The Austin Motor Company Limited was an English manufacturer of motor vehicles, founded in 1905 by Herbert Austin in Longbridge. In 1952 it was merged with Morris Motors Limited in the new holding company British Motor Corporation (BMC) Limited, keeping its separate identity. The marque Austin was used until 1987. The trademark is currently owned by the Chinese firm SAIC Motor, after being transferred from bankrupt subsidiary Nanjing Automotive which had acquired it with MG Rover Group in July 2005.
History
1905–1918: Formation and development
While running the original Wolseley business, which had a highly cyclical sales pattern, Herbert Austin searched for products with a steady demand. Starting in 1895, he built three cars in his free time. They were among Britain's first cars. The third car, a four-wheeler, was completed in 1899. By 1901 his fellow directors could not see future profit in motor vehicles and so with their blessing and the backing of the Vickers brothers Austin started a separate car manufacturing business still using the name Wolseley.
In 1905 he fell out with Thomas and Albert Vickers over engine design. Leaving his creation, Wolseley, which he had made Britain's largest motor vehicle manufacturer, Austin obtained the backing of steel magnate Frank Kayser for his own enterprise. Kayser provided funds through mortgages and loans, debentures and guarantees to the Midland Bank thereby allowing Austin to keep virtually total ownership of his own business through his personal savings. Further assistance came from Dunlop patent holder Harvey du Cros. However, Austin's great rival, William Morris, was able to enter the industry proper (he first repaired cars) a little later funding his operation entirely from his own resources.
In November 1905 Herbert Austin acquired a disused printing works which was less than ten years old. It was located seven miles south-west of Birmingham in the small village of Longbridge (then still within Worcestershire). The following month The Austin Motor Company Limited was incorporated. In the last week of April 1906 a large body of motorists travelled to Longbridge "where snow lay full three inches deep on the ground and was still falling fast" to see the new Austin car, a conventional four-cylinder model with chain drive. It was available as a 15/20 hp complete at £500 (chassis, £425) and a 25/30 hp for £650 (chassis, £550). The sole concessionaire for sale of the cars was Mr Harvey Du Cros junior.
Two things were noticeable about Austin's new design. He had parted from the Vickers brothers because he had refused to use the then more conventional vertical engine in Wolseley cars. His new car had a vertical engine and, in all but minor detail, was identical to the English-built Clément-Gladiators assembled in the same factory.
A further injection of capital was needed in 1906 and William Harvey Du Cros (1846–1918) joined the board of directors. After that Harvey Du Cros junior of the Swift Cycle Co and Austin each held approximately half of the ordinary capital. Herbert Austin remained chairman and managing director.
Austin's cars, like Wolseley's, were luxury vehicles. The published customer list included Russian Grand Dukes, Princesses, Bishops, high officials of the Spanish government and a long list of Britain's highest nobility.
Sources
Note: in 1912 Wolseley sold 3,000 cars.
In February 1914 Austin-manufactured bodies in tourer, limousine, landaulette and coupé styles could be provided with engines of 15, 20, 30 and 60 hp. Ambulances and commercial vehicles were also provided.
Austin became a public listed company in 1914 when the capital was increased to £650,000. At that time in number of cars produced it probably ranked fifth after Wolseley (still largest), Humber, Sunbeam and Rover.
The Austin Motor Co. grew enormously during the First World War fulfilling government contracts for aircraft, shells, heavy guns and generating sets and 1,600 three-ton trucks most of which were sent to Russia. The workforce expanded from around 2,500 to 22,000.
1919–1939: Interwar success
After the war Herbert Austin decided on a one-model policy based on the 3620 cc 20 hp engine. Versions included cars, commercials and even a tractor, but sales volumes were never enough to fill the vast factory built during wartime. The company went into receivership in 1921 but rose again after financial restructuring. Though Herbert Austin remained chairman he was no longer managing director and from that time decisions were made by committee.