LucasVarity
| Company type | Public limited company |
|---|---|
| Industry | Automotive components |
| Predecessor | Lucas Industries plc, Varity Corporation |
| Founded | August 1996 |
| Fate | Acquired by TRW Inc. in March 1999 |
| Headquarters | United Kingdom |
Key people | Victor A. Rice (CEO) |
Number of employees | 55,000 (1996) |
LucasVarity plc emerged as a UK-based manufacturer of automotive components in August 1996, resulting from the merger between British company Lucas Industries plc and the North American Varity Corporation.
History
The roots of LucasVarity trace back to the 1850s when Joseph Lucas started selling paraffin oil in Hockley. Established formally in 1860, the company initially specialized in pressed metal products and expanded its portfolio to include ship lamps by 1875. The 1996 consolidation brought together Lucas Industries, which employed 46,000 people, and Varity, the successor to Massey Ferguson, with a workforce of 9,000.
Foundation
Post-merger, LucasVarity initiated a £65 million efficiency program focusing on treasury, communications, marketing, and divisional management functions. CEO Victor A. Rice highlighted the chance to realign leadership capabilities and expertise at senior levels.
In 1998, management sought shareholder approval to move the headquarters and primary stock listing to the United States. However, this proposal was rejected amid shareholder opposition fueled by concerns over directors’ intentions and executive remuneration. The plan sparked considerable criticism from both investors and the UK media, placing Victor Rice under intense scrutiny.
Sale to TRW
Following this unsuccessful attempt, TRW Inc., an American firm known for its work in satellites, defense systems, and automotive parts, submitted an all-cash bid to acquire LucasVarity. This offer was accepted in March 1999.
Subsequent history
Shortly after acquiring LucasVarity, TRW divested Lucas Diesel Systems to Delphi, a US automotive parts supplier with a significant European footprint, in January 2000. The diesel fuel injection division—formerly known as Lucas Diesel Systems Ltd and previously CAV Ltd—continued global operations except in Japan and South Carolina where plants had been closed. Renamed Delphi, it became an integral part of Delphi’s Powertrain Division.
Lucas Aerospace was rebranded as TRW Aeronautical Systems before being sold to Goodrich Corporation, which later became part of UTC Aerospace Systems.
Later on, Northrop Grumman acquired TRW but subsequently sold its automotive businesses—including Lucas, Varity, and TRW’s own automotive division—to the Blackstone Group under the TRW Automotive name.
In September 2004, Elta Lighting Ltd., a UK-based supplier of automotive electrical components, licensed the Lucas brand and logo from TRW Automotive for use in the UK and European markets. Operating as 'Lucas Electrical,' Elta focuses primarily on aftermarket parts rather than original equipment manufacturing. Initially applied to automotive light bulbs, the Lucas branding extended to light units, batteries, switches, ignition parts, remanufactured starters and alternators, wiper blades, and electrical accessories. Production takes place at various facilities across the UK and internationally.
Operations
At its inception, LucasVarity was structured into seven divisions. The table below outlines these divisions along with their original acquirers, sale years, and current ownership status.
| Division | Original Buyer | Year Sold | Current Owner |
|---|---|---|---|
| Lucas Aerospace | Goodrich Corporation | 2002 | Collins Aerospace (a division of RTX) Safran Flight Controls Rolls-Royce Engine Controls |
| Light Vehicle Braking System | TRW | 2002 | ZF Friedrichshafen |
| Heavy Vehicle Braking System | ArvinMeritor | 1999 | Meritor |
| Lucas Diesel Systems | Delphi | 2000 | PHINIA |
| VarityPerkins (Diesel Engines) | Caterpillar, Inc. | 1998 | Caterpillar, Inc. |
| Electronic & Electrical Systems | Prestolite & TRW | 1998 & 2002 | Prestolite & ZF Friedrichshafen |
| Lucas Aftermarket Operations | Prestolite, ArvinMeritor, TRW, Delphi & Elta Lighting | 1998, 1999, 2000 & 2006 | Prestolite, Meritor, ZF Friedrichshafen, PHINIA & Elta Lighting |