investment of public money in refitting the
Longbridge plant for production of the company's "ADO88" (Mini replacement), due for launch in 1979. However, poor results from customer clinics of the ADO88, coupled with the UK success of the
Ford Fiesta, launched in 1976, forced a snap redesign of ADO88 which evolved into the "LC8" project – eventually launched as the
Austin Mini Metro in 1980. In 1977,
Michael Edwardes was appointed chief executive by the NEB. Edwardes embarked on a massive restructuring of the beleaguered conglomerate, selling off many of its non-core businesses such as Prestcold and Coventry Climax. Edwardes also took on the militant unions head-on, culminating in the dismissal of chief shop steward
Derek Robinson in 1979, who had been seen as the perpetrator of much of the strikes and industrial unrest that had crippled the company throughout the decade. Edwardes quickly reversed the Ryder Report's policy of giving prominence to the "Leyland" brand, and returned focus back to the individual brands, resulting in the creation of two new completely autonomous subsidiaries: •
BL Cars Ltd - the volume cars business, which consisted of two sub divisions; namely: •
Austin-Morris - encompassing the mainstream brands Austin, Morris and sports car brand MG. •
Jaguar-Rover-Triumph' (JRT) - the specialist or upmarket division. Jaguar (including the
Daimler) brand) regained much of its independence under former Unipart CEO
John Egan, preparing it for its eventual demerger from BL in 1984. •
Land Rover Group Ltd - Land Rover (and
Range Rover) were split away from Rover itself and became a completely autonomous entity, with Rover car production moved out of Solihull by 1982, which was repurposed as a Land Rover-only plant. In that same period, the commercial vehicles arm of Austin-Morris (which consisted solely of the
Sherpa range of light vans), would become part of the wider
Land Rover Group and was now known as
Freight Rover. At the same time the public use of the "British Leyland" name ceased due to its negative connotations, being abbreviated simply to "BL", whilst the company's "hurricane" logo was redesigned with the central "L" removed. The Austin-Morris division was given its own unique brand identity with the introduction of the blue and green "chevron" logo, which was later expanded in use when the car manufacturing operations were further consolidated into the Austin Rover Group in the 1980s. In 1978, the company was the subject of an important legal development concerning
corporate civil liability. In the case of
Walton v British Leyland, the court held Leyland liable for negligence owing to a design defect in the wheel bearings of their new model of the Allegro. The company were aware of the issue but had decided against a recall.
BLCV 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 (military vehicles) •
Coventry Climax (fork lift trucks and specialist engines) •
Self-Changing Gears (heavy-duty transmissions) BLCV and the Land Rover Group later merged to become
Land Rover Leyland. In December 1978, British Leyland Limited was renamed BL Limited and its subsidiary, which acted as a
holding company for all the other companies within the group. The British Leyland Motor Corporation Limited was renamed BLMC Limited at the same time. BL's fortunes took another much-awaited rise in October 1980 with the launch of the
Austin Metro (initially named the Mini Metro), a three-door hatchback that gave buyers a more modern and practical alternative to the iconic but ageing Mini. This went on to be one of the most popular cars in Britain in the 1980s. Towards the final stages of the Metro's development, BL entered into an alliance with
Honda to provide a new mid-range model to replace the ageing
Triumph Dolomite, and more crucially to be a stop-gap until the
Austin Maestro and
Montego were ready for launch. This car emerged as the
Triumph Acclaim in 1981, and became the first of a long line of collaborative models jointly developed between BL and Honda. At the same time, Leyland Trucks introduced the
Landtrain, the first in a series of vehicles developed specifically for export markets. A rationalisation of the model ranges also took place around this time. In 1980, British Leyland was still producing three cars in the large family car sector—the
Princess 2,
Austin Maxi and
Morris Marina. The Marina was succeeded by the
Morris Ital in July 1980 following a superficial facelift, and a year later the Princess 2 received a major upgrade to become the
Austin Ambassador, meaning that the 1982 range had just two competitors in this sector. In April 1984, these cars were discontinued to make way for a single all-new model, the Austin Montego. The Acclaim was replaced in that same year by another Honda-based product, the
Rover 200-series. The MG factory at
Abingdon and Triumph factory at
Canley were both closed in 1980.
1982–1986: Edwardes steps down, Jaguar divested, Austin Rover Group By the end of Michael Edwardes' tenure as chairman of BL plc in 1982, the company had been restructured into two parts – the Cars Division (which consisted of Austin-Morris, Rover and Jaguar, and was led by
Ray Horrocks) and the Commercial Vehicle Division (which consisted of Land Rover, Leyland Trucks, Leyland Buses and
Freight Rover) – whose chief executive was David Andrews. The holding company BL plc was now chaired by
Austin Bide in a non-executive capacity. Around this time, the
BL Cars Ltd subsidiary renamed itself
Austin Rover Group, shortly before the launch of the Austin Maestro and Ray Horrocks was replaced by
Harold Musgrove as its chairman and chief executive. The emergence of the Austin Rover brand was intended to give a new public face to the company (with the 'Leyland' and 'BL' names fading from public view), although the conglomerate's holding company was still known as "BL plc". The creation of Austin Rover also dispensed with the separate
Austin-Morris and
Jaguar-Rover-Triumph divisions, since by this time, Jaguar now resided in a separate company called Jaguar Car Holdings and was now led by
Sir John Egan, and this was later de-merged from BL completely and privatised in 1984. That same year, with both the Morris Ital and the Triumph Acclaim being discontinued, their respective brands were effectively shelved, leaving only the Austin and Rover marques, whilst Land Rover moved into the
Freight Rover Group alongside the light trucks division. After the divestment of Unipart and the van, truck and bus divisions in 1987 (see below), leaving just two subsidiaries – Austin Rover (volume cars) and Land Rover (SUVs) this essentially remained the basic structure of BL and subsequently the Rover Group until the 2000 break-up.
Renaming to Rover Group and Land Rover's eventual sale to Ford In 1986,
Graham Day took the helm as chairman and CEO and the third joint Rover-Honda vehicle – the
Rover 800-series – was launched which replaced the ten-year-old
Rover SD1. Around the same time, 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. That same year, the British government controversially tried to privatise and sell-off
Land Rover, however this plan was later abandoned. The Austin name was dropped from the Metro, Maestro and Montego by 1988, signalling the end for the historic Austin marque, in a push to focus on the more prestigious (and potentially more profitable) Rover badge. In 1988, the business was sold by the British government to
British Aerospace (BAe), and shortly afterwards shortened its name to just Rover Group. It subsequently sold the business to
BMW, who, after years of investment that ultimately resulted in huge losses, decided to break up the Rover Group, and only retain the
Cowley operations and the rights to manufacture the new
MINI family of vehicles.
Land Rover was divested to
Ford, who integrated it with its
Premier Automotive Group (of which Jaguar was already a part, therefore reuniting the two former BL stablemates), whilst the remains of the volume car business, including the massive Longbridge complex, became the newly independent
MG Rover, which collapsed in 2005. However, after suffering severe financial problems and teetering on the edge of bankruptcy, Ford decided to dissolve its Premier Automotive Group, and sold off most of its brands, with Jaguar and Land Rover being sold to the
Indian automaker
Tata Motors by the end of 2008. The only automotive manufacturing operations of British Leyland that survive today are MINI, Jaguar Land Rover, and Leyland Trucks. Many of the brands were
divested over time and continue to exist on the books of several companies to this day. In total, the British Government had invested over £3 billion (not adjusted for inflation) attempting to rescue British Leyland from bankruptcy.
Ashok Leyland truck in India Until the 1980s, the Leyland name and logo were seen as a recognised and respected marque across India, the wider subcontinent and parts of Africa in the form of
Ashok Leyland, a company formed from the partnership of the Ashok group and British Leyland. However, now the company has been largely Indian in its ownership for over three decades. A part of the
Hinduja Group since 1987, Ashok Leyland manufactures buses, trucks, defence vehicles and engines. The company is a leader in the heavy transportation sector within India and has an aggressive expansionary policy. In 2010, Ashok Leyland purchased a 25% stake in UK-based bus manufacturer
Optare, a direct descendant of Leyland's UK bus-making division. This stake was gradually increased to 99%. In November 2020, Ashok Leyland announced that
Optare would be rebranded as
Switch Mobility. After British Leyland became
Austin Rover in 1982, a version of the
Rover SD1 was built under licence in India as the Standard 2000 from 1985 to 1988, briefly reviving the
Standard brand which had been axed in 1968. British Leyland also provided the technical know-how and the rights to their Leyland 28 BHP tractor for
Auto Tractors Limited, a tractor plant in Pratapgarh, Uttar Pradesh. Established in 1981 with state support, ATL only managed to build 2,380 tractors by the time the project was ended in 1990 – less than the planned production for the first two years. The project ended up being taken over by
Sipani, who kept producing tractor engines and also a small number of tractors with some modest success. ==Timelines==