Morgan Motor Company - The Car Maker's Journey into the 21st Century

            
 
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Case Details:

Case Code : BSTR201
Case Length : 16 Pages
Pages Period : 1910-2005
Organization : Morgan Motor Company
Pub Date : 2006
Teaching Note :Not Available
Countries : United Kingdom
Themes :Family-Owned Business | Business Environment
Industry : Auto and Ancillaries

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Morgan Announces 'Eco Car' Project Contd...

"If it succeeds, the project could help to solve one of the most challenging tasks facing the modern motor industry: how to keep making cars that are fun and fast while also meeting rapidly growing concerns over damage to the environment," wrote Sunday London Times.6

"We accept the problems of climate change and think that it would be irresponsible for any manufacturer not to act," said Charles Morgan, Managing Director of Morgan and project director of LIFEcar.7 Working on a path-breaking project like a new eco-car, required the trial of new, hitherto unexplored ways of working. This could generate a "quantum leap of technological development"8 for Morgan, which had a reputation of sticking to traditional car manufacturing systems. Morgan was the only car manufacturer in the early 21st century that had not been touched by automation and mass production. Even in the early 2000s, the company occupied the same building in which it was set up in the early 1900s and crafted its cars primarily by hand.

Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

It employed just over 100 people and its annual production was between 500 and 1000 -an infinitesimal number compared to auto giants like General Motors.

Background Note

In 1910, HFS Morgan, an engineer and former railway draughtsman, assembled a single-seater three-wheel vehicle called the 'Morgan Runabout' at his garage in Malvern Links in the Worcestershire district of England.

The Runabout was powered by a seven horsepower (hp) twin-cylinder Peugeot engine and the chassis was made at the Malvern College workshop by Stephenson Peach, who was then an engineering professor at the Malvern and Repton college. Initially, the Runabout was an experimental project and HFS Morgan had no plans to market it...

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6] Jonathan Leake, "Morgan engages eco-overdrive," The Sunday Times, June 19, 2005.

7] Jonathan Leake, "Morgan engages eco-overdrive," The Sunday Times, June 19, 2005.

8] Andrew Heasley, "Morgan to build earth-friendly sports car," The Age, September 29 2005.

 

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