Talk Morgan Forums Community The Malvern Arms Investindustrial and majority stake in Morgan

I see a few things here.

They II have experience, connections and are motivated to move things on. Some of the comments about rinsing it for a profit are not strictly true. They make money through developing a business so that the overall value increases, not just profit but share value through brand reputation, growth and competitive edge. When/if/how they come to divest their shares at that point could be an IPO or a sale to a larger business with an interest (BMW or Geely) for example. I have a little experience of investment companies and venture capital. If you work well with them and the goals are maintained it invests further and everyone benefits. The biggest risk often overlooked is that you have no control over how/when they choose to divest their part. Also if things become rough they do have a full set of knives if really needed. I would worry a little less about this given the last few years of Morgan's results.

From the families point of view it is very sensible to make the decision now. The car sales and services seem to be going very well and so they will get best value for their shares. You never want to sell when things are going badly do you?

I also note the comment about the staff becoming shareholders, I do hope that is more than a passing comment as it would be important to keep the staff with the business in times of change and that would be a good way of focusing them on the future.

As we have all said at one time or another Morgan needs investment to be able to continue to play at an ever increasing table of costs. Regulation and other challenges become a disproportionate amount compared to revenue generated and at some point it goes down a spiral. I think this way they should be able to make the next steps and have a future.

I think it is a little sad in the same way the parting with Charles was also sad. However the team have done a great job in moving the business on and deserve the respect in my opinion.

Change does not automatically mean doom, Mr Mannering. I don't overlook the risks involved but I think this is a good call if it works out as they have been doing for the last few years.

No doubt this is why the new models are called the "Metric" models.

There is absolutely no truth in the rumour that Morgan will be Brexiting production to a new factory at Mandello del Lario.

Sentimentally it is sad.
I own one of the last of the family Morgans, with a naturally aspirated V8.
This development temps me to keep it.

But from a business perspective absolutely the right thing to do and understand why they did this: in 2010 the owners of RTC realised that we lacked the resources to take the company to the next level. We we aware that in many ways we were out of our depth. So we sold out in early 2011. It went very well, the new owners invested and supported and the spirit of RTC thrived under the new owners.

Then in 2017 that company was, in turn, taken over. RTC has disappeared, it is part of a "production cluster". The products we developed sell well, but now it is all about cutting cost, reducing risk. It saddened me.

But, we took the money and once that is done you lose both responsibility and control.

Whatever the reasons, good or bad; 110 years of tradition has just ended.

So Morgan is no longer British owned

I think looking at the company it’s an Italian private equity company domiciled in Luxembourg

Have I got that right?

From the current shareholders perspective good time to sell. In 20 years time they won’t be able to make “ motor” cars any more. Where motors = internal combustion engines. High risk that their current market will disappear.

Sad news really, the oldest family owned car company, the oldest british owned car company (and one of the few), still owned by the original family descendants..

Shame to lose all of that, let's hope that the investors don't influence to much of the decision making for the worse further down the line. Most investors are only interested in making money as fast as possible, not in the future..

Well, you know what they say. When you sup with the devil, make sure to use a long spoon.

Venture capitalists in general have a reputation of being in business to make a fast buck, and don't tend to be interested in the long haul. This lot certainly aren't in it because of a love of Morgan cars and a respect for their traditions.

Funny that we had a very recent thread on the Aston Martin flotation. The shares have lost 40% of their value over 4 month; a shining example of why you shouldn't buy shares in a company being floated by venture capitalists cashing out. Turns out it was the same lot who have bought into Morgan.

I hope it works out well for MMC, but I'm not holding my breath.

and mine

Let's hope it's the start of a whole new era

and not the start of an error