Charles Morgan: Fully loaded

(MENAFN- Khaleej Times) "Families provide us with a sense of belonging and a unique identity. Families are, or should be, a source of emotional support and comfort, protection and security."All families should work together to solve problems, without blaming, criticising and finding fault with each other," Charles Morgan, who was recently sacked from his eponymous car business, wrote in a 2009 essay on families. And he specifically thanked his sister Jill. But little did he know that daggers were already drawn and the very sibling who he showered with gratitude would sit on the board that ejected him from the driver's seat of a business he had been steering from 1985. Taking payments for talks about his experience as a television cameraman in Iran and Afghanistan was among the charges reportedly thrown at him. Ever since the boardroom coup d'etat in March, the Internet has been awash with cries of shame. "Bring back Charles", "Morgan minus Charles is no more Morgan", "Family greed and ego" and "Morgan sold its soul" are some of the topics hotly debated on social websites. Some nationalists are concerned that another company that has been at the heart of Britannia for over 100 years is now destined to end up in Chinese or Indian corporate garages. Hundreds of enraged petrolheads, fans and workers took to Twitter and even launched an online petition to honk their support for the iconic Morgan, who is credited with successfully navigating one of Britain's oldest car makers to the 21st century. Morgan was also dismissed on October 14 as an employee and director of holding company Morgan Technologies and then his identical positions at subsidiaries Morgan Motor Co, Morgan 3 Wheeler and Aero Racing. The flamboyant racing enthusiast was even stripped of his beloved Morgan company car by the board comprising sister Gillian Price, brother-in-law David Price, nephews Laurence Price and Craig Hamilton Smith, niece Jackie Pertwee and three others. The action came as a rude surprise as the company, 100 per cent family-owned ever since it was founded by Charles's grandfather Henry in 1910, doubled the volume of cars last year and dramatically increased its profits in the first six months of 2013 to £1.2 million. A former ITN cameraman for 10 years before joining the company in 1985, Morgan has covered some of the world's worst troubles like the Iranian revolution, the Soviet occupation of Afghanistan and the Lebanese war. Talking to Khaleej Times ahead of his Dubai lecture at the Mena Customer Delight Award function on November 7, Morgan reflected on the car, the family and the feud. What drives the Morgan business, 100 years on? The car industry is a very tough environment. Changes are forced on the manufacturers by government legislation and customers are constantly demanding safer cars with more features. It is often thought that the research and development that goes into making a new car requires a huge volume to justify the cost. Morgan cars have to an extent avoided some of this cost by forming strategic collaborations with larger car makers. For example, Morgan has never made its own engines and gearboxes. Instead, we have formed strong partnerships with Ford Motor Company and BMW AG, and in earlier days Rover. This has given us the chance to fit modern technology without the prohibitive costs of developing the powertrain entirely ourselves. Another reason for the survival of Morgan cars is that we do offer something different. This is not just a retro look but is also the unique way the car is constructed. Most cars are made from steel to keep cost down but a Morgan is made entirely from aluminium, body and chassis. This makes the car much lighter than a steel car. The car is also designed for balance, i.e. low centre of gravity and not top-heavy or too large at one end. This means Morgans are fun to drive because they are light and responsive, like a favourite push bike. The last reason Morgan cars have flourished is because the dealers and the factory offer a customer a chance to personalise his or her car. The factory then builds the car for the customer. In fact, he or she can come and watch it being built. Any exterior colour is available and can be specified and almost any leather colour interior etc. This means the customer can in fact order his own unique car. From three-wheelers to classic cars to the Aero Range, Morgan has come a long way. As a person credited with the company's technological transition, can you explain the experience of evolving the company? This is my favourite activity in the company. When people ask which is the best Morgan that I have driven, I always say the one we haven't built yet. I have been lucky enough to work on the teams developing all of the Morgans over the last 30 years, all of the Aero models, the improved Classics and the new Morgan Threewheeler. When I started at the company I fancied that to be my occupation. In fact, British universities are one of the best places to get a training in car design and around 15 years ago Morgan employed a professional designer, Matthew Humphries. The company has built on this start and now employs a team of three designers all working with the latest technology from Hewlett Packard and AutoDesk to provide new car designs. These designers are supported by a team of eight to 10 engineers who design the chassis and suspension of the car using the latest computer aided systems. The software is so good now that you can almost design a car, engineer it, print the catalogue and start selling cars on the website and through the dealers before you have spent a penny on tooling or stocking up for production. Of course, these systems also mean that you can make ongoing improvements as you find them out during development. Perhaps the best fun to be had though is driving cars at the development stage. Morgan is lucky enough to be able to use a number of test tracks and of course these enable a car to be pushed to its limits. I was an amateur racing driver myself so I love this aspect of the development process. With the Morgan Threewheeler this test of the product was rather public last year as, accompanied by my wife, I drove coast to coast across the USA, a distance of around 3,000 miles. We competed in the famous Gumball Rally and after arriving safely in California won the Spirit of the Gumball Trophy. Death Valley was a particularly good test for the car with its aircooled engine in desert conditions. I am pleased to say the car did not miss a beat and proved it was not just some hobby car but a serious cruiser. Morgan has been one of the best examples of collaboration between businesses and universities. Can you explain how Morgan benefitted from Knowledge Transfer Partnerships with UK universities? Morgan Motor Co has employed around five post-graduates from British universities. In Great Britain we have some of the best universities for training in engineering or car production. In fact, the UK is still a centre of car and engine production and with companies like GKN and Riccardo, not to mention the F1 teams. So the UK is a centre for research and development of the next generation of motor cars. The British government supports this in two ways. It can help with the costs of employing a post-graduate which is a big help in a small company like Morgan. Secondly, there is system of tax credits for research and development to enable a company to pay less tax on the profits from the invention that is registered. That encourages small companies like Morgan to try new things. In Morgan's case, this will not be a new engine but it may be a new chassis or the way the car is constructed. Morgan cars of the future may be made from materials such as magnesium alloy and laminated wood. So in a way the company is a pathfinder for the lighter technology to enable future cars to consume less fossil fuels. Which are the foreign markets where Morgan sells its cars? Apart from China, did you have plans to open shops in other Asian markets like India? The Morgan dealers in China have had a successful start. The plan was to sell around 50 cars there this year and I think we are up to around 30. This is in spite of a tax on the import which is more than the value of the car itself. A dealership has also opened in Dubai for Morgan at Al Futtaim. This is our first dealership to open in the Emirates. Do any of the leaders in this part of the world own a Morgan classic? There are certainly Morgan cars in the Middle East. Morgan cars have been imported by foreigners living here and others. Morgans have been purchased by wealthy local collectors because of their rarity. Morgan is much too discreet to reveal the names of its owners, but 100 were lucky enough to be able to purchase the Morgan AeroMax which is thought by many to be one of the most beautiful cars in the world. Despite being its driving force for many years, the company ejected you as its executive and board member? What went wrong and what's the progress of your fight back? I am still a 30 per cent shareholder in Morgan Cars and I am appealing to have a role in the company in the future. I still have a lot to offer any car company and I hope I can resolve the issues with the other directors and shareholders. I am absolutely certain I have done nothing to damage the good name of Morgan cars. How did the boardroom exit impact you and your family emotionally? It was certainly a shock and unexpected. In my tenure I have seen the company go from strength to strength and as a major shareholder I expect to be able to make sure that that is what happens in the future. What was the company's financial status when you left the business? Morgan Motor Co is profitable, makes double the number of cars it did five years ago and currently exports around 70 per cent of production. In a recession the company can be proud of that achievement. After graduation, you started off with a book publisher before establishing yourself as a television news cameraman. What prevented you from joining the family business straightway? At university I had two loves - cars and films. I joined Independent Television News to get into the film industry. The company made me a newsfilm cameraman and I had 10 years filming global historic news events. I travelled to the Middle and Far East as well as around Africa. It was a fascinating experience and gave a great background in world affairs. As a successful television cameraman, what was the most exciting or chilling experience - the Iranian revolution, the Lebanese war, the Afghan conflict or Zimbabwe transition? Probably entering Afghanistan when it was occupied by Russia was the most exciting and dangerous trip. Unfortunately we lost our equipment in the Panjshir Valley so what was going to be a two weeks' stay turned out to be a six-month stay. We walked out over the Hindu Kush and climbed six mountain passes before we reached safely in Pakistan. The Middle East is a place well-known for family businesses? What's your message to them as well as young entrepreneurs? Many people from the Middle East visit Great Britain and particularly London. I think the cultures have to some extent merged together with people appreciating the best of both. Certainly at the luxury end of the market, I think there is huge agreement in what is high quality and worth saving up for. How is life after Morgan and how does the road ahead look like? Morgan is not finished for me yet. I think the company has a huge future so long as the products keep showing innovation and clever ideas. Furthermore, the quality and soul of the company must be nurtured. I intend to make sure that that happens. Do you think your exit will finally lead to Morgan Motor Co being taken over by people like the Tatas? It is definitely a weaker company and more open to takeover than it was before.