With electric cars being heralded as the future, a lot of companies have been jumping on the bandwagon. One manufacturer who’s benefitted from the electric car boom is Morgan. The marque saw a large increase in profit in 2017 when it raised prices and started preparing for an electric future. Known for its wooden-framed traditional vehicles, Morgan has thrived in a market that’s seen larger marques introduce new technology into their models.
Morgan’s operating profit rose to £3 million in 2017 compared to £1.6 million in 2016. Sales increased from 707 to 751, with revenues climbing 18% to £36.6 million, a company record. Morgan has adapted by doubling research spending over the last two years and are set to launch their first electric car, a battery driven three-wheeler.
Chairman Dominic Riley has commented on the approach. “These are not investments that are forced on us, we are being proactive because we need to keep the brand relevant.” Morgan are also looking to diversify the customer base beyond older men and appeal to a younger audience.
However, Morgan doesn’t intend to lose sight of its heritage, as coach-building will still be a major focus. The Malvern factory contains a mix of new and old technology, such as 3D printers that are next to wooden frames. Automatic gearboxes are becoming more common, though large parts of the cars are still made of wood. This includes the dashboards and frames.
A lot of customers come to to see their cars produced in the factory and they have the option to see the museum and visitor centre as well. This is further evidence of Morgan’s effort to diversify and appeal to as many people as possible.
The marque have also opened a parts business, allowing owners of older cars to have them refitted. This accounts for 10% of revenue. In addition, Morgan is looking into short-term rentals that will allow motorists to hire a car for special occasions like a wedding.
Due to the small size of the organisation, Morgan have become extremely adaptable. It seems there’s no stopping the marque’s momentum and Riley remains confident about the future. “If in 100 years everything is electric, Morgan will still be there.”
Image Credit: morgan-motor.co.uk
