Jaguar-B.M.C. Union Examined

Press, Volume CVI, Issue 31124, 29 July 1966, Page 11

Jaguar-B.M.C. Union Examined

THERE are two obvious reasons why Jaguar should have joined forces with the British Motor Corporation: both are completely British, and B.M.C. already supplies car bodies to Jaguar through its subsidiary company, Pressed Steel. Both companies need a new big-car design to meet the competition of such firms as Mercedes and Ford, writes Anthony Harris in the “Financial Times.” The strength of the B.M.C. lies mainly in two models, the 1100 and the Mini. In Britain B.M.C. holds about three-fifths of the market for cars up to 1200 c.c., but only one fifth of the market above that engine size. The Princess R has proved a disappointment, for in the first four months of this year

only 1500 were registered in Britain—considerably less than the 12,000 registrations a year planned. Jaguar has also had troubles, although with rising total production. The continuing success of the E-type has balanced some of the saloon sales disappointment. In Britain, total Jaguar sales in the first four months were more than 10 per cent below those of last year. Exports have been much better, but the Mark X, in particular, has never commanded the sales its merits seem to deserve. Even had a runaway success been designed to succeed the Mark X, Jaguar lacks the productive resources to take advantage of such an opportunity. B.M.C. lacks any estab-

llshed international reputation for big cars, and it seems likely that one of the first fruits of the union will be a new big Jaguar produced in something like B.M.C. volume. The merger has brought B.M.C. other benefits. It has gained (through Jaguar’s GuyDaimler branch) a good stake in the market for high-quality heavy trucks and also for buses. Jaguar gains access to a distribution network which can exploit a new range, particularly in export markets. Coventry Climax, bought by Jaguar some time ago, is also an acquisition for B.M.C. and may become an engine development establishment for the whole group. Overseas dealers for the

two firms could ultimately be offered the entire range of cars, which would improve coverage. In sports cars it is an alliance of strength, for after Jaguar and Lotus, M.G. is possibly the most internation-ally-respected name in British sports cars. This may hold another clue to the merger: B.M.C. has been preparing to replace the ageing Austin Healey 3000. At present the two firms have complementary ranges, and the merger creates new opportunities for both.