Why did British Leyland fail?

UK PROFESSIONAL DRIVERS FORUMS OLD TIME LORRIES, COMPANIES AND DRIVERS (INTERACT
972

… the final installment

  1. Development of the 505 Engine

it is possible that the output of the 505 engine can be increased by development including turbo-charging. This action will not eliminate the immediate problem and must be looked on as a long term solution. In the long term this action does not comply with the Divisional Policy to develop the Leyland 500 engine.

The 505 production plant is in need of repair with a possible expenditure of £40,000.

This action is not recommended.

Further Studies

Outline approval to go ahead with the manufacture of the Lynx and Bison at AEC is required. Before a firm decision to go ahead is given the following studies should be carried out: -

  1. The AEC and Divisional cost, price, and profit effect of these proposals must be investigated.
  2. The timing of these changes must be established.
  3. Capacity study at Leyland and AEC to meet these proposals and what expenditure will be required.
  4. A study of suppliers’ capacity and additional expenditure.
  5. A study of the rear axle requirements, single / double reduction Maudslay units in solo / coupled form, plus hub reduction for the Lynx and Bison. Maudslay MHR axle in the Guy 32 tonners.
  6. The marketing implications, distributors’ spares stocks etc.
  7. Coupled with (6) a study of order control for Leyland and AEC.
  8. The engineering department at AEC will become short of work as Leyland will remain the design parents for the 500 engined vehicles. It is suggested that they become responsible for some of the details and testing of the FPT70 range.
  9. A study on the materials handling and transport requirement and their associated cost for these proposals.
  10. The future of passenger vehicle production at AEC must be studied.
  11. A passenger derivative of the Lynx will be required for export markets to replace the Mercury derived Ranger. Subject to AEC manufacturing the basic Lynx vehicle this work will be undertaken at Southall.

EXHIBIT 1. AN INDICATION OF THE PROPOSED VOLUME CHANGES. (All based on 1970 Production Figures).

AEC 1970/ 1972/73
Medium Trucks 2803/ 1789
Heavy Goods 2111/ 2929
Reliance / Regal 445/ nil
Other Bus 897/ 1220**
Guy Heavy Goods nil/ 1141
Total 6256/ 7079

Guy 1970/ 1972/73
Medium Trucks 1345/ nil
32 Ton Tractors 1141/ nil
Other Heavy Goods 68/ nil
Buses 316/ nil
Total 2870/nil

Leyland 1970/ 1972/73
Comet## 3938/ 4283
Lynx / Bison 796/ 2810
Heavy Goods 1750/ 1000
Leopard / Worldmaster 1075/ 1520
Other Bus 1007/ 1000
Total 8566/ 10613
** GF comments, don’t know what bus this was meant to be, there’s no mention of it in this document.
Comet## GF comments, this wasn’t the Comet / Super Comet familar in the UK, it was a basic third-world export model competing with Bedford. Some were also built at Albion, Scotstoun, which also built “our” Super Comets.
EXHIBIT 2. TIMING PLAN - AEC MODEL CHANGES AT SOUTHALL PLANT
End December 1971 - End of AEC Swift production
December 1971 - Start of run-down of AEC Mercury / Marshal production. Finish production Autumn 1972.
March 1972 - Start of run-down of AEC Reliance production. Finish Autumn 1972.
April 1972 - Start production of Guy 32-ton tractors. Phase out September 1973, cease production June 1974.
December 1972 - Start manufacturing Leyland Lynx / Bison range. Ongoing.
September 1973 - Start manufacturing FPT70 premium heavy goods range.
ENGINES: -
October 1971 - Start phasing out of 505.
December 1972 - Stop production of 505 and transfer 760 and V8 production to Leyland.
…COMPLETED