Selling your classic car? It's FREE to list your car on Honest John Classics | No thanks

'Mini' Margins Hit British Motor Earnings

23 November 1962

'Mini' Margins Hit British Motor Earnings

British Motor Corporation's "mini" range has certainly proved a success so far as sales are concerned, but the competitive pricing has bitten deeply into profit margins.

Mr George Harriman, the B.M.C. chairman, now reveals in his statement that the £5m. plus fall in profits to £11-5m. for the year ended July 31 was based on a turnover of £31 m., almost exactly the same level as in the previous year. Last year 60 per cent of the group's total output was represented by products of under 1,000 c.c. This compares with 57 per cent for the previous year and only 43 per cent five years ago. Clearly this trend, plus the narrow margins, makes it essential to maintain turnover by expanding output.

In the last trading period the output of minis" reached 182,864 units, of which the home market absorbed 125,877. Exports are; however, increasing steadily and in the last three months of the financial year were averaging 1,308 a week.

B.M.C.'s general export performance is impressive. In Europe sales have doubled in the past four years. In Denmark, for example, sales rose by 107 per cent in the past year and in Switzerland by 78 per cent. Not surprisingly, the B.M.C. chairman is fully confident on the export outlook and itching for Britain to join the Common Market.

"It is a sad reflection on political progress", Mr Harriman says, "that this is the sixth annual statement in which we have only been able to refer to the Common Market in prospect, although . . . we have not let that hinder our preparations."

For B.M.C. stockholders the most encouraging feature of the latest statement is that the group is more than holding its own share of the market. In the first six months of the year B.M.C. secured 44.6 per cent of the main manufacturers' home market car registrations, as against 41.2 per cent for the same period last year. Of light commercial vehicles, B.M.C. held slightly less than last year but none the less nearly 50 per cent of the total Competitive strength in the export race is also evident with the group accounting for 32 per cent of cars shipped, 39 per cent of the light commercials, and 16 per cent of the heavier vehicles. If the motor industry is to be the pace setter for national growth, Mr. Harriman feels B.M.C. can be the pacemaker for the industry.

More news from the archive

Sat, 20 Oct 1962
Disputes End At Two Car Factories The strike at a car components factory which threatened production in the Midlands motor industry...
Tue, 23 Oct 1962
THE GUARDIAN Back to normal Normal production was resumed at Burman and Sons, a car components factory at King's Norton , Birmingham,...
Tue, 30 Oct 1962
7,000 Pressed Steel Men On Short Time At Cowley From our Correspondent OXFORD, OCT. 29 The Pressed Steel Company, which makes car...
Thu, 08 Nov 1962
B.M.C. Results Not As Bad As Feared Finance, Industry and Commerce By Our City Editor The British Motor Corporation results, which...
Tue, 20 Nov 1962
Company News While unable to render a reliable forecast of the results for the present year, Mr M. Wilks, chairman of the Rover Company,...
Tue, 18 Dec 1962
B.M.C. Told Service IS "Very Poor" FROM OUR CORRESPONDENT BIRMINGHAM, DEC. 18 There was severe criticism of the spares and service...
Mon, 31 Dec 1962
Mr S. E. Aston, secretary of the Daimler Company, has been appointed secretary of the parent company, Jaguar Cars Ltd. In future he...
Tue, 01 Jan 1963
From Our Midland Correspondent REDNAL, WORCESTERSHIRE, JAN. 1 The interests of the mini-car and of the Worcestershire green belt are...
Tue, 01 Jan 1963
FROM OUR CORRESPONDENT OXFORD, JAN. 1 Thousands of workers in the Oxford area were sent home by their employers today because of the...
Thu, 03 Jan 1963
FROM OUR CORRESPONDENT BIRMINGHAM, JAN. 2 The British Motor Corporation's plans to extend their Birmingham factory in the face of...
 

Compare classic car insurance quotes and buy online. A friendly service offering access to a range of policies and benefits.

Get a quote