This section will include Company Press Statements and Reports,
along with newspaper articles
.

It gives an insight into how the company did over the years, and how Herbert Austin guided his company, often voicing his views in the public arena.


The items will be in chronology order, with the latest version in Blue


August 1906

First Production Cars Delivered

A 25hp Austin car, one of the first completed vehicle was delivered to Richmond in Surrey. It had a useful-looking hood and a movable weather screen. A small window in the back allowed the driver to see right through when reversing.

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25 November 1911

Austin Motor Co. Taken to Court

At Bromsgrove County Court on Monday last the Bromsgrove District Council sued The Austin Motor Co, Ltd. for £16-11s-4d. This was in connection with the damage done to the Councils Road (Rose Hill Gradient) because of the extraordinary traffic, as the Company were using the hill for testing. It was stated as many as 80 vehicles a week were using the hill and this extra traffic had incurred the council in extra costs to maintain the highway.

The defence pointed out that the Highways Rate had gone down during the period from 9d to 6d in the Pound. (The Highways Rate was the amount paid in the pound based on the rateable value of a Landowner property, which went to pay for the maintenance of the highways) So if the road was fit for traffic, then the Austin Motor Company was entitled to use it as much as it likes.

The case was dropped, with Bromsgrove District Council paying costs.


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14 April 1916

The Austin Motor Company (1914) Ltd.

The Annual General Meeting of the Austin Motor Company (1914) Ltd, was held on the 13th April 1916 at the offices of the company, Longbridge works, Northfield, Mr. Herbert Austin (chairman and managing director) presiding.

The Secretary having read the notice convening the meeting and the report of the auditors,

The Chairman, in the course of his address, said:- I am pleased to be able to report that, in spite of the continuance of the war and the extensive changes necessary to cope with the large contracts received from His Majesty’s Government and the Russian Government Supply Committee, the results of the past year’s work has been very satisfactory.

Large Contracts Placed with the Company.

The sales aggregated nearly £800.000, and for the most part consisted of goods entirely different from those previously made by the company. This speaks well for the energy and resourcefulness of the company’s management and staff, with the result that further large contracts have been placed with the company, and the order book at the present time reaches the total of nearly £2,000,000. When the war is finished there will be no difficulty in returning quickly to our regular business, or taking up any lines that the circumstances may warrant. During the year several large shops have been built and equipped with plant for making shells, aeroplanes, aeroplane engines, and stampings in the most modern and effective manner, and the results attained have been the subject of very favourable comments. Reports from various quarters go to show that everything supplied by your company has in every case given through satisfaction and upheld our reputation for sound and reliable manufacture.

It may seem somewhat out of place during these serious and unhappy times to offer or receive congratulations on the results of the trading of a “controlled” business; at the same time it is obviously necessary that an undertaking employing over 4,000 hands must take the greatest care to safeguard its resources, or it might very soon become ineffective and a danger rather than a help to the Government, both during the war and also when it is over.

Assisting the Government and its Allies.

After peace is declared (and I am sure we shall all be only too happy too hasten its advent) the Government will require the best efforts of its workshops and business undertakings to absorb the men returned to civil life from the Army and Navy, and to produce every requirement within our shores and not have to purchase abroad, and also to manufacture for export the greatest possible quantity of goods that can be sold to other nation and our Colonies. such a result is not to be obtained by badly-managed or bankrupt concerns, and as credits will have to be extended after the war, large sums will be required to finance the stock during manufacture and until cash is received in payment. to look after the future and at the same time, give the Government the best possible value has not been an easy matter, and it will no doubt be increasingly difficult if the war is to continue much longer, so that if our profits are smaller than some would consider sufficient, or not on a par with those of some more fortunate concerns, it can at any rate be taken for granted that the efforts of your management and staff have have been unceasing in their desire to assist the Government and its Allies in their big task. A reputation for good honest work will be a valuable asset in the immediate future, and we feel confident that the product of the Longbridge works will hold its own and amply repay any expense we have incurred to safeguard our good name.

Output Still Increasing

As mention in the report, our output is still increasing, and the sales for the month of March were over double those of March 1915. As to how much further our efforts can be or should be extended it is not possible to say, but it is a comfort to know that the requirements of our big Army and Navy, and those of our Allies, are being day by day more easily met within our shores, and that it is not now so necessary to go elsewhere for our munitions. All this is to the credit of the business undertakings which have done so well, and made such big efforts under very trying conditions.

During the last financial year the works were only closed for a few days for holidays and repairs, and in some of the departments the strain of working six nights or seven days a week was severe. Since early in December, 1915, the Saturday night shift and Sunday work has been suspended at the suggestion of the Ministry of Munitions, with the result that a number of the employees have left to go to other works still continuing the practice. Some general ruling on such an important matter is necessary, as the double pay received for weekend work is apparently a big temptation.

Advice to Workers

Wages and the cost of raw materials have risen to, in some cases, double what they were in pre-war times, but in many directions the removal of the restrictions on output and the work of a simple and easily-learned character done by unskilled labour have resulted in considerable reductions in the final cost, proving definitely that if the workers would only throw off the yoke of the section of their unions who preach “restriction of output as the only means of regulating work and preventing non-employment” they would be able to earn greatly increased wages and ensure employment for every one by making it possible for a large portion of the goods that are now, or were previous to the war, purchased abroad to be made in this country. this is a much more important matter than a fiscal policy, and more hopeful if it could be brought about than a combined effort to restrict German and Austrian competition, because it would be economically sound and of a lasting character. It seems to me that the present would be a fitting opportunity for the employers’ federations and the workmen’s union to get together and discuss the encouragement of the better instants among workers generally and the conditions under which it would be practicable, after we have beaten the enemy in a military and navel sense, to pull together and beat them in manufacturing and commerce. A return to the old narrow-minded ways, small and uniform wages, restricted and misdirected efforts, seems impossible. Both sides would have to make changes, but the possibilities will be so enormous for each party that any throwing overboard of ancient and out-of-date rules would be more than amply repaid. The cost of the war is enormous, and we have not yet finished with it; but if we can commence operations in a well organized way immediately the struggle is finished, the losses will be wiped out in a very short time.

Your directors look forwards to being able to present a similarly satisfactory statement at the next annual meeting, at the same time doing their requirements at a fair and equitable cost. I now have pleasure in proposing:- “That the report and accounts, as printed, for the year ending November 30 1915, be received and adopted.”

The resolution was carried unanimously.

The retiring director, Alderman Albert Ball, JP., and the auditors, Messrs. Carter and Co,. having been re-elected, a vote of thanks to the chairman concluded the proceedings


July 1918

Company Report


The fourth Annual General Meeting of the Austin Motor Company (Limited) was held on Thursday at the offices of the company in Northfield, Sir Herbert Austin, KBE (chairman and managing director), presiding.

The Chairman, in the course of his remarks said:-

I have pleasure in being able to report that the operations of the company continue to expand, and during the Period under review the following increases have taken place in comparison with the preceding 12 months:-The employees, 125 per cent; turnover, 97 per cent; assets, 64 per cent. These extensions have naturally necessitated a proportionately heavy increase in capital expenditure in our works, which we now call the South Works. and at the instructions of the Ministry of Munitions we have erected and equipped, at their cost, two very large Works adjacent to the South Works which we have named the ‘North’ and ‘West’ works. These two works are served by a completely new power units, boilers, engines, coolers, etc, situated to the east of North Works. Each Works has self-contained canteens, ambulance stations, etc, fitted out to the most complete manner. Suitable siding and station accommodation for goods has also been provided. These three, works have been operating at very high pressure, day and night, during the whole of the period.

Site for Further Extensions.

Some 60 acres of our vacant land is been levelled. The cost of this work has been rather heavy, owing to the large amount of material it has been necessary to deal with, but the work is drawing to a close and will certainly provide, when finished, one of the most satisfactory sites in the country.

To provide some portion of the accommodation necessary for housing our very large number of employees, we have purchased two farms between the works and the village of Northfield on which we have erected 252 houses and a complete and up-to-date laundry. The portion of the property occupied by the houses has been laid out on garden suburb lines, with proper drainage, gas and water systems, and tar macadam roads, footpaths, etc. The whole of the houses were completed and in occupation before November last (1917), and although the cost of carrying out this work has been somewhat high, the advantages gained by being able to provide for nearly 1,000 of our employees have warranted the expenditure. Sufficient land is still available for the erection of an additional 500 to 600 houses but it is not proposed to do any further building until conditions affecting the cost are modified. The position occupied by this estate is ideal for the purpose. and it has created a considerable amount of public attention and approval.

A building and grounds, formerly in use as a school were purchased at Bromsgrove and fitted up as a hostel This is in occupation and has been a very great conveniences and assistance. Also, to obtain sufficient labour, a large fleet of motor-buses have been built and are running to various centres.To accommodate these a large garage at the works, and two other garages at Bromsgrove and Belbroughton have been erected and equipped.

Preparations For Trade After The War.

These extensions have naturally made it necessary to engage a suitable staff to control the work, and throughout the whole of the period we have endeavoured to keep in view a programme for post-war operations which would enable us to employ and make use of the three works and, as far as possible, all the staff and employees. We have drawn up a definite scheme settled on the various articles we intend to manufacture, have designed prepared models, and we are now actively engaged in fixing up suitable relationships with agents and representatives in all parts of the world in which it will be possible for us to operate when peace is declared. I consider that we have to-day one of the most complete and efficient works organisations in the Empire, and we except to be able to occupy a very strong and important position in the markets where the sale of the goods we have decided to manufacture will be effected. In spite of the big extensions in our operations, I am pleased to be able to report that the company is not burdened with any mortgages or Debentures other than the small amount received from the Government towards the cost of building the dwelling-houses on the estate.

“I regret that the necessary restrictions placed on publishing figures and also the fact that we have not yet reached a settlement of our claims for allowances under the Munitions of War and Finance Acts prevent me from giving full details of our doings, but I feel confident that when the time comes we shall be able to place on record a statement which will in every way satisfy our shareholders and give them reasons to be proud of their connections with the company.

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January 1920

Extraordinary General Meeting 20th January

The object of the meeting was to pass a resolution to increasing the capital of the company by the issues of £1,000,000 Six per Cent “B” Preference shares. It was carried unanimously.

The Chairman and Managing Director (Sir Herbert Austin KBE. MP) In introducing the resolution he made the following remarks: Gentlemen, Those of you will remember that before the outbreak of war in 1914 the company commenced to increase the capital by £250,000. But with the outbreak of war, many of the contracts on hand at the time were cancelled or reduced. Demand from our own Government and from Russia soon waxed, to the utmost resources of the works, and in a few months necessitated big increases in the building and plant.

It was in the early in 1915 the urgent demand for shells developed into a national emergency, your company stepped into the breach, with other firms and so commenced the manufacture of 18 and 15 pounder shells in large quantities. The arrangement made at Longbridge were so successful that almost every shell-making firm in the country was glad to inspect the methods employed, and we were instructed by the War Office to produce and circulate full details of the tools and operations we used to other contractors for their guidance. In 1916 an 1917 the orders for the 8 inch and 18 ponders shells received could not be delivered in the time scale required. The Government because we did not have the capacity agreed to built two very large workshops, which are now called the North and West Works.

Although the shell production was increased considerable, the demands were made to increase the facilities for the manufacture of aeroplanes and aeroplane engines, armoured cars, lorries, and electric lighting sets at the South Works. Two railways stations have also been laid down adjoining the works, and special train services installed to deal with the passenger and goods traffic. During the past year, the total number of persons employed exceeded 20,000, and the output reached the very large sum of £9,276,717

A definite policy in advance of the cessation of hostilities, a scheme was drawn up and put into operation, which has resulted in us having orders in our books, two months after the armistice was signed, for nearly £4.000.000 of cars, lorries, tractors, and lighting sets. The orders have been given by the keenest and most important firms in the home country, in the Colonies, and in foreign market. Many thousands of trials have been given of the new models, to the complete satisfaction of every one, and orders continue to stream in by every post.

Most of the foreign and Colonial orders are forPeriods of three years, at increasing figures. At no time in the history of automobile manufacture in this country has such enthusiasm been shown by buyers, or such orders placed, and the resources of the whole workshops and plants at Longbridge will be taxed to the utmost. Unfortunately, it will take about four months to change over the shops and rearrange the plant for the new manufacture, but this is now in full swing, and I confidently expect the works will soon be as busy on the munitions of peace as they were a few months ago on munitions of war.

I am feeling certain that the new capital would be willingly subscribed, your directors have arranged for the options to exercised for the purchase of the North and West Works, the terms arrange in the estimation of your board, being quite satisfactory. It is considered that the works are in full swing again they will form the largest and most complete automobile plant in the British Empire. The new capital is being taken up by the Beecham Trust (Limited), of 218 Strand London WC. on terms agreed by your directors on behalf of the company, and it is proposed by the Beecham Trust (Limited) to issue the offer for sale to the public in a few days time.

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June 1920

Sixth Annual General Meeting

The sixth Annual General Meeting of the Austin Motor Company was held yesterday at Longbridge Works, Northfield, Birmingham. After the Secretary Mr A W Jones had read the notice convening the meeting, the directors’ report and accounts for the years ending 1916, 1917, 1918 and 1919 were formally adopted.

The Chairman Sir Herbert Austin KBE then addresses the meeting as follows:- Ladies and Gentleman. This period covers four very strenuous years, during which an immense amount of work was done, but the most trying time was undoubtedly the year 1919, as owing to the difficulties experienced in securing the cooperation necessary from outside contractors to make a rapid transformation to peace-time manufacture, the staff and employees were called upon for efforts even more onerous than at any period of the war.

It is a great relief to say that these efforts have not been in vain, and the policy and programme laid down before the Armistice have been entirely successful. In making this statement I do not wish to suggest that there is any intention of relaxing those efforts. As a matter of fact, the enthusiasm and determination is greater than ever, but I consider that the thanks of the shareholders are due to those responsible for the work done to place the company in the proud position in which it stands to-day.

After the exhausting period which the whole world has lately passed through it is difficult even for the most optimistic to imagine that the future will not bring some troublous times, but in such a case the thoroughly efficient organization and equipment now possessed by the company, backed up by the determination of its and employees, gives the best possible security that could be demanded of an industrial undertaking.

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Accounts 1920-21

Austin Motor Company Accounts

The report of the Austin Motor Company states that the trading loss, before providing for depreciation of stock and tools, for the two years 1920 and 1921 was £381,923 (including normal depreciation of £123,824). The amount written off, stock and tools, the debt due by the Socete Anonyme Austin, and compensation for delayed payments, etc. is debited in the balance-sheet at £1,951,924.and after deducting the balance brought forward and reserves there is a debit to profit and loss account of £1,883,601. the directors consider that it will be necessary to depreciate the following items under the headings of investments at £212,441 along with the Longbridge Estate and flying ground at £247,842 to the extent of about £300,000, and when more normal conditions prevail to review the value of all assets.

Since the date of the accounts the first mortgage notes have been paid off, and a first debenture issued for £200,000. The bankers’ loan has been secured by the issue of second debentures for £285,000, and the Government mortgages £248,000 has been exchanged for third debentures, and about £1,106,650 of the sums due to sundry creditors will be converted into an issue of a fourth debenture.

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January 1923

American Motor Car Competition.
Sir H. Austin On Need For Combination.


In the course of an address at a meeting of the Midland Branch of the National Union of Manufactures in Birmingham today, Sir Herbert Austin MP., said he anticipated that this year we should import 50,000 American made motor vehicles, compared with a home production of 75,000.

In his opinion there were too many motor-car manufactures in this country, and they would probably have to combine and economise to reduce costs. The chief factor in the remarkably low selling price of American cars was the narrow margin of profit which manufactures of component parts permitted themselves. In some cases their charges hardly covered cost. Much could be done by British workers emulation American employees, who worked twice as hard as was the practice here. Mr Wilfrid Hill expressed the view that cooperation among the more substantial firms in the motor industry might be of value. He mentioned that only seven motor firms made profits last year, and he foresaw further losses unless there was amalgamation and collective production.

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21 August 1926

Company Results

The gross trading profits of the Austin Motor Company for the year ending 30th September were £748,800 (against £470.930). from which has to be deducted various charges, leaving a net profit of £447.851(against £161,174). This reduced the debit balance from £1,438,404 to £990,552. Various assets will be written off including £ 165,496 off the Longbridge Estate Laundry and the Flying Ground.

The scheme for effecting a reduction in the capital of the Austin Motor Co. Led. to £2,150,000 by writing off £1,200,000 was submitted yesterday to meeting of the Preferred Ordinary and Ordinary shareholders, and subsequent to an extraordinary general meeting in Birmingham. Because a number of speakers criticised the proposal it was decided to adjourn the meeting.


In November 1927 the company tried again, this time going to Court.

Chancery Division

His Lordship confirmed the petition from the Austin Motor Co. Ltd. for the sanction of the Court to a reduction of the capital of the company.

Mr Bennett, KC and Mr Ceil Turner appeared in support of the petition.

Mr Bennett said that the company, which was formed in 1914, had a nominal capital of £5,000,000 of which £3,350,000 had been issued. It was proposed to cancel £1,200,000.

The losses which the company had sustained were due to the trade conditions at the end of the war. The company had gone in for mass production, and incurred heavy expenses in changing their factories over from war-time conditions to peace-time conditions. Then came the “slump” in trade, and the company suffered heavy loss on that account. The company had, however, been in a prosperous condition since 1922, and had been making annual profits.

His Lordship made an order confirming the proposed reduction.

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October 1927

Austin Distributors & Dealers
Annual Dinner



Responding to the toast of “The Austin Distributors and Agents,” proposed by Sir Herbert Austin, Mr Stanley Anderson, of Johannesburg, said that in South Africa, with the exception of Natal, people showed preference for American cars of higher power than the usual English models. But in the Transvaal we were making steady progress, and I recently persuaded one of the most anti-British Nationalist to buy a baby Austin. He gave it to his wife and she was delighted. (laughter and cheers)

Speaking at the annual dinner of the Austin Motor Company at the Connaught Rooms Covent Garden London, on the 17th October 1927, Sir Herbert Austin said the company was preparing to turn out a light six-cylinder car in large numbers. A German firm had been given permission to construct the “Austin Seven” They were expecting to make arrangements for the manufacture of the car in France and the United States, as there were no prospects of the company being able to export to either of those market.

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August 1928

British cars for New South Wales

In the face of strenuous opposition from America interests, it has been decided that British cars are to be used for the first time in the New South Wales Government Ministerial fleet. The existing American machines are to be scrapped. Orders have been places in England for five high-grade saloons cars, and a 20-70hp limousine has already been delivered to the New South Wales Premier. The decision is of interest, because it is stated that no British car has ever before been used by Ministers of the Crown for their official journeys.