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A Name Acquired, another Retired

24 September 1979

From TIME magazine
Business: A Name Acquired, another Retired
Monday, Sep. 24, 1979

For at least two generations of Americans, it was the saucy, two-seat symbol of unfettered youth, an affordable magical machine for Peter Pans of all ages. Its TC midget model, introduced in the U.S. in 1947, with hip-high fenders, a drop-down windshield and a price tag of roughly $2,000, launched the postwar era of the open-topped, wind-in-the-hair sports car. Adoring owners formed clubs around it, raced it and tinkered with it incessantly. Fans still pay up to $17,000 for a model in good condition. But last week Britain's chief automaker, BL (formerly British Leyland), announced that it will soon discontinue the perky little MG.

More than two-thirds of all MGs are bought in the U.S., where the four-cylinder, two-seater $7,195 MGB model is the current favorite. But sales have been slipping. Production has fallen from 46,619 in 1976 to 41,681 last year. Laments BL Chairman Sir Michael Edwardes: "We can't afford to back a loser."

BL, which also makes other well-known cars, including the Jaguar, the Rover and the Triumph, has been stalled by a long history of weak management and skimpy engineering. The firm's strike-prone labor force is a national joke. One wheeze: "Leyland workers don't go to work, they sign the visitors' book." BL has only 20% of the British market.

When the company was nationalized in 1975, the Labor government agreed to pump in about $2 billion by 1980. Sir Michael is expected to ask for still more subsidy, even though the current Conservative government of Margaret Thatcher has vowed not to help industrial "lame ducks."

Britain's union leaders are also in no mood to help. When BL announced that along with scrapping the MG, it will chop 25,000 jobs from its bloated work force of 165,000 and close plants over the next two years, the unions not already on strike immediately began talking about a company-wide walkout.

More news from the archive

Sat, 15 Sep 1979
THE GUARDIAN STRIKE WARNING OVER LEYLAND REDUNDANCY PLAN By Keith Harper, Labour Editor Shop stewards representing Transport and General...
Tue, 18 Sep 1979
DAILY EXPRESS ENGINEERS STRIKE For British Leyland. the anti-strike revolt grew at Castle Bromwich (Birmingham) as about 3,000 workers...
Wed, 19 Sep 1979
DAILY EXPRESS The news was bleak, too, for British Leyland last night when all major unions had rejected the plan by company boss...
Sat, 22 Sep 1979
DAILY EXPRESS UNION THREAT OVER LEYLAND CUTS By Barry Devney Britain's biggest union is drawing up battle plans to prevent the "surgery...
Mon, 24 Sep 1979
THE GUARDIAN CONTEMPT FUELS PARK ROYAL REVOLOUTION By Nick Davies When the body shop at British Leyland's Park Royal works ran out...
Sat, 29 Sep 1979
THE GUARDIAN THE EMBARRASSING MINI'S By Jane McLoughlin The BL Mini has sold itself into a shortage. BL has maintained its market...
Sun, 30 Sep 1979
DAILY EXPRESS LEYLAND REBEL THE BOSSES DARE NOT HIRE FACES NEW THREAT By Mark Douglas Home Every day Mike Savage, the anti-strike...
Sat, 06 Oct 1979
LEYLAND JOBS DEAL NEAR By Peter Hitchens After a day of tough talks, Leyland unions were said last night to have given " an amber...
Wed, 10 Oct 1979
THE GUARDIAN SHOP FLAW By Angela Singer A workforce of 360 men and one woman, Mrs Pat Harvey, work in the spanking new British Leyland...
Wed, 10 Oct 1979
DAILY EXPRESS LEYLAND CHIEF TELLS MARCHERS: I'M NOT BLUFFING By Peter Hitchens Leyland protest marchers felt the full blast of their...
 

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