ACHIM:
Matthew, you have now worked for the MMC for 12 years, In that time you have probably experienced more changes than many of its employees have seen in the 30 years before?

MATTHEW:
Indeed.

Charles Morgan has described most of this within his THEORY OF THE THIRTY YEAR CYCLES OF MMC DEVELOPMENT.

In the first 30 year cycle there were the Three Wheelers – inexpensive drivers designed for the whole family. At the time, Morgan was the fourth largest auto maker in England.  The next 30 year cycle was characterized by the sporty 4/4. With the Plus 4 we had a very competitive car and true to the earlier principle of "Win on Sunday, sell on Monday".

In the last 30 years, we have had to deal more with the changes required for statutory provisions dealing with new cars. On the one hand, we went through more rapidly changing legal requirements than ever before and, on the other hand we debuted the Aero 8 in 2000 along with new developments and many improvements to the existing range.

ACHIM:
The automotive industry is suffering as never before. Even large manufacturers, struggling to survive, have died. While other major manufacturers are absent from Auto Shows while MMC celebrates its 100th birthday. So how's business going?

MATTHEW:
Very good - as good as ever.  This year we will probably produce more than 700 vehicles. Despite the enormous extra cost for all of the Centenary activities, the profit will be higher than in other years..

ACHIM:
During the Centenary Celebrations, one could get the impression that the Company was trying to boost turnover by selling entry tickets to the Factory.

MATTHEW:
(Laughing) That was necessary to cover part of the costs for additional services like guided tours and the special exhibition we set up. Nonetheless, it is true, there is an average of 220 visitors per week (and more during the Centenary) coming to the Factory and that has to be managed. There is a new museum and we had to hire additional staff for the Centenary. You cannot get that for free and we cannot ignore those costs.

ACHIM:
During the biggest crisis of automotive industry recorded the MMC their record sales - what's the reason?

MATTHEW:
Because we have the right car! Certainly the publicity around the Centenary has helped to sell more cars.  I am glad that the 100 years celebration happened at this time. The Aeromax and the Life Car are focusing additional attention on our automobile technical Expertise.

We also have a different approach to our marketing We are more aggressive here than in previous years -- and not in the sense of  traditional advertising, but in the use of the Internet to communicate and build events such as the Centenary celebration. More public Relations, more sales promotions, more products A different type of  communication  than is the Morgan was accustomed. In earlier times this is not necessary.

Moreover, we have our market,  a niche market. We think our market is 800 units annually, with a maximum of 1000. At this level, one can respond very flexibly. For peak times, as well as when times are rough.

ACHIM:
When I look at my own experiences with Morgans for the last 12 years, I have found that the quality is getting better. What is the secret?

MATTHEW:
There is really no secret. Many improvements are not even see when you walk through the Factory. Of course, one notices the new paint  shop and the new Aero hall, but the improvements Charles began around 12 years ago, in management and organization, gave a big boost to present  Quality and productivity. We are now much stronger in the IT sector and  equipped with a very efficient component management along with a fully  developed warranty and quality system.

The purchase of parts is our biggest concern: as many parts are so specialized and our small numbers are not easy to source in the quality we need them. Then, when we change things and use high quality mass-made  parts, we are often accused of doing so for cost reasons. But it is this really about quality and availability!

ACHIM:
The MMC has just presented the 125,000£ Aero Super Sports... Is  this the right car at the wrong time?

MATTHEW:
I think not! Our clientele is not as affected by the Recession, as is the unfortunate case with so many others. Of the planned 175 Aero Super Sports, we have already sold half. Together with the growing sales of the other models, we must to choose whether to allow waiting times to rise again!

ACHIM:
Back to our first meeting at Castle Combe on the future the  "traditional" and the U.S. business:  What are the prospects?

MATTHEW:
We will probably be able to comply with the existing European automobile safety legislation with the Trads (the classic Morgan design cars) in the longer term. Our greater concern is that all the proof of  emission and fuel consumption levels must be supplied by us, not by the  engine manufacturer. Many think we must simply offer these certificates  from a large engine manufacture and, with that, have our new car automatically accepted. This is not, unfortunately, the case.

As a rule, the whole acceptance process takes 15-18 months. And, if they change the rules 2 years later, everything must be done all over again  and so on. This ties up our employees and constantly costs us a lot of  money!  (And if a trad was allowed into the US ever again, we would have to build a new factory build there as the demand for one is so great!.).

However, we HAVE passed an incredibly sophisticated U.S. safety test with the new Aero Super Sports: two identical cars rear-end impacted at  a simulated 80 kph (50 mph). Of course, no occupants would survive such  an accident, but the wrecks are required to show that they do not leak  in with this test.  Even Range Rover had to have the entire rear end reconstructed to pass this test!

ACHIM:
However, surely the 4/4 Sport is now the best seller in Europe. Is this a surprise for you?

MATTHEW:
Absolutely not - I am no clairvoyant, but this success was expected. Or, in one sentence: "Who today needs more sport than the 4/4 sports?" It is an absolutely fantastic car and a great way to discover country roads. One does not need to drive it fast to have an experience  you can perhaps only find on a Track. At the same time, it need less fuel and produces correspondingly less emissions than many cars in the lower mid-class. The  4/4 Sport was ranked by a scientific study as the No. 3 most environmentally vehicle world-wide - even ahead of the cleverly marketed the Prius. Many people seem to agree and our waiting list stretches well into next year.

ACHIM:
Today's watchwords.  You presented the Life Car at Lake Como, at the "Villa d'Este". Is there a serious MMC commitment to these new technologies?

MATTHEW:
We take the very, very seriously. And simply not as a marketing measure. Of course, it helps us in that way but we do want to be one of the first sports car manufacturers who new technologies on the market. These do not reply on the electric/plug-in technology (which is certainly the right one for a standard hatchback. But a sports car will probably need a combined hybrid technology. With us working with a highly competent team we are consistently moving towards in an appropriate and exclusive solution.  But we will probably still have to wait about 3 years until we are can showing a working prototype.

ACHIM:
Given all of the large number innovations and negative experiences during the introduction of Aero (and the Roadster), how much change should the MMC customers expect?

MATTHEW:
Yes, we have learned a lot from the past. But we must  distinguish between the Aero and the Roadster.

The Aero was a step too far into the future, or, if you will, a little premature. However, with this Morgan, we were able to establish the guidelines that lead to the acceptance of the Aeromax and the Aero Super Sports.

Nonetheless, it's true. We had a long and hard time. But we persisted and we were always confident we were on the right track. Today's success shows that we were right. We standing now here at Goodwood in front of  a Plus 4 Plus which was also ahead of its time. Who knows what he could have made of it if it had the same opportunities as we gave the Aero?

The story with the Roadster is different. In that case, we were forced to it by the disappearance of the Rover V8 engine -- as there was no other appropriate V8 available.  The bulk of the negative remarks on our engine choice came from Germany. That was not surprising as the +8 has dominated the Morgan image and the market in Germany.

It is always difficult, when one has a perfect icon, to find a suitable successor - but we had simply no other choice. However, we now produce as many as it did Roadsters as we did Plus 8s.

ACHIM:
With the Aero Super Sports being one of the leading Cars in the  FIA GT 3 championship, are there other plans for motor sport?

MATTHEW: Well, we shall continue to engage in the FIA GT3. This is an important marketing tool for us. Additionally, we will continue to provide our customers with special ready-to-race packages. For the  Roadster, for example,  the Lightweight model provides. There are also racing packages for the 4/4 Sport. But we have no racing programs planned other than the FIA GT3.

ACHIM:
During the last race in Estoril (Portugal in June 2009), both Aeros received a 10sec time penalty. What happened?

MATTHEW:
The FIA introduced new noise limits and all entrants had to have their exhaust systems modified. Noise levels were measured at the Technical Scrutineering. The officials had insisted that, the appropriate design documents be filed the previous week showing what we had done. But the date of filing documents was a holiday and it was not handled very well and regarded as a  "late filing".  In such a case, the Rules assign a time penalty.

ACHIM:
A lot of effort for a "training trip"  to Portugal ...!

MATTHEW:
That's racing! But the costs are still somewhat adequately controlled and we are confident. We are in the 1st Running for the best time from 3 laps in the pits driven and have our gear packed. Still, it is a pity about the missed points that we would certainly have earned if we could have competed.

ACHIM:
One last question, even if they the biggest secret in Malvern concerns: Will there be a Trad body on an Aero chassis?

MATTHEW:
Definitely NOT!

Firstly, we currently see no danger that the current trad no longer be allowed in Europe. Therefore, there is no reason to make design such a thing. Secondly, it would require a completely new rear end to be constructed and that would mean such a car would no longer look like a Morgan.

We would rather concentrate on our 4/4 and Roadster range --and build them as long as possible while we develop new and exciting sports cars like the Aero Super Sports!