Abstract

Morgan was probably the only car company in the early 2000s that still made cars the way they were made in the early 1900s - by building them on a wooden frame and crafting them mainly by hand. The company had an annual production of just over 500 cars and a waiting list that sometimes extended over several years. This made Morgan an oddity in the modern auto industry that thrived on volumes. However, in the late 1990s, Morgan began making tentative moves towards modernization. Most of the changes were apparent in its new car the Morgan Aero 8, which was launched in 2000. This case explores the traditional Morgan way of working and the reasons for Morgan's success despite its divergence from standard business principles. It also studies Morgan's moves towards modernity in the late 1990s, and the making of the Aero 8 which embodied changes in production and design techniques that were brought about within the company. The case concludes with an analysis of whether Morgan's moves towards modernity are likely to pay off, considering that the cars' nostalgic appeal and aura has been their main draw.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• The strategy and working of a rare company known to adhere to traditional production methods in the face of all the change around it
• The role and importance of change in the business environment and how certain companies can survive and succeed without bowing to change
• A traditional company’s moves towards adopting a modern production system.

Keywords

Morgan Motor Company, Aero 8 sports car, BMW V8 engine, LIFEcar, Charles Morgan, Peter Morgan, On-the-job training, Troubleshooter, Computer Aided Design, BMW, V8 drivetrain, General Motors, Morgan 4/4, Standard Motor Company, Sir John Harvey Jones