Fifty years since the production line halted…

In 1971 Innocenti finally ceased production of the Lambretta scooter. There were many reasons for this happening, some which had taken place more than a decade before…

In 1971 Innocenti finally ceased production of the Lambretta scooter. There were many reasons for this happening, some of them taking place more than a decade before…

World domination in any given market is what most companies dream of, outselling all others in the field and appearing invincible, regardless of the competition. So how was it that in May 1971 it all finished, and the final Lambretta scooter rolled off the production line at the huge Innocenti factory in Milan? Only a decade before, they held the title of the biggest seller of two-wheeled vehicles both at home and abroad (in the UK). Such was their might and dominance, that at one point many companies gave up even trying to compete with them… so how could it all end just a few years later?

It wasn’t an overnight collapse of the company, or fierce competition that pushed Innocenti out of the market. Quite the opposite, in fact; a series of events over several years all cumulatively played out to cause the downfall of the Lambretta scooter. Some issues were due to mismanagement and poor decisions by Innocenti themselves, whereas others were due to external factors that, unbeknown to anyone, would ultimately play an important part of the story which unfolded. To understand it better it’s easier to put the significant events in a timeline, one that goes back further than anyone could imagine…

1959

It seems quite ironic that in the year that the Lambretta outsold any other two-wheeled vehicle in the UK, that it would be the location for the first event in the story. On August 5, 1959, an agreement was signed between the chairman of the British Motor Corporation (BMC) and Innocenti of Milan for both Austin and Morris cars to be built there under licence. At the time it seemed like a good idea, not only to forge stronger links between the UK and Italy but also boosting trade for the Innocenti factory. However, in years to come, it proved to be disastrous for the Lambretta scooter, as BMC became known as British Leyland and it was they who would take over the factory and in doing so, make the final decision to stop Lambretta production.

1962/63

In 1962 the TV175 Series 3 was launched and became the first production twowheeled vehicle in the world to be fitted with a front disc brake. A year later in the spring of 1963, the TV200 would be introduced and become the first 200cc Lambretta. Though slightly over-geared, it was (in the right conditions) capable of 70mph. Again equipped with a disc brake, it showed just how advanced Innocenti were in their design. Though not part of the reason for the downfall of the Lambretta, it must be included because after this date the Lambretta was never developed any further. The SX and GP series had different styling and minor improvements, but they were only upgrades of the existing design, meaning that by 1971, the Lambretta was ageing and fast becoming an out-of-date concept.

1966

This was the year that marked the sad passing of the company’s founder Ferdinando Innocenti. It was a huge shock to both the family and the company alike, one which they struggled to overcome. With him gone the board lacked the leadership, direction and drive which he created, and they began to lose control of the company.

1967

In 1967 the UK prime minister was Harold Wilson, and the country under Labour control was in dire financial trouble. In a frantic move to bolster UK exports, they decided to devalue the pound. For Lambretta Concessionaires this was a disaster, as it added 20% on to the price of a Lambretta overnight. This was of huge concern to Peter Agg as he now felt that

Lambretta was too expensive for the target customer. With Lambretta Concessionaires selling a third of all Lambrettas which Innocenti ever produced, it meant that sales would begin to significantly drop off.

1968

During that year Innocenti unveiled project 137, which was a twin-cylinder 200cc Lambretta. It had many changes to any previous model and many technological upgrades. Unlike previous years, Innocenti now needed a big order from the UK to financially guarantee production… but it failed to materialise. Costing more than any other Lambretta, combined with the devaluation of the pound in 1967 and a rise in purchase tax, it was far too expensive. Peter Agg feared being stuck with a huge amount of stock if they failed to sell, so simply never put an order in. This decision meant that Innocenti shelved the project and the result of this was the Lambretta never received the development it so desperately needed.

1969

In 1969 the Grand Prix was launched and though its Bertone-styled bodywork looked stunning, the rest of the machine was using the old-fashioned technology first introduced on the TV range back in 1962. With scooter sales generally in decline, it didn’t help to have an out-of-date model to lead the way. In the UK Peter Agg was having serious doubts about the Lambretta, as the way

Peter Agg feared being stuck with a huge amount of stock if they failed to sell, so simply never put an order in. This decision meant that Innocenti shelved the project and the result of this was the Lambretta never received the development it so desperately needed.

forward for the future. With the Japanese invasion into the two-wheeled market becoming a bigger threat he made a big decision… Suzuki GB was a failed business venture and in need of someone experienced to take it over. Along with Maurice Knight, the company’s sales manager, the pair of them decided to take on the ailing company. The decision was made easier because of the worry over Innocenti and its financial situation and should anything happen, at least they would have another brand ready to take its place.

The other and significant event of 1969 was what became known as ‘The hot autumn’. With conditions and pay for workers in the industrial north of the country being very poor, a series of strikes erupted. The industrial action had begun in 1968 but it was the autumn of 1969 where mass strikes, rioting and factory lockouts took hold, running well into 1970. At the time Innocenti had three divisions: heavy engineering with 1700 workers, the Lambretta motor vehicle plant with 1400, and the car factory with 1500. It was the heavy engineering sector where the strike first took hold at Innocenti, in support of the Pirelli tyre workers in Turin who had sparked huge protests and support. The rest of the factory soon followed, and the result was a nine-month strike where Lambretta production almost halted.

1970

By the time the labour force returned to production Innocenti was in dire financial trouble. With workers’ demands agreed to, it resulted in bigger wages and this translated into more cost on the price of a Lambretta. Agonisingly in the UK, the new look of the GP was helping it sell well, but due to the huge loss of production time, supplies were sporadic and hampering sales. Things were a mess.

1971

BMC was now called British Leyland and the company had bold plans for the future; to get a bigger foothold in the overseas market they wanted to expand production but needed a base in Europe to do so. Innocenti, having produced their cars under licence since 1959 with its modern plant, was seen as the ideal location. With Innocenti almost bankrupt by this time, thanks to poor decisions and the crippling effect of strikes in 1969, they were an easy target for a takeover. And so it was after months of negotiations that in April of 1971 the deal was done for British Leyland to take Innocenti over.

The man put in charge of running the new company was Geoffrey Robinson, who had helped broker the deal to buy Innocenti. The plan now was to ramp up car production and this meant other divisions needed looking at to see if they were still financially viable. The Lambretta scooter, by this time, was very outdated. To make it competitive again, it would need significant investment to move forward and compete with the Japanese companies like Honda and Suzuki. With sales struggling it didn’t make for good reading. With the Italians’ attitude changing towards the cheap motor car, thanks to the Fiat 500, and in the UK the Mini, the writing was on the wall. It was for these reasons that Mr Robinson stopped production of the Lambretta with immediate effect, seeing the car as the way forward for the business.

If only

Looking back, if different decisions had been made, then the Lambretta would probably have survived. Peter Agg mentioned years later that he felt guilty, as it was he who introduced BMC to Innocenti in the first place. In saying that, when things weren’t looking good, he soon baled out by purchasing Suzuki GB and putting his resources into that, which he turned into a huge success. He did explain that, to him, the Lambretta was just a commodity whose place Suzuki took… so was there any real love or loyalty towards the brand?

If Innocenti had developed the Lambretta straight after the TV200 then it wouldn’t have been so outdated by the time British Leyland took over; Piaggio did the right thing with the Vespa, and that is still in production today. So the demise of the Lambretta really started in 1959, with there having been an ongoing set of circumstances which cumulatively contributed to its demise in 1971. Here is the ironic thing though… Peter Agg did okay out of it, becoming a millionaire, and in the process, making even more money out of Suzuki. Not only that, but because of it, he set up a Grand Prix team with Suzuki and in finding Barry Sheene, made him a world champion. Whereas British Leyland, with their huge plans, fell foul of poor management and by 1976 Innocenti, the company they took over, went bust. As for the Lambretta, by finishing in 1971 it secured its place in history and has been revered ever since. So, though others may have caused its downfall, 50 years later it’s the only part of this story that still continues to thrive.

Words and pictures: Stuart Owen

The l etter dated August 5, 1959 announcing the collaboration between BMC and I nnocenti which, i n the end, was the downfall of the Lambretta.

The l etter sent out to dealers i n April 1969 announcing that Peter Agg had taken over Suzuki GB.

Left: The l aunch of the TV Series 3 range i n 1962 was the l ast time any significant development of the Lambretta occurred.

Above: Project 137 – the twin- cylinder had many technological advances but failed to reach the production stage.

A similar l etter to the Trojan group which mentions other members of the Lambretta board being i nvolved i n Suzuki GB.

Far l eft: Peter Agg, though l oyal to the Lambretta brand, also regarded i t as a commodity. I f the future of the Lambretta was i n doubt then he decided he must l ook elsewhere to keep his empire going. Left: Maurice Knight, Lambretta Concessionaires sales manager, was i nstrumental i n setting up Suzuki GB as he too was worried about the problems at I nnocenti.

A l etter dated May 1971 highlighting the problems at I nnocenti but that supplies should continue i n August – however, a few days l ater British Leyland finished production altogether.

All the fanfare of the Grand Prix l aunch couldn’t hide the fact technically i t was outdated and that the Lambretta needed significant development and funding to do so.

The huge I nnocenti works i n Milan were the I deal place for British Leyland to set up a manufacturing plant i n Europe. Unfortunately, the Lambretta was not to be i ncluded i n those plans once they took over.

The production l i ne at I nnocenti was well capable of producing new models and was seen as one of the best automotive factories i n Europe.