The Austin Motor Company Limited was a British manufacturer of motor vehicles, founded in 1905 by Herbert Austin in Longbridge. In 1952, it was merged with Morris Motors Limited to form the new holding company British Motor Corporation (BMC) Limited, while retaining its separate identity. The marque Austin was used by BMC's successors, British Leyland and Rover Group, 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.Roy Church, 'Austin, Herbert, Baron Austin (1866–1941)', Oxford Dictionary of National Biography, Oxford University Press, 2004
In 1905, he fell out with Thomas and Albert Vickers over engine design. Leaving his creation, Wolseley, which he had made into 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 the 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 a decade old. It was located seven miles south-west of Birmingham in the then small village of Longbridge in 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.Automobile Notes. The Times, 1 May 1906; p. 6; Issue 38008
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 Bird and F Hutton-Stott, Lanchester Motor Cars, a History, Cassell London, 1965 p.110
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.The Austin Motor Company (1914) Limited. The Times, Monday, 9 February 1914; p. 13; Issue 40442.
+production by yearSheepish start for the lion of Longbridge. Lord Montagu of Beaulieu. The Times, Saturday, 26 August 1995; pg. 3[S1]; Issue 65356. 1906 1907 1908 1909 1910 1911 1912 1913 Turnover 14,771 84,930 119,744 169,821 209,048 276,195 354,209 425,641 Cars 31 180 218 1,107 1,500 Employees 270 1,5001,8002,300
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.RAC Rating Ambulances and commercial vehicles were also provided.
Austin became a Public Listed Company in 1914 when the capital was increased to £650,000 (equivalent to £63,563,900.77 in 2025). > At that point, in quantity of the number of vehicles produced, it probably ranked fifth after Wolseley (still largest), Humber, Sunbeam and Rover.
The Austin Motor Company expanded and benefitted enormously during the First World War fulfilling UK 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 members of staff.
1919–1939: Interwar success
After the Great War ended, 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 from the downturn after financial restructuring. Though Herbert Austin remained as chairman, he was no longer managing director and from that time onwards; decisions were made by a committee.
Critical to the recovery was the appointment in 1922 of a new finance director, Ernest Payton with the backing of the Midland Bank, and a new works director in charge of car production, Carl Engelbach, at the insistence of the creditors' committee. This triumvirate of Austin, Payton and Engelbach steered the company's fortunes through the interwar years.
In a quest to expand market share, smaller cars were introduced, the 1661 cc Twelve in 1922 and, later the same year, the Seven, an inexpensive, simple small car and one of the earliest to be directed at a mass market. One of the reasons for a market demand for a car like the Austin 7 was the British tax code. In 1930, every personal car was taxed by its engine size, which in American dollars was $2.55 per cubic inch of piston displacement. As an example, the owner of an Austin 7 in England, which sold for approximately $455, would have to pay a yearly engine tax of $39. In comparison, the owner in England of a Ford Model-A would have to pay $120 per year in an engine tax. And this system of engine displacement tax was common in other European nations as well in the 1930s. At one point, the "Baby Austin" was built under licence by the fledgling BMW of Germany (as the Dixi); by the Japanese manufacturer Datsun; as the Bantam in the United States; and as the Rosengart in France. In 1930, the Austin 7 was the most produced car in 1930."Midget Cars Next?" Popular Mechanics, August 1930 right column, second paragraph
The American Austin Car Company struggled to sell tiny Austin cars in the US market. It operated as a largely independent subsidiary from 1929-34 was revived after bankruptcy under the name "American Bantam" from 1937-41. They became best known as the first company to submit the Bantam Reconnaissance Car working prototype, saving time by using Austin nose and wing parts of what would evolve into the extremely successful and iconic WWII Willys MB "Jeep". The design was unfortunately handed over to Willys and Ford for production with a revised nose and fender design, while Bantam would largely just manufacture trailers during the war.
With the help of the Seven, Austin weathered the worst of the Great Depression and remained profitable throughout the 1930s, producing a wider range of cars which was steadily updated by the introduction of all-steel bodies, Girling brakes, and synchromesh gearboxes. However, all the engines retained the same side-valve configuration. Deputy chairman Ernest Payton became chairman in 1941 upon the death of Lord Austin. In 1938, Leonard Lord joined the company board and became chairman in 1946 upon the death of Ernest Payton.
Datsun
In 1932, Datsun built cars infringing Austin patents. From 1934, Datsun began to build Sevens under licence and this operation became the greatest success of Austin's overseas licensing of its Seven. It marked the beginning of Datsun's international success.
In 1952, Austin entered into another agreement with Datsun for assembly of 2,000 imported Austins from "knock-down kits", to be sold in Japan under the Austin trademark. The agreement called for Nissan to make all Austin parts locally within three years, a goal Nissan met. Nissan produced and marketed Austins for seven years. The agreement also gave Nissan rights to use Austin patents, which Nissan used in developing its own engines for its Datsun line of cars. In 1953, British-built Austins were assembled and sold, but by 1955, the Austin A50 – completely assembled by Nissan and featuring a slightly larger body with 1489 cc engine – was on the market in Japan. Nissan produced 20,855 Austins between 1953-59.Cusumano, pp. 90–92
1939–1958: War years and post-war years
During the Second World War Austin continued building cars but also made trucks and aircraft, including Short Stirling and Avro Lancaster bombers.
The post-war car range was announced in 1944, and production started in 1945. The immediate post-war range was mainly similar to that of the late 1930s but did include the 16 hp, significant for having the company's first overhead valve engine.
Austin J40 pedal cars were manufactured during this era.
Austin of England From late 1950 to mid-1952 products, brochures and advertisements displayed in flowing script Austin of England as if in response to Morris' Nuffield Organization. It fell out of use with the financial merger with Morris in BMC.
BMC
In 1952, The Austin Motor Company Limited merged ownership, but not identity, with long-term rival Morris Motors Limited, becoming The British Motor Corporation Limited, with Leonard Lord in charge. William Morris was first chairman but soon retired. Lord, who had stormed out of Morris declaring he would "take Cowley apart brick by brick", ensured Austin was the dominant partner and its (more recently designed OHV) engines were adopted for most of the cars. Various models followed the Morris policy and became badge-engineered versions of each other.
Austin-Healey In 1952, Austin made a deal with Donald Healey leading to a new marque, Austin-Healey, and a range of sports cars.
1959–1969: Era of revolution
With the threat to fuel supplies resulting from the 1956 Suez Crisis, Lord asked Alec Issigonis, who had been with Morris from 1936 to 1952, to design a small car; the result was the revolutionary Mini, launched in 1959. The Austin version was initially called the Austin Seven, but Morris' Mini Minor name caught the public imagination and the Morris version outsold its Austin twin, so the Austin's name was changed to Mini to follow suit. In 1970, British Leyland dropped the separate Austin and Morris branding of the Mini, and it was subsequently simply "Mini", under the Austin Morris division of BLMC.
The principle of a transverse engine with gearbox in the sump and driving the front wheels was applied to larger cars, beginning with the 1100 of 1963, (although the Morris-badged version was launched 13 months earlier than the Austin, in August 1962), the 1800 of 1964 and the Maxi of 1969. This meant that BMC had spent 10 years developing a new range of front-drive, transverse-engined models, while most competitors had only just started to make such changes.
The big exception to this was the Austin 3-litre. Launched in 1968, it was a rear-wheel drive large car, but it shared the central section of the 1800. It was a sales disaster, with fewer than 10,000 examples being made.