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Suppose all the British investors are more interested in Futures or hedge funds rather than investing in British industry. Still, I'd rather see Italians take it over, at least they have empathy with cars, it could be worse, could be Chinese.
 

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To be honest, venture capitalists are the right people to own a make that people buy and sell, but nobody ever drives. They disappeared from the roads decades ago, to become exclusive pre-owned appreciating assets.
 

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Discussion Starter #4
Italian venture capitalists are probably regretting overspending on Aston Martin.
 

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Suppose all the British investors are more interested in Futures or hedge funds rather than investing in British industry. Still, I'd rather see Italians take it over, at least they have empathy with cars, it could be worse, could be Chinese.
Hi i have lived in Malvern not far from the Morgan factory all my life so i know a little about the long standing problems of Morgan. Very few family members are left on the board Charles Morgan the grandson of the founder was in charge until a few years ago, then he was made overseas ambassador, then their was a big dust up his car was taken off him and he was removed from the board. Not many people no why.
Morgan problems are simple, 'massive overheads (wage bill)' and not enough sales.
Could be worse you say Chinese!, well some one decided it would be a great idea to fit a Chinese engine in the new three wheeler(don't know if there still using it?). So the Aero 8 has a powerful BMW engine and the Three Wheeler a Chinese V Twin!. Just think of the sales if they had used a Harley V Twin sales in the USA would have been mental!.
For all the guys who work their i just hope the factory stays in the UK.
 

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So the Aero 8 has a powerful BMW engine and the Three Wheeler a Chinese V Twin!. Just think of the sales if they had used a Harley V Twin sales in the USA would have been mental!.
Three-wheeler engines are supplied by S & S, one of the best-known after-market Harley-Davidson tuning parts & engine suppliers & manufacturers in the US. I can't categorically say that they don't manufacture in China, but they have extensive manufacturing facilities in Wisconsin. I'd suggest that to most American motorcyclists S & S is as well-known & respected as H-D.
 

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Morgan problems are simple, 'massive overheads (wage bill)' and not enough sales.
If only it were that simple!

Wages paid to production workers are not overheads, they are direct costs. Along with parts & material, etc, they form the fixed cost of manufacturing a product. Overheads, fixed & variable, are the costs not directly related to the production of a product, such as salaries for non-productive workers, heating, phone bills, etc, etc.

It's much, much more complicated than that, so complicated that only accountants understand it, but basically you pay overheads whether you produce a lot or a little but you only pay direct costs in proportion to how much product you produce.

In the case of Morgan the manufacturing labour costs will be disproportionately high because of the method of construction. They could reduce their manufacturing costs at a small cost in tooling by making glass-fibre bodies. However, the effect of this on the final price of the vehicle wouldn't be great & they'd lose their "hand-built" image which is their big selling point. The last glass-fibre Morgan failed - more because it was "modern" than because it was glass-fibre!
 

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Actually the wages are not the issue at all. Morgan made 10% net profit last year. It's one of the most profitable car companies out there. The problem is investment in new models. They need big investment money and strategic alliance's. This deal gives them access to both.
 

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Please don't consider this a criticism of your post, cue2, because it's not. I was interested to read about the sale, but I do have to say that is a horrible, naggy, annoying website.

"TURN OFF YOUR AD BLOCKER!!!!"
"TAKE OUR QUIZ!!!"


How about no, I won't, I don't know your site, I don't know what kind of spammy ads you insert (or malicious code). I'm not in a demographic you care about (mainly due to geography) and I have no interest in adding my personal data to your advertisers' data collection pot.
 

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Discussion Starter #10
I had to look back to see which site I’d posted as a link and I thought I’d chose a reputable source from those covering the subject...
Charles Morgan got ousted when he wanted to develop new models , I’d thought. I believe he since went off to develop an electric car elsewhere. Perhaps they are cashing things in because of the lack of a succession plan and the family members are at an age where they just want to retire?
 

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cue2,
Thanks for that. :)
I was actually able to read the article (I keep a separate browser for sites like that one), and it is a reputable site (as far as I know).
I just think it's really bad reader interaction to drive a new viewer away (or to nag them to death) on first hit. I'm firmly of the belief that sites shold encourage readers (at least initially) to delve deeper and get them hooked on the content before slapping on the restrictions and convincing readers to sign up, deblock, etc.
 

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cue2,
Thanks for that. :)
I was actually able to read the article (I keep a separate browser for sites like that one), and it is a reputable site (as far as I know).
I just think it's really bad reader interaction to drive a new viewer away (or to nag them to death) on first hit. I'm firmly of the belief that sites shold encourage readers (at least initially) to delve deeper and get them hooked on the content before slapping on the restrictions and convincing readers to sign up, deblock, etc.
Just a couple of points to make!. I know many of the staff at Morgan some are long term friends. The Three Wheeler Engine crankcases are indeed marked S&S but come from China. Most of the cars are assembled and hand finished not like years ago when most of the cars were hand made on site. The metal body of the Three Wheeler is NOT made at the factory, like many other parts they are sourced elsewhere.
The costs involved with producing a new model are massive, when the Three Wheeler was launched their were many problems with the car. Cars were being returned to the factory on a regular basis sometimes from overseas, some of the problems continued for years, just ask the staff!. Morgan will continue to do well with their loyal following but will it stay in the UK?.
 

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The sensible thing for them to do would be to move production into the Aston Martin plant. Thereby sharing overheads and supply chain. Don't forget Aston Martin has full access to the Mercedes parts department.
 

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I've been on the factory tour and rented one of their Plus 4's for a day last year. Both wonderful experiences.

It is a very labour intensive production, that's for sure, but that is where their value is - in the handcrafted, built in a shed method. Whilst on the tour, the number of customers (many who looked like they were from overseas) being taken around seeing their car in build, chatting with the workers, choosing their paint and leather was incredible, and an experience you get with no other manufacturer. It is almost priceless I would suggest.

If I had the money, I would love to buy one and go through that experience.

The day I rented one was brilliant. A lovely drive around the Worcestershire/Herefordshire countryside, pub lunch in a style/method of transport from a bygone era, and which just can't be compared to any other modern car. I loved it - even spending half an hour, cleaning up all the oil in the engine bay after the dip stick blew out! Oil flying out of the bonnet louvres and onto the windscreen all added to the fun!

I truly hope they stick with the model that has served them well over the decades and not be tempted into making a fast buck. As mentioned above, they are apparently extremely profitable (on a relative % basis), just needs deeper pockets to help fund new models.

Incidentally, an electric drive train would remove in one fail swoop what made the car special for me.

Have also driven the hilarious 3 wheeler a few years ago, and was extremely tempted to buy one. Totally inpractical, but incredible fun and so far removed from the dross of reality.

Good luck Morgan - the motoring world needs you!
 

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I've been on the factory tour and rented one of their Plus 4's for a day last year. Both wonderful experiences.
Me too. Never before have total stangers chatted to me while stopped at traffic lights. But whilst great fun, the car is utterly impractical

The workforce seem to be petrol heads, with a eclectic range of cars in the car park (including quite a few Alfas)

Good luck Morgan - the motoring world needs you!
+1
 

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Having driven for the first time through the delightful spa town of Malvern only yesterday, i'm also thinking of doing the factory tour and hiring one of their models.

One of my favourites is the Aero 8 coupe which is a beautiful design, like a 30s Bugatti recreation.
Can only hope the new owners don't change Morgan too much, their timeless appeal is being stuck in the past
 

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My uncle had a Plus Four as his daily driver way back in the fifties. You couldn't have told him (or me, its very small passenger) it was impractical. Inadequate weather protection and no storage? No worse than his AJS motorbike.
 
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