106-560: British Leyland was a British automotive engineering and manufacturing conglomerate formed in 1968 as British Leyland Motor Corporation Ltd ( BLMC ), following the merger of Leyland Motors and British Motor Holdings . It was partly nationalised in 1975, when the UK government created a holding company called British Leyland, later renamed BL in 1978. It incorporated much of the British-owned motor vehicle industry, which in 1968 had
212-429: A market inefficiency , which undervalues the true strength of these stocks. In her 1999 book No Logo , Naomi Klein provides several examples of mergers and acquisitions between media companies designed to create conglomerates to create synergy between them: A relatively new development, Internet conglomerates, such as Alphabet , Google's parent company belong to the modern media conglomerate group and play
318-480: A 1,485 cc (90.6 cu in), E-Series petrol engine which would later be used in other British Leyland products, such as the Austin Allegro . The 1750 and twin-carburettor 1750 HL models, added to the range in 1971, offered good performance by the standards of the era, with a top speed of 97 mph (156 km/h), while the smaller-engine version could exceed 90 mph (140 km/h). Despite
424-521: A 40% share of the UK car market, with its history going back to 1895. Despite containing profitable marques such as Jaguar , Rover , and Land Rover , as well as the best-selling Mini , BLMC had a troubled history, leading to its eventual collapse in 1975 and subsequent part-nationalisation. After much restructuring and divestment of subsidiary companies, BL was renamed the Rover Group in 1986, becoming
530-571: A Maxi as their "Fab-Mobile" decked out in Punk-art graffiti. It also made an appearance in a video of The Farm's cover version of The Human League's "Don't You Want Me". The 1750 was registered as FRK 315T and according to the DVLA website was last taxed in April 1993. The Maxi, grumbled AC/DC singer Brian Johnson , "was like a matchbox on steroids . The only reason you knew it was a car was cos it had
636-482: 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
742-498: 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." 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,
848-486: A disorienting and demoralizing experience for executives at acquired companies—those who were not immediately laid off found themselves at the mercy of the conglomerate's executives in some other distant city. Most conglomerates' headquarters were located on the West Coast or East Coast , while many of their acquisitions were located in the country's interior. Many interior cities were devastated by repeatedly losing
954-549: A focus in Asia.) In Japan, a different model of conglomerate, the keiretsu , evolved. Whereas the Western model of conglomerate consists of a single corporation with multiple subsidiaries controlled by that corporation, the companies in a keiretsu are linked by interlocking shareholdings and a central role of a bank. Mitsui , Mitsubishi , Sumitomo are some of Japan's best-known keiretsu, reaching from automobile manufacturing to
1060-638: A global presence and a diversified portfolio of products and services. Conglomerates can be formed by merger and acquisitions , spin-offs , or joint ventures . Conglomerates are common in many countries and sectors, such as media , banking , energy , mining , manufacturing , retail , defense , and transportation . This type of organization aims to achieve economies of scale , market power, risk diversification , and financial synergy. However, they also face challenges such as complexity, bureaucracy , agency problems, and regulation . The popularity of conglomerates has varied over time and across regions. In
1166-476: A hatchback until the early 1980s. One unusual feature of this car was that the rear seat back, as well as folding forward as in a conventional hatchback, also folded back. In combination with fully-reclining front seats, this gave satisfactory, if spartan, sleeping accommodation. Towards the end of the Maxi's life, in 1980, a lightly revised model was marketed as the "Maxi 2", although by now sales were declining and
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#17328008900871272-456: A hospital stay in Golspie's Lawson Memorial Hospital for five days where he was treated by Dr. Michael Simpson. After they returned to London, Lennon arranged for the Maxi to be placed on a plinth outside his Tittenhurst home as an homage to their luck, where it stayed for the next few years, during which time Julian took the silver apple from the dash and kept it as a keepsake, though the vehicle
1378-544: A major role within various industries, such as brand management . In most cases, Internet conglomerates consist of corporations that own several medium-sized online or hybrid online-offline projects. In many cases, newly joined corporations get higher returns on investment , access to business contacts, and better rates on loans from various banks. Similar to other industries many companies can be termed as conglomerates. Austin Maxi The Austin Maxi
1484-414: A million were built over a 12 year period. BL management decisions involving the Maxi had significant knock-on effects to the rest of the car line-up. BL marketing decreed that the Maxi should be the only car in the range to feature a hatchback . This stance prevented the Austin Allegro and Princess models gaining hatchbacks despite those designs being capable of receiving them. The Maxi (code name ADO14)
1590-746: A new car to succeed the Allegro and Maxi was being developed. Its launch was delayed by the extra investment required to develop the Austin Metro , launched in October 1980. On 8 July 1981, the Austin Maxi's 12-year production run came to an end. Its replacement, the Austin Maestro , which also replaced the smaller Allegro, was introduced in March 1983. Shortly after the Maxi's demise, BL met
1696-423: 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
1802-718: A raft of new hatchback models. The Austin Metro, launched in 1980, was only available as a hatchback, as was the 1983 Austin Maestro. On 1 July 1969, John Lennon crashed a white Maxi on the single track A838 road near Loch Eriboll in the Highlands of Scotland. He was on his way to visit his uncle in Durness with Yoko Ono, his son Julian and Yoko's daughter Kyoko. Originally they had set off from Tittenhurst Park, his home near Ascot in his Mini Cooper, however it soon became apparent that it
1908-467: 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. Now a part of the giant Hinduja Group , Ashok Leyland manufactures buses, trucks, defence vehicles and engines. The company
2014-480: A saloon version the "Morris 1500" was to follow in the autumn. However, upon the merger of BMC and Leyland the new management abandoned the four-door saloon notchback and developed the Morris Marina instead. The Marina, launched in April 1971, was a rear-wheel drive car available as a saloon, coupe or estate. The new chairman Lord Stokes decided to also change the hatchback's name to the Maxi in homage to
2120-619: 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. By the end of Michael Edwardes' tenure as chairman of BL plc in 1982, the company had been restructured into two distinct parts – the Cars Division (which consisted of Austin-Morris, Rover and Jaguar, and
2226-538: A small number of tractors with some modest success. The car marques inherited by the company are as follows. The dates given are those of the first car of each marque, but these are often debatable as each car may be several years in development. 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. Pre-BL: As BL: As BL: Post-BL: As BL: Post BL: In some cases, British Leyland continued to produce competing models from
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#17328008900872332-639: A small slice of many companies in a fund rather than owning shares in a conglomerate. Another example of a successful conglomerate is Warren Buffett 's Berkshire Hathaway , a holding company which used surplus capital from its insurance subsidiaries to invest in businesses across a variety of industries. The end of the First World War caused a brief economic crisis in Weimar Germany , permitting entrepreneurs to buy businesses at rock-bottom prices. The most successful, Hugo Stinnes , established
2438-540: A spacious interior, comfortable passenger accommodation, competitive prices and reasonable running costs. It was let down by a dull interior and poor build quality, although it was not as notorious for its failings as the Austin Allegro and Morris Marina were during the 1970s. The Maxi had several rivals during the 1970s, including the Volkswagen Passat (1973) and Chrysler Alpine (1975), although its best-selling rivals from Ford and Vauxhall did not produce
2544-680: A step closer to reconnecting with its British heritage, as Optare is a direct descendant of Leyland's UK bus-making division. During the time of British Leyland's transition into Austin Rover during the 1980s, a version of the Rover SD1 was licence built 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
2650-589: A stop-gap until the Austin Maestro and Montego were ready for launch. This car would emerge as the Triumph Acclaim in 1981, and would be 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
2756-613: A subsidiary of British Aerospace from 1988 to 1994, then was subsequently bought by BMW . The final surviving incarnation of the company as the MG Rover Group went into administration in 2005, bringing mass car production by British-owned manufacturers to an end. MG and the Austin , Morris and Wolseley marques became part of China's SAIC , with whom MG Rover attempted to merge prior to administration. As of 2024, Mini , Jaguar Land Rover , Leyland Trucks , and Unipart are
2862-584: A television advert shown across West Germany, Switzerland and Austria. Also in 1972, at the Earl's Court Motor Show a competition was staged by The Daily Telegraph , the Institute of British Coachbuilders and Motor Manufactures (later incorporated into the Society of Motor Manufacturers and Traders ) to design a futuristic concept car based on a Maxi. The winning design was by a young designer, Chris Field, and
2968-532: A time when curvaceous American-inspired " coke bottle " styling (typified by contemporaries such as the Ford Cortina Mk III and Hillman Avenger ) was very much in vogue, contrasting sharply with the Maxi's obviously mid-1960s looks. Another styling ambition for the car was a four-door saloon version, to compete directly with the Ford Cortina . A prototype was built, badged as a Morris, but it
3074-608: A top award as 'Best Feature' at the 2017 Bauer Awards. In 1972, a married couple escaped the Soviet quarter of Berlin at Checkpoint Charlie in the back of a Maxi. Once over into the western sector, the British Royal Military Police and the West German Polizei were so surprised that two people could fit into a Maxi's boot, that it was then taken up by Leyland West Germany and re-created in
3180-786: Is a leader in the heavy transportation sector within India and has an aggressive expansionary policy. In 1987, the UK-based Hinduja Group bought the India-based Ashok Leyland company. Today, Ashok-Leyland is pursuing a joint venture with Nissan and through its acquisition of the Czech truck maker, Avia , is entering the European truck market directly. With its purchase, in 2010, of a 25% stake in UK-based bus manufacturer Optare , Ashok Leyland has taken
3286-420: Is a medium-sized, 5-door hatchback family car that was produced by Austin and later British Leyland between 1969 and 1981. It was the first British car to feature a hatchback body style. Despite its practical design and remarkable space efficiency (it is shorter, narrower and lower than the sixth generation Ford Fiesta ), the Maxi never came close to reaching its projected sales targets. Just under half
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3392-402: Is a type of multi-industry company that consists of several different and unrelated business entities that operate in various industries. A conglomerate usually has a parent company that owns and controls many subsidiaries , which are legally independent but financially and strategically dependent on the parent company. Conglomerates are often large and multinational corporations that have
3498-472: Is currently China's largest civilian-run conglomerate by revenue. In South Korea , the chaebol is a type of conglomerate owned and operated by a family. A chaebol is also inheritable, as most of the current presidents of chaebols succeeded their fathers or grandfathers. Some of the largest and most well-known Korean chaebols are Samsung , LG , Hyundai Kia and SK . In India, family-owned enterprises became some of Asia's largest conglomerates, such as
3604-424: Is probably a good idea that just needs a little bit of working on." This criticism actually came as a result of a road test two months before the car officially went on sale. The later rod linkage was less problematic. All models were prone to problems brought on by the "cogs in the sump" layout, whereby the gearbox and engine shared a common oil supply. The clutch oil seal was also prone to leakage. Power came from
3710-571: The Aditya Birla Group , Tata Group , Emami , Kirloskar Group , Larsen & Toubro , Mahindra Group , Bajaj Group , ITC Limited , Essar Group , Reliance Industries , Adani Group and the Bharti Enterprises . In Brazil the most important conglomerates are J&F Investimentos , Odebrecht , Itaúsa , Camargo Corrêa , Votorantim Group , Andrade Gutierrez , and Queiroz Galvão. In New Zealand, Fletcher Challenge
3816-560: 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 which would replace the ageing Triumph Dolomite , but would more crucially act as
3922-437: The Ford Cortina . The Maxi production lines at Cowley were taken over by production of the Triumph Acclaim , which was launched in October 1981. Despite its practical design and remarkable space efficiency (it is shorter, narrower and lower than the sixth generation Ford Fiesta ), the Maxi never came close to reaching its projected sales targets. BL management decisions involving the Maxi had significant knock-on effects to
4028-500: The Land Rover Group . JRT later split up into Rover-Triumph and Jaguar Car Holdings (which included Daimler ). At the same time the public use of the "British Leyland" name ceased, 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
4134-606: The Simca 1307 (Chrysler Alpine) in 1975. The company also wasted many of its scant funds on concepts , like the Rover P8 or P9, that would never be produced to earn money 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
4240-652: The United States , conglomerates became popular in the 1960s as a form of economic bubble driven by low interest rates and leveraged buyouts. However, many of them collapsed or were broken up in the 1980s due to poor performance, accounting scandals, and antitrust regulation. In contrast, conglomerates have remained prevalent in Asia, especially in China , Japan , South Korea , and India . In mainland China , many state-affiliated enterprises have gone through high value mergers and acquisitions , resulting in some of
4346-579: The highest value business transactions of all time. These conglomerates have strong ties with the government and preferential policies and access to capital. During the 1960s, the United States was caught up in a "conglomerate fad " which turned out to be a form of an economic bubble . Due to a combination of low interest rates and a repeating bear-bull market , conglomerates were able to buy smaller companies in leveraged buyouts (sometimes at temporarily deflated values). Famous examples from
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4452-574: 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
4558-491: The 1100/1300 ranges), launched in 1973, gained a similar reputation over its ten-year production life. The company became an infamous monument to the industrial turmoil that plagued the United Kingdom during the 1970s. Action by unions frequently brought BL's manufacturing capability to its knees. Despite the duplication of production facilities as a result of the merger, there were multiple single points of failure in
4664-440: The 1960s include Gulf and Western Industries , Ling-Temco-Vought , ITT Corporation , Litton Industries , Textron , and Teledyne . The trick was to look for acquisition targets with solid earnings and much lower price–earnings ratios than the acquirer. The conglomerate would make a tender offer to the target's shareholders at a princely premium to the target's current stock price. Upon obtaining shareholder approval,
4770-471: 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
4876-627: The 1980s, General Electric also moved into financing and financial services , which in 2005 accounted for about 45% of the company's net earnings. GE formerly owned a minority interest in NBCUniversal , which owns the NBC television network and several other cable networks . United Technologies was also a successful conglomerate until it was dismantled in the late 2010s. With the spread of mutual funds (especially index funds since 1976), investors could more easily obtain diversification by owning
4982-469: The Allegro. The company were aware of the issue but had decided against a recall. They were held liable for damages as they had failed to take reasonable care, because the costs of the recall were deemed in proportion with the potential risks of injury. 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: BLCV and
5088-677: The British market. By the end of the 1970s, the UK 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
5194-471: 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
5300-537: The Maxi and his driver took the Mini back to Tittenhurst, and the four set off north again to Northern Scotland; stopping briefly in Windermere and Edinburgh . Whilst driving along the narrow A838 road, Lennon panicked when he saw another car approaching him and sent the Maxi headlong into a ditch. While the children escaped relatively unhurt, Lennon received a gash to his forehead and Ono injured her back, resulting in
5406-645: The Maxi being uneconomic to build, Leyland Motor Corporation of Australia developed in the UK the Morris Nomad , a hybrid utilizing the Maxi's E-series engine/transmission and rear tailgate, fitted to the Morris 1100 body which was already being assembled in that country. For a short while the Nomad (under the Austin name) was exported to New Zealand and offered alongside the locally assembled Maxi. The Maxi featured
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#17328008900875512-493: 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
5618-783: The Mini of 10 years earlier. All Maxis were produced at the Cowley plant in Oxford , although the E-Series engines were made at a new factory at Cofton Hackett in Longbridge . The Maxi was launched in Oporto, Portugal, on 24 April 1969, in a blaze of publicity; it was one of the first cars to appear on the BBC's new car programme Wheelbase . Underneath the Maxi's practical and spacious bodyshell lay an all-new front-wheel drive chassis, which
5724-637: 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
5830-459: 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
5936-507: 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 UK Government controversially tried to privatise and sell-off Land Rover , however this plan was later abandoned. The Austin name
6042-603: The United States, some of the examples are The Walt Disney Company , Warner Bros. Discovery and The Trump Organization (see below). In Canada, one of the examples is Hudson's Bay Company . Another such conglomerate is J.D. Irving, Limited , which controls a large portion of the economic activities as well as media in the Province of New Brunswick . Some cite the decreased cost of conglomerate stock (a phenomenon known as conglomerate discount ) as evidential of these disadvantages, while other traders believe this tendency to be
6148-581: The basic structure of BL and subsequently the Rover Group until the 2000 break-up. 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
6254-501: 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
6360-455: The conglomerate usually settled the transaction in something other than cash, like debentures , bonds , warrants or convertible debentures (issuing the latter two would effectively dilute its shareholders down the road, but many shareholders at the time were not thinking that far ahead). The conglomerate would then add the target's earnings to its earnings, thereby increasing the conglomerate's overall earnings per share . In finance jargon,
6466-449: 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
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#17328008900876572-606: The demand for a larger family hatchback by revamping the Princess and renaming it the Austin Ambassador , although this was a short-lived model which only lasted until 1984, when the Austin Montego was launched. This completed BL's rationalisation, as it now had just one model competing in this market sector, whereas the Maxi had been one of three designs competing in a sector of the market which had been led by
6678-482: 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
6784-412: The end came in January 1968, when Litton shocked Wall Street by announcing a quarterly profit of only 21 cents per share, versus 63 cents for the previous year's quarter. This was "just a decline in earnings of about 19 percent", not an actual loss or a corporate scandal, and "yet the stock was crushed, plummeting from $ 90 to $ 53". It would take two more years before it was clear that the conglomerate fad
6890-410: 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
6996-434: 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
7102-585: The examples are Adamjee Group , Dawood Hercules , House of Habib , Lakson Group and Nishat Group . In the Philippines , the largest conglomerate of the country is the Ayala Corporation which focuses on malls , bank , real estate development , and telecommunications . The other big conglomerates in the Philippines included JG Summit Holdings , Lopez Holdings Corporation , ABS-CBN Corporation , GMA Network, Inc. , MediaQuest Holdings , TV5 Network, Inc. , SM Investments Corporation , Metro Pacific Investments Corporation , and San Miguel Corporation . In
7208-663: The headquarters of corporations to mergers, in which independent ventures were reduced to subsidiaries of conglomerates based in New York or Los Angeles. Pittsburgh, for example, lost about a dozen. The terror instilled by the mere prospect of such harsh consequences for executives and their home cities meant that fending off takeovers, real or imagined, was a constant distraction for executives at all corporations seen as choice acquisition targets during this era. The chain reaction of rapid growth through acquisitions could not last forever. When interest rates rose to offset rising inflation, conglomerate profits began to fall. The beginning of
7314-797: 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. Potential benefits associated with rationalising parts usage were lost, as for example, the company made two completely different 1.3-litre engines (BMC A series and the Triumph 1.3-litre), two different 1.5-litre engines (BMC E series and Triumph), four different 2-litre engines (4-cylinder O series, 4-cylinder Triumph Dolomite, 4-cylinder Rover and 6-cylinder Triumph) and two completely different V8 engines (Triumph OHC 3-litre V8 and Rover 3.5-litre V8). Examples of competing cars were: Conglomerate (company) A conglomerate ( / k ə ŋ ˈ ɡ l ɒ m ə r ə t / )
7420-612: 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
7526-503: The most powerful private economic conglomerate in 1920s Europe – Stinnes Enterprises – which embraced sectors as diverse as manufacturing, mining, shipbuilding, hotels, newspapers, and other enterprises. The best-known British conglomerate was Hanson plc . It followed a rather different timescale than the U.S. examples mentioned above, as it was founded in 1964 and ceased to be a conglomerate when it split itself into four separate listed companies between 1995 and 1997. In Hong Kong, some of
7632-500: The most prominent former parts of British Leyland that still exist, with SAIC still operating its UK base out of the former Longbridge site. 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 . At the time, LMC
7738-652: The new businesses they had recently purchased, and by the mid-1970s most conglomerates had been reduced to shells. The conglomerate fad was subsequently replaced by newer ideas like focusing on a company's core competency and unlocking shareholder value (which often translate into spin-offs ). In other cases, conglomerates are formed for genuine interests of diversification rather than manipulation of paper return on investment. Companies with this orientation would only make acquisitions or start new branches in other sectors when they believed this would increase profitability or stability by sharing risks. Flush with cash during
7844-629: 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
7950-429: The new platform, the Maxi's styling suffered from the decision to save tooling costs by re-using door panels from the Austin 1800 "Landcrab", which gave the Maxi an unusually long wheelbase in relation to its length, coupled with the fact that the carried-over doors made the Maxi resemble a scaled down version of the 1800 (and the Austin 3-Litre , which also used the same doors). This design was by then five years old, at
8056-459: 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. Ultimately only MINI, Jaguar Land Rover and Leyland Trucks would be
8162-579: 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: There
8268-608: 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. Leyland Cars was thus renamed BL Cars Ltd , consisting of two main divisions; Austin Morris (the volume car business) and Jaguar Rover Triumph (JRT) (the specialist or upmarket division). Austin Morris included MG. Land Rover and Range Rover were later separated from JRT to form
8374-648: 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
8480-713: The prize was to have his design on paper turned into reality. The "Aquila" was constructed by Woodhall Nicolson of Halifax with help from Lucas , Smiths (Motor Accessory Division & Radiomobile) and Triplex . The resultant car was exhibited at the 1973 show and then given to Field. From 1975-80, British Leyland supplied the Lawn Tennis Association every year with official "Wimbledon" Maxis. These were standard single carburettor 1750s but fitted with HL velour seat trim and extra sound proofing. Afterwards, they were sold through local Surrey dealers as ex-demonstration cars. In 1991, punk revival band Fabulous used
8586-714: The production of electronics such as televisions. While not a keiretsu, Sony is an example of a modern Japanese conglomerate with operations in consumer electronics , video games , the music industry , television and film production and distribution , financial services , and telecommunications . In China, many of the country's conglomerates are state-owned enterprises , but there is a substantial number of private conglomerates. Notable conglomerates include BYD , CIMC , China Merchants Bank , Huawei , JXD , Meizu , Ping An Insurance , TCL , Tencent , TP-Link , ZTE , Legend Holdings , Dalian Wanda Group , China Poly Group , Beijing Enterprises , and Fosun International . Fosun
8692-420: 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 one hundred different companies. The new corporation was arranged into seven divisions under its new chairman, Sir Donald Stokes (formerly the chairman of LMC). At
8798-435: The rest of the car line-up. BL marketing decreed that the Maxi should be the only car in the range to feature a hatchback . This stance prevented the Austin Allegro and Princess models gaining hatchbacks despite those designs being capable of receiving them. The policy was discontinued with the arrival of the Rover SD1 in 1976, and the fast-growing popularity of hatchbacks during the 1970s and 1980s saw British Leyland launch
8904-551: 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,
9010-533: The surviving automotive manufacturing operations of British Leyland to the present day. 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. Until the 1980s, the Leyland name and logo were seen as
9116-486: 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
9222-602: The time of its founding, BLMC was the world's fifth largest vehicle manufacturer after General Motors , Ford , Chrysler and Volkswagen . The seven divisions were: 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
9328-406: The transaction was " accretive to earnings." The relatively lax accounting standards of the time meant that accountants were often able to get away with creative mathematics in calculating the conglomerate's post-acquisition consolidated earnings numbers. In turn, the price of the conglomerate's stock would go up, thereby re-establishing its previous price-earnings ratio, and then it could repeat
9434-425: The well-known conglomerates include Jardine Matheson (AD1824), Swire Group (AD1816), (British companies, one Scottish one English; companies that have a history of over 150 years and have business interests that span across four continents with a focus in Asia.) C K Hutchison Whampoa (now CK Hutchison Holdings ), Sino Group , (both Asian-owned companies specialize business such as real estate and hospitality with
9540-668: The whole process with a new target. In plain English, conglomerates were using rapid acquisitions to create the illusion of rapid growth. In 1968, the peak year of the conglomerate fad, U.S. corporations completed a record number of mergers: approximately 4,500. In that year, at least 26 of the country's 500 largest corporations were acquired, of which 12 had assets above $ 250 million. All this complex company reorganization had very real consequences for people who worked for companies that were either acquired by conglomerates or were seen as likely to be acquired by them. Acquisitions were
9646-505: Was a highly successful truck and bus manufacturer – as well as owning prosperous car brands Triumph and Rover – whilst BMH (which was the product of an earlier merger between the British Motor Corporation , Pressed Steel and Jaguar) was perilously close to collapse. The government was hopeful LMC's expertise would revive the ailing BMH, and effectively create a "British General Motors ". The merger combined most of
9752-486: 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,
9858-443: Was auctioned many years later. Lennon also had its steering wheel removed and it was hung up in his billiard room in the house. When Lennon and Ono finally left the UK for the United States, Lennon sold Tittenhurst to friend and former bandmate Ringo Starr who had the Maxi scrapped. In October 2016, James Walshe, the deputy editor of Practical Classics car magazine retraced Lennon's journey in his 1969 Maxi. The feature later received
9964-478: 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 UK 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
10070-462: Was formed in 1981 from the merger of Fletcher Holdings , Challenge Corporation, and Tasman Pulp & Paper, in an attempt to create a New Zealand-based multi-national company. At the time, the newly merged company dealt in construction, building supplies, pulp and paper mills, forestry, and oil & gas. Following a series of bungled investments, the company demerged in the early 2000s to concentrate on building and construction. In Pakistan , some of
10176-528: Was interlinked with an innovative five-speed manual transmission ; the fifth gear was another rarity on family cars in 1969 and one which many manufacturers did not adopt until more than a decade later. The gear selector suffered from notorious problems with its control linkage, especially in early models which had a cable-operated linkage prone to cable stretch and other problems. These were noted by autotesters such as Vicar in Today's Driver (1969), who wrote: "This
10282-470: 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
10388-673: 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 division renamed itself Austin Rover , shortly before the launch of the Austin Maestro and Ray Horrocks
10494-470: Was not put into production, since the booted extension made the Maxi almost the same size as the 1800 model, which was itself replaced in March 1975 by the 18-22 series models (renamed the Princess soon after its launch). Also worthy of note is that the Maxi was voted the least stolen car in 1971 and 1972. In Australia, owing to recently increased local content assembly tariffs which would have resulted in
10600-487: Was on its way out. The stock market eventually figured out that the conglomerates' bloated and inefficient businesses were as cyclical as any others—indeed, it was that cyclical nature that had caused such businesses to be such undervalued acquisition targets in the first place —and their descent put "the lie to the claim that diversification allowed them to ride out a downturn." A major selloff of conglomerate shares ensued. To keep going, many conglomerates were forced to shed
10706-518: 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
10812-486: Was replaced by Harold Musgrove as its chairman and chief executive. The emergence of the Austin Rover brand effectively put an end to 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
10918-538: 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
11024-441: 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 during 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
11130-442: Was the last car designed under the British Motor Corporation (BMC) before it was incorporated into the new British Leyland group, and the last production car designed by famed designer Alec Issigonis . It was the first car to be launched by British Leyland. Originally, under BMC's plan for its new model range, which it had been developing since 1965, the Maxi was to have been called the "Austin 1500" on its spring 1969 launch, and
11236-536: Was too small for them to drive all the way to Scotland, so they stayed overnight at his relatives' home in Liverpool. From there, he rang Apple Records and arranged for a driver to bring the "staff" car; a recently acquired Snowberry White Austin Maxi registered RLA 888G. It featured a full-length white webasto roof and also had a silver apple mounted on the radio speaker top of the front fascia. The following morning, Ono and Lennon transferred all of their luggage over to
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