Talk Morgan Forums Community The Malvern Arms Who is most important to MMC?

If this is true then Morgan are struggling , but they don't seem to be .

Morgans will have a very low scrappage rate so the production of new morgans has to be dependant on new Morganeers either buying the new cars directly or the second hand cars so the seller can buy new.

You'll never know until / if they go t1ts up. But I doubt they are struggling and more than minting it. They have a low cost very low tech operation and they charge twice what a mass manufacturer would do for the same sort of car. As long as volumes hold up and they dont go silly on costs, they should be OK.

From my experience in business the time to run for cover would be if they built new offices / new factory or the likes of the previous MD got silly ideas about racing and publicity.

Theri key long term issue is where to go with car design. On the one hand they cant afford to modernise too much. On the other, regulations are going to get ever tighter and how do you get a trad through euro crash regulations as eventually they will have to do?

I talked to Mark Leddington about this.

He told me that the "sweet spot" is between 775 and 825 cars a year, above that overtime costs go up and quality suffers.

If they ran 2 shifts (6 am to 13:00 and 13:00 to 20:00) they could comfortably build 1200 to 1300 a year, but to do that would mean adding people with skills that only they, MMC, can train. Steve has talked a lot about apprentices and training, so perhaps the 1300 mentioned on the website is an ambition.

My brand new 2008 four seater plus four was 37k the same car today is 57k thats a huge increase in price they must be making hefty margins with no real upgrades in 8 years.

Em

I've seen the same sort of increase in top end motorbikes and in bots. The cost of living index is a nonsense - its the cost of existence index. Anything you actually want to buy goes up far more than the price of sprouts or chicken.

I think true inflation is around 10% annually, seems like that with most things I buy anyway!
Don't eat sprouts and very little chicken though!

A very good definition, Howard, "Existing costs". Based on "Existing costs" ECB-Mario explains our inflation rate which is "too low" in his view, and he prints 60 billion new € every month to devalue our currency more and more. The result is an increase of prices regarding all valuable goods like houses or classic cars. But that has "nothing to do" with the definition of inflation. Sorry for rant and hijacking the thread.

Someone who worked in insolvency told me that a photo of the MD getting in/out of a helicopter in an annual report was a sure danger sign.