LucasVarity plc was a UK automotive parts manufacturer, created by a merger of the British Lucas Industries plc, and the North American Varity Corporation in August 1996.
 | |
| Industry | Automotive and aerospace |
|---|---|
| Founded | 1996 |
| Defunct | 1999 |
| Fate | Acquired |
| Successor | TRW Inc. |
| Headquarters | United Kingdom |
Key people | Victor A. Rice |
| Products | Braking, diesel systems, diesel engines electrical, aftermarket and aerospace systems |
Number of employees | 55,000 |
| Subsidiaries | Lucas CAV/Simms/RotoDiesel/Condiesel, Girling, Lucas Automotive, Lucas Aerospace, VarityPerkins |
History
editLucasVarity traces its history back to the 1850s when Joseph Lucas, a jobless father of six, sold paraffin oil from a barrow cart around the streets of Hockley. In 1860, he founded the firm and his 17-year-old son Harry joined the firm around 1872.[1] At first it made general pressed metal merchandise, including plant pot holders, scoops and buckets, and later in 1875 lamps for ships. Together with the historic Canadian farm equipment maker Massey Ferguson the company was formed in August 1996, by the merger between what was then called Lucas Industries plc and the North American Varity Corporation, successor to Massey Ferguson.[2]
Foundation
editAt the time of the merger, Lucas employed 46,000 people compared with Varity's 9,000.[3] LucasVarity announced plans for a £65 million pound savings programme. The areas streamlined included the treasury, communications and marketing departments, as well as divisional managers. "The merger created a unique opportunity to reassess the skills and competencies we require in the senior management team", said LucasVarity Chief Executive Victor A. Rice.[3]
Attempted relocation to the United States
editIn 1998, the management attempted to shift the company's head office and primary listing to the United States. The company suffered an embarrassing defeat in a shareholder vote, amid claims that its directors were looking to cash in on the much higher pay packets available in the United States. Victor Rice suffered a barrage of criticism from shareholders and the British media.[4]
Sale to TRW
editFollowing this defeat, an offer was made by TRW, an American company specializing in satellites, defence and automotive parts, to purchase the company in an all-cash offer, which was accepted in March 1999.[5]
Subsequent history
editTRW quickly sold Lucas Diesel Systems to Delphi, which was then a USA based automotive parts and systems manufacturer with a large presence in Europe, during January 2000. The diesel fuel injection equipment research, engineering and manufacturing business of Lucas, known in later years as Lucas Diesel Systems Ltd (and previously CAV Ltd) continues at all of its original worldwide sites (with the exception of those in Japan and South Carolina, USA which had closed by this time). The business name has been changed to Delphi and the business is a major part of its Powertrain Division.[6]
Lucas Aerospace (by then called TRW Aeronautical Systems) was sold to Goodrich Corporation,[7] which itself is now part of UTC Aerospace Systems.
TRW itself was later acquired by Northrop Grumman, who sold the automotive assets of Lucas, Varity and TRW's own automotive group to the Blackstone Group as TRW Automotive.[8]
In September 2004 Elta Lighting Ltd., a UK-based automotive electrical components supplier, acquired a license from TRW Automotive to use the Lucas name and logo on products in the UK and Europe. This saw the familiar green and white 'Lucas' logo return to the UK after several years absence. Now trading under the name of 'Lucas Electrical' the company concentrates on after-market component supply rather than as an original equipment supplier to manufacturers. Initially the Lucas name was used on Elta's existing product of automotive light bulbs but has been gradually expanded to cover much the same range as the original Lucas company- light units, batteries, switches and controls, ignition components, remanufactured starter motors and alternators, wiper blades and electrical accessories. Operations and manufacturing take place at several locations in the UK as well as overseas.
Operations
editAt formation LucasVarity was managed in seven divisions. The current ownership of these divisions is detailed below.
| Division | Original Buyer | Year Sold | Current Owner |
|---|---|---|---|
| Lucas Aerospace | Goodrich Corporation | 2002 | Collins Aerospace (part of RTX) Safran Flight Controls Rolls-Royce Engine Controls |
| Light Vehicle Braking System | TRW | 2002 | ZF Friedrichshafen |
| Heavy Vehicle Braking System | ArvinMeritor | 1999 | Meritor |
| Lucas Diesel Systems | Delphi | 2000 | PHINIA |
| VarityPerkins (Diesel Engines) | Caterpillar, Inc. | 1998 | Caterpillar, Inc. |
| Electronic & Electrical Systems | Prestolite & TRW | 1998 & 2002 | Prestolite & ZF Friedrichshafen |
| Lucas Aftermarket Operations | Prestolite, ArvinMeritor, TRW, Delphi & Elta Lighting | 1998, 1999, 2000 & 2006 | Prestolite, Meritor, ZF Friedrichshafen, PHINIA & Elta Lighting |
References
edit- ^ History of Lucas Competition Commission Archived 26 July 2011 at the Wayback Machine
- ^ Two automotive part makers agree to merge
- ^ a b UK to bear brunt of Lucas cuts
- ^ Tight vote on Lucas Varity move to US
- ^ TRW is near deal to buy Lucas Varity
- ^ Delphi buys Lucas Diesel
- ^ Goodrich buys TRW's aeronautical arm[dead link]
- ^ Northrop Grumman agrees to buy TRW for $7.8bn in stock