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George Simpson, Baron Simpson of Dunkeld
From Wikipedia, the free encyclopedia
George Simpson, Baron Simpson of Dunkeld (born Dundee, 2 July 1942) is a Labour member of the House of Lords. He was made a Life peer as Baron Simpson of Dunkeld, of Dunkeld in Perth and Kinross in 1997. In the late 1980s and early 1990s Simpson gained a reputation for turning around struggling companies, however as previous CEO of Marconi plc he presided over one of the largest collapses in British corporate history.
Simpson joined The Rover Group from its subsidiary Leyland-DAF in 1988 and took over as managing director in January 1989.[1] Simpson reorganised the company, replacing the three boards of Austin Rover, Land Rover and the Rover Group with one single board.[1] By this time Rover had been privatised and sold to British Aerospace (BAe) and by early 1990 Simpson had been appointed to the BAe board.[2] In September 1991 Simpson also assumed the role of Rover chairman when the previous chairman, Sir Graham Day, was appointed as BAe's interim chairman. Day promoted Simpson to deputy chief executive of British Aerospace in December 1991 to "to toughen up" the company's management.[3] He remained executive chairman of Rover but was replaced as managing director.
In November 1993 he was announced as CEO of Lucas Industries. At this time Simpson was admired for his role in turning the struggling Rover business around.[4] Before he assumed his Lucas role he was part of the sale of Rover to BMW. He had been part of negotiations which would have seen Honda increase their 20% share in Rover to 47.5% with the aim for a stock market flotation. However BMW offered £800 million for the Rover Group which would free BAe from Rover's "quite large appetite for cash", average daily debt of £200 million and £700 million of other commitments.[5] Simpson travelled to Japan to ask if Honda could match the offer, which they refused to do.
On 1996-03-18 Simpson was confirmed as managing director of GEC as replacement to Lord Weinstock. In reporting the appointment The Independent said "some analysts believe that Mr Simpson's inside knowledge of BAe, a long-rumoured GEC bid target, was a key to his appointment. GEC favours forging a national 'champion' defence group with BAe to compete with the giant US organisations." In 1999 he sold GEC's defence business, Marconi Electronic Systems, to BAe for £7.7 billion and repositioned the company as a major player in the telecommunications industry as Marconi plc.
Marconi borrowed heavily to finance expansion into this market and was especially vulnerable to the burst of the dot-com bubble. After a "botched" profits warning in July 2001 Simpson's deputy chief executive, John Mayo, resigned. A second profits warning in September 2001 saw Simpson and chairman Sir Roger Hurn resign.[6]
The effect of this collapse was felt long after Simpson's resignation; despite a major restructuring the company continued to struggle until 2005 when the loss of a major BT contract forced the company to seek a buyer. Marconi was purchased by Ericcson in 2005. Several businesses not acquired by Ericcson became telent plc.
- ^ a b Williams, Ian. "Rover gears up with a shuffle; Rover Group", The Times, Times Newspapers Limited, 1989-01-08. Retrieved on December 13, 2006.
- ^ "Honda's backroom role in fly-drive synergy; the conclusion of a series on British Aerospace examines its car and other diversifications", Financial Times, The Financial Times Limited, 1990-02-02, p. 12. Retrieved on December 13, 2006.
- ^ Betts, Paul, Hill, Andrew. "BAe strengthens top management", Financial Times, The Financial Times Limited, 1991-12-11, p. 24. Retrieved on December 13, 2006.
- ^ Tieman, Ross. "Simpson quits Rover for tough Lucas challenge", The Times, Times Newspapers Limited, 1993-11-18. Retrieved on December 13, 2006.
- ^ Lorenz, Andrew, Lynn, Matthew. "BMW drives in", Sunday Times, Times Newspapers Limited, 1991-02-06. Retrieved on December 14, 2006.
- ^ Barker, Thorold. "A year in the life of an industry leader", Financial Times, The Financial Times Limited, 2001-12-18, p. 4. Retrieved on December 14, 2006.