It's a hostile environment for small scale manufacturers of cars but not one the new chairman of AC, a former deputy supreme allied commander of NATO forces in Europe, is scared of, writes OLIVE KEOGH
LEGEND HAS IT that the reason there are speed limits on UK motorways is because a prototype of the AC Cobra was driven at 196mph up the newly opened M1 in 1964 to the outrage of police and parliamentarians alike. Whether this is true or not hardy matters. It’s a good story and one that has helped give the UK’s oldest car brand its iconic status among sports car enthusiasts worldwide.
AC has been making cars since 1901 when engineer John Weller, backed by wealthy butcher, John Portwine, set up a small engineering workshop in south London. Since then the company’s history has been colourful and chequered. Bought by current owner Alan Lubensky in 1996, it has struggled in recent years.
However, the unveiling of an ambitious four model line-up at this year’s Geneva Motor Show signalled a renaissance for AC with an ex-NATO commander in charge of making it all happen.
General Sir Jeremy Mackenzie might seem an unlikely choice as a small car firm chairman, but he says “I don’t need to know how to make cars”.
“It’s about bringing disparate parties successfully together. The more senior you become in the army the further you are from the man with the bayonet. Your role becomes strategic. Your job is to work with layers of command to ensure everyone is facing in the same direction,” he says.
Mackenzie was commissioned into the British army in 1961 and held a number of senior commands, including commanding officer of the 1st Battalion Queen’s Own Highlanders and commandant of the Staff College in Camberley. In 1992 he formed the allied command Europe rapid reaction corps and became its first commander. In 1994 he became deputy supreme allied commander Europe and was responsible for coordinating troops from over 30 countries in Bosnia and Herzegovina. He retired from the army in 1999 and became governor of the Royal Hospital Chelsea. He held this position until 2006. He was appointed chairman of AC cars in January this year.
As former deputy supreme allied commander of NATO forces in Europe, the general had 55,000 troops under his command. The numbers involved with AC will be considerably smaller, closer to 55.
Nevertheless, the mission is equally critical if the company is to prosper in a world where scale is king.
Despite being a big AC fan, Mackenzie is under no illusion about the task that lies ahead. “The environment is very unfriendly to small car producers because it’s difficult to produce enough volume to make money without proper manufacturing capability,” he says. “AC has suffered from a series of false starts in recent years and its biggest problem was the lack of a secure manufacturing base.”
To solve its production issues AC has embarked on no less than three manufacturing joint ventures. Success hinges on all three running smoothly, which is where the general comes in. “The army is like a clock, you need all of the cogs working together. This is no different. I’ve been used to handling 33 ‘parts’. Managing three doesn’t faze me,” says Mackenzie.
Manufacturing in the UK will be at the new AC Heritage Centre in Surrey, owned by classic car fan Steve Gray. This facility will make the Cobra MkII classic aluminium, the company’s most expensive car at around £150,000.
The GT Zagato and the Cobra will be manufactured in South Africa by Jimmy Price, the former manufacturer of Noble sports cars. The MkVI will be made in Germany by AC Automotive which already produces hi-spec and bespoke Cobra models.
Mackenzie is clearly relishing the challenge of “gripping” the three elements and moulding them into a business he hopes will go global. “Grip is an army expression for giving people the freedom to do their best but making sure they head in the same direction,” says the 71-year-old and self-confessed “car nut” who drives an Audi R8 sports car. “The worst mistake you can make as a manager is to do everyone elses job for them. My style is ‘hands off’ while keeping a close eye.”
Mackenzie sees his job as meeting the aspirations of those behind AC and customers alike. “AC produces a wonderful product but we need to support it with good service, spares back up and specialised dealers,” he says. “We have not finalised the numbers yet as to how many units we need to make, but Jimmy Price’s operation made 900 Nobles so we know that’s possible.
“The biggest difference between business and the military is that business makes money and the army spends it. That said, there is a real skill involved in sticking to spending budgets. The other challenges for AC are the same as for any business – get the costs down and the cash flow right.”
Typical buyers of AC cars are men with money who usually have an AC as their second car. And while most car manufacturers are falling over themselves to introduce new technology, AC is doing the opposite. “We are meeting a need for classic cars. Their beauty is in being reliably low tech. We’re at opposite ends of the spectrum when compared with Ferrari, for example. Anyone handy with a spanner can work on an AC,” Mackenzie says.
“Where innovation comes in is making sure the cars are fit for modern roads and meet all the necessary legislation. The challenge is in balancing the heritage with the present. There is also the issue of surviving in a world where people often question whether there is a place for micro producers. My answer is yes. There will always be enthusiasts who want cars like ours. We will keep the brand exclusive and each car will be on a register. Genuine ACs will appreciate in value. There are few car manufacturers that can offer that.”
AC appears to fly in the face of the commonly held view that companies that don’t innovate will fail. Paradoxically, AC’s unique selling point is its history.
