Recently, British sports car manufacturer Morgan Motor Company caused quite a stir at the Geneva motor show when the luxury sports car maker announced that a venture capitalist firm based in Italy will be taking the majority of the controlling stakes in the company.
The company in question is Investindustrial, an investment firm based in the company. However, despite the announcement of its announcement, the amount of the investment itself has not been disclosed. However, according to Morgan, the investment is very significant and is one that can help the 110-year old brand with potentially doubling up sales, introduce new models, and secure the company's name for the foreseeable future.
In a recent interview, Morgan chairman Dominic Reilly said this when asked why the deal happened: "Look at other businesses with significant capital investment. The long-term benefits of new capital allow us to build our dealer network and invest in new technology. The industry is becoming increasingly technological, with safety and other technology - our R&D can benefit from this investment of capital. We'll never be a large scale but we can develop."
Why Investindustrial
The chairman then went on to explain why the company chose the Italian investment firm. According to Reilly, the firm was extremely impressed with the company's factory, history, and craft skills, and they don't want to change that. What the firm wants, however, is to invest in it. Invest in the company's ideas, as well as people, to guarantee that nothing changes. Per the chairman, "The factory is less than half of the 10 acres we have so there is room to grow. There's a big opportunity with the museum and other areas, and the council is very supportive. They say we're the jewel in the crown of Malvern."
When asked about the long term, the chairman also said that for now, the business plan is to make the investment, grow it, double production, and secure the future of the company. The chairman also mentioned that the staff are more than happy about the investment, and said that, "historically we've been very cost conscious, now there is a chance to spend sensibly and that excites the staff. Investment improves morale."
Moving forward, Morgan Motor hopes that the investment will help the company integrate better into a wider market, giving a wider audience a chance to get a piece of the company's handmade sports cars.
