Marcos Engineering Appoints Administrator
Company proceeds to wind down operations
We are aware this is being talked about on some PH forums but we thought it deserved a place on the PistonHeads home page.
Here is the release as we received it. PH sends its thoughts out to all those involved with the company.
October 9th, 2007 - Kenilworth, UK.
Marcos Engineering Limited ("Marcos, the
Company") today announced that it has entered Administration with a view to
completion of existing work in progress. Marcos' plan of dissolution will see the
Company wind up its ongoing business activities, sell its assets and distribute
proceeds and beneficial interests to shareholders and creditors as soon as practicable.
In reaching this decision the Company considered a number of factors including the
Company's current and future strategic and market opportunities and business
prospects, limits on new capital from outside sources, increasing cost of ongoing
capital and prevailing economic conditions.
Marcos was founded in 1959 and went into receivership in 2000. The Company was
restarted in 2002, conducting business as an independent supplier of a new high
performance family of hand built lightweight sports cars that provide a uniquely
exhilarating driving experience. Despite mounting competition from companies with
substantially greater financial, technical, distribution and marketing resources Marcos continued to develop its sports cars that received international acclaim.
As the cost of capital continued to climb and the potential for profit faded, the
Company's Board and management took steps to minimize product and operational
costs while they investigated various strategic opportunities and engaged in
discussions regarding lower cost distribution, alternate manufacturing and external
capital transactions with potential business partners. After reviewing Marcos's
business prospects and potential opportunities, the Company came to the conclusion that Administration of the Company would have the highest probability of returning the greatest value to its shareholders and creditors.
"Regrettably, despite the extraordinary efforts of our employees, suppliers and
dealers, we simply could not attain a profit point, reduce our cost base or raise the
necessary capital to sustain the business", said Tony Stelliga, Managing Director.
"My sincerest gratitude goes out to everyone that worked relentlessly to revive the
Great British Sports Car Company one final time".
Looks like anyone trying to build something new and exciting now is doomed to failure. Tony had a good business head on him and before the exciting bit of designing and building the cars he focussed on streamlining the business and getting everything right, the product while not perfect was damn good, I drove one over two years back now and was so impressed compared to the Cerbera I had at the time.
I guess it just needed more people to put their money where their mouth was and buy the cars, but confidence is key I'd imagine.
A sad day indeed...
I was a huge fan after an uncle did a full restoration of an old 3 liter Marcos, it had possibly the best paint finish I'd ever seen on a car, the most impeccable interior (he owned a car spares place, had friends who did upholstery, other friends that worked in paint shops). Being taken out in that monster after it had been rebuilt when I was about 12 years old left a lasting impression.
Beautiful cars, maybe at some point they can be resurrected? can but hope.
Guess it just shows how tough it is for likes of them, Noble (dare I say)& TVR or any traditional sports car maker in their league.
Hope to see the name back again some day.
All victims of the UK government's fixation with the "Speed Kills" (therefore those who drive performance cars are evil & reckless) message.
I read an interesting article recently about how the Far East will soon be flooding our shores with cheap cars - this has caused what we once thought were middle range marques to move up the ladder and start to focus more on performance rather than practicality, thereby making the market harder for those much smaller marques who've seen their customer move ship...
TT, R8 are just two examples from one marque, many more...
Market forces will always force some out of business.
We all cry about these marques disappearing and yes it is a shame, but just remember that if people were buying them in enough numbers then the business would not close, that's the fact of life. Hard to swallow if you are working for one of these brands that is closing, but true none the less.
Best wishes to all invloved...
Weismann would appear to show that it is possible to offer something that is really compelling to a niche market but then again, I have no idea how financially sound Wiesmann is as a business....
All victims of the UK government's fixation with the "Speed Kills" (therefore those who drive performance cars are evil & reckless) message.
Where does one go now to buy a real "blood & guts" sportscar now?
No, I'm afraid the simple fact is that the minority of people who want these cars are not in a position to pay for them. Clear as day.
Making a niche, British car without bling factor or a big enough niche client base with the money to buy the product is no different from making roller skates for landmine victims. It is commercial suicide.
Hopefully, this is the final nail in a coffin which say the Griff and Chimp as the industry's last hurrah.
Hopefully, this is the point at which the men with the dreams wake up and realise that if we are to continue with this amazing and unique ability to make such wonderful machines it must be done so with a larger overseas market as the core objuective, with UK sales being a nice little bonus.
What are people buying..?
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