At the dawn of the 20th century, Great Britain was a global industrial powerhouse. Car production had begun in the late 19th century, but the dominant designs were German and French. That changed when Herbert Austin, a talented draftsman, engineer, and brilliant manager, decided to create a distinctly British luxury car. Learn more at birmingham1.one.
Training, Work, and a Passion for Cars
Herbert Austin was born in 1866 in Buckinghamshire. His father was a farmer who, in 1870, was appointed a court bailiff in Yorkshire. After finishing school and a commercial college, the young man worked for his uncle, where he showed a talent for architecture. In 1883, Herbert moved to Australia to live with another relative, working for several years at an engineering company, a foundry, and an agency that produced gas engines. By 1887, Herbert had become the manager of a business that made parts for sheep-shearing machines. Over the following years, he worked for various engineering firms, including the Wolseley Company, which had started producing parts for bicycles and machine tools.
From a young age, Herbert Austin was fascinated by automobiles, a passion that grew during his long journeys across Australia. He recognized the urgent need for a new type of vehicle with a gasoline engine. Over several years, he single-handedly built a three-wheeled car with tiller steering and experimented with its design. In 1901, Herbert was recognized at the 1000 Mile Great Britain Trial for a four-wheeled car he developed, powered by a horizontal single-cylinder engine.
In 1901, the Wolseley Company opened an office in Birmingham to begin car manufacturing and invited Austin to take a leadership role, bringing him back to the UK. Over the next four years, the company’s cars gained international acclaim. However, due to differing views with management, Herbert Austin resigned to start his own business.
The Founding and Growth of the Austin Motor Company
Herbert Austin spent a long time searching for a location for his new venture. He eventually found a derelict printing works in Longbridge, a suburb of Birmingham, that had potential for expansion. And so, in 1905, with financial backing from friends, the Austin Motor Company was founded with a share capital of £20,000. Even before the deal was officially signed, Herbert had already begun work and presented his model designs at an auto show. In 1906, the first car, the “Endcliffe Phaeton,” was released with a price tag of £650.
In its first year, the company produced 120 custom-ordered cars. New skilled craftsmen had to be hired, and the number of employees grew to 400. One of the reasons for this rapid success was Herbert Austin’s remarkable versatility and his ability to manage the entire production process, from the initial drawings to marketing.
In 1909, a more powerful model, the “Swift,” was released. By 1913, the engine power in Austin cars had increased sevenfold. That same year, the Austin Motor Company began manufacturing trucks. After producing nearly 2,000 units, Herbert decided to cease truck production and focus exclusively on cars.
The War Period
Before the start of World War I, the company employed 2,000 people. During the war, the Austin Motor Company scaled back car production and shifted to the defense industry. All of the factory’s resources were dedicated to manufacturing munitions. With government orders pouring in, the company’s share capital was doubled, and its facilities were expanded. By 1918, the workforce numbered over 20,000, consisting mainly of women. The factory also began producing aircraft, for which a small airfield was built on-site. In total, during the war, the company produced 2,000 trucks, 500 armored cars, 2,000 fighter planes, over 6 million shells, ambulances, generators, and searchlights.
For his wartime contributions to the nation, Herbert Austin was knighted and awarded the Commander of the Order of Leopold from Belgium. His engineering talents were also recognized, and he became a member of the Institute of Mechanical Engineers.
In 1917, Herbert lost his only son in the war. He decided to throw himself into his work while also pursuing a political career. Austin was elected as a Member of Parliament and served for six years.
Decline and Revival of the Austin Motor Company
After the war, the company still had 20,000 employees, but government contracts had ended. The factory returned to car production. Herbert adopted Henry Ford’s methods and introduced the mass production of a single model. The new car was the “Austin 20,” with a 3.6-liter engine. However, only 2,700 cars were sold between 1920 and 1921, and the company plunged into a deep financial crisis. A decision was made to produce a smaller model, the “Austin 12,” with a 1.6-liter engine, to make the vehicle more accessible to consumers. The new £550 model became quite popular and was widely used by taxi drivers in London.
However, these two models failed to generate enough profit, and Herbert Austin was on the verge of closing the factory. He famously left the decision to fate and tossed a coin—luckily, it landed in his favor. To commemorate this pivotal moment, the half-crown coin was embedded into the paneling of his office desk. To ensure the company’s survival, workers were offered a deal: work for one month without pay to save the factory from bankruptcy in exchange for a guaranteed job for life.
In 1922, the legendary “Austin Seven” was unveiled. With an engine under one liter, it launched a new class of small, affordable cars, which led to a massive expansion of production and the implementation of an assembly line. Over the next 16 years, nearly 300,000 “Austin Seven” units were manufactured, varying in technical specifications and design.
Furthermore, the small engine size resulted in a tax bill three times lower compared to cars from other manufacturers. The factory was producing 25,000 cars annually and became a major engineering hub with its own foundry, body assembly, painting, and final assembly workshops. The company expanded its lineup to include commercial models, tractors, and light aircraft like the “Austin Whippet.” By the 1930s, many car owners had become devoted fans of the Austin Motor Company brand, choosing its products for life.
WWII, Post-War Years, and the End of an Era
In the latter half of the 1930s, Herbert Austin’s company was brought into the “shadow factory” scheme to aid in rearmament, as the government considered another war inevitable. The factory began developing new types of aircraft.
The distinguished entrepreneur passed away in 1941, and the company’s leadership was taken over by its financial director, Ernest Payton. During World War II, the Austin Motor Company produced a staggering amount of military equipment, including magazines for automatic rifles and machine guns, anti-aircraft guns, engines for ships, lifeboats, gun turrets, military vehicles, and bombers.
In the post-war years, Great Britain focused on exporting cars to the United States, which led to the development of new Austin models. Releases included the “Austin 16 HP,” “Austin FX3,” “Austin FX4,” “Austin Devon,” “Atlantic,” and many others.
In 1952, the Austin Motor Company ceased to exist as an independent entity when it merged with its rival, Morris, to form the British Motor Corporation (BMC), which aimed to uphold the traditions of the once-pioneering brand.
The Austin Motor Company was defined by its relentless pursuit of improvement. Thanks to their exceptional design and reliability, Austin cars became true gems of the automotive world.
