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

Good or bad it is a sad day. MMC is now just another foreign owned, sorry, controlled British car manufacturer. If I were one of their U.K. suppliers I would be looking to my future. Lets hope they don't follow other British companies like Barbour etc. who continue to trade on their heritage and ye olde british craftsmanship whilst quietly moving production abroad. (consumer advice: if it doesn't say Made in England on the label it isn't despite what the ads may lead you to believe.)
I was told last year that the company made more from factory tours than car sales. I thought it a joke at the time but could the future be a factory in China and a 'living museum' in Malvern.

Oh such negative thoughts. I best go for a lie down.

Referance Dave W's comments the Chinese have a saying that 'wealth only lasts three generation'...… obviously they say it in Chinese.

Yes typical third generation family sell off to venture capitalists.

I hope it works out but have worked for a company owned by CVC these venture capitalist guys want their pound of flesh.

The may well sell off the land etc .

The upside is once the lipstick is on the pig in 3-5 years time they may do an IPO and we can all buy shares.

Everyones after a pizza the action, it seems

I was thinking about the factory tours. I might be completely wrong but I expect they are a significant part of the company profit.

Assuming that company profit is 3.2million pounds based on the press reports.

Also assuming that there are over 30,000 people taking a tour at 24 pounds that is over 720,000 pounds or nearly 25% of the stated profit.

I might be wrong but I think I read that the factory tours are run by volunteers who are mainly retired Morgan enthusiasts so that mw the tours are basically all profit.

I would assume that the new owners would look at all the sources of income and leave the factory in Malvern. I don't think Morgan tours in an Italian town would be as popular.

An unrelated thought, based on the reputation for a lack of quality Italian products generally have is it really possible that the quality of Morgan cars improve with Italian owners?

On our recent visit to the factory the guy told us he was a volunteer.

The puns cannelloni get feta.

InvestIndustrial is a well-funded, historical Italian investment group with a good reputation and interests in various industrial operations since many decades. Recently they relaunched Ducati and on a good track with Aston Martin. Definitely not a mysterious Chinese or Middle-East buyer and probably a very savvy move for the Morgan Motor Company.

I've no beef with you either way....or MMC decision to sell.

But.....do you work for InvestIndustrial by any chance??

I have mixed feelings about this.

Definitely running along Classic 3rd gen family business route, but I guess ultimately what’s the real point in owning a business if not to make money for yourself?

You can take an ongoing income stream from the existing business, and with that ownership/directorship comes massive responsibilities- to the staff as number 1, in effect you decide what the guy on the shop floors kids get for Christmas...

Then as a Director you have to accept that your head is above the parapet and should things go badly wrong you will end up in the papers and could even end up in jail...

So faced with that scenario or the offer of a bag of cash and no responsibilities, liquidating your position is appealing!

When I was working I ended up as part owner of a business that was established in 1896 and employed 150 people and was turning over £80m with a 3% profit margin.

Myself and two co-directors attempted an MBO and the majority owner decided that they would sell but not to Management. I cashed in and walked away. A year later they sold to a Geman company with whom we had had a close association for many years for less than our offer. Shortly after, the FD also walked.

The business now employs 100 staff, £30m turn over, and is loss making.

When the sale to the Germans was made, the business had been promised the moon on a stick by the new owners, none of which has happened..

So I guess ultimately I am concerned for the future of the business under new ownership but am entirely understanding of the families motivation to sell..

If I ask to my wife, she would answer me: "Since they succeeded to bring Sergio Rossi brand to a level that does not make me feel stupid while paying 650 gbp a pair of Godiva high heels shoes. You should be familiar with this concept considering how much you paid your AeroSS that needs to be fixed more or less every other week".