Torotrak: squirming for survival

Torotrak plc, well known for the paucity of late of vital shareholder information, is expected to make a statement later this month about Flybrid Automotive.

The founders of Flybrid Automotive are looking to extricate themselves from what appears on the surface to be the debris of Torotrak Plc.

Flybrid developed a name for itself through its flywheel technology (and patents) – a means of absorbing energy which, at a later stage can be released as a device to improve fuel economy, or boost power output.

In a statement, Torotrak plc, a developer and supplier of emissions reduction and fuel efficiency technology for vehicles, announces that, further to the announcements on 28 November 2017 and 1 December 2017, the Board has received notification that Jonathan Hilton and Douglas Cross have filed an application for administration for Flybrid Automotive Limited. application is listed for hearing on 15 December 2017.

The Board meet with its administration advisers to consider if any value can be generated from its assets or whether the Company should to be put into administration.

The Company will make further announcements in due course.

It may be recalled that Hilton has recently completed a year as president of the UK’s Institution of Mechanical Engineers.

Hilton joined the Institution as a young member in 1982 when he started his engineering career with Rolls-Royce military engines group at Leavesden, Hertforshire. Completing the Rolls-Royce undergraduate training scheme and graduating from the Hatfield Polytechnic, Jon took a first appointment in helicopter engine design.

His passion for engines led him to Formula One and in 1991 he moved to Cosworth where he rose up the ranks from engine designer to chief engineer of the F1 programme by the end of 1997. In 1998 Jon moved to the TWR Arrows team as chief engineer of the F1 Engines group and here he built up a team of skilled engineers to design and develop F1 engines for TWR.

In early 2003, Hilton moved, along with the whole of his F1 engines team, to Renault F1 where he formed the UK based engine division for the team. As technical director Engine Division, Hilton was involved with a successful period for the team, which won driver’s and constructor’s Formula One World Championships in 2005 and 2006.

In January 2007, Hilton with former Renault F1 colleague Doug Cross, formed a new engineering company called Flybrid Automotive to develop high-speed flywheel based hybrid systems for automobile application.

As managing director, Hilton ran the company providing direction for all activities and with prime responsibility for commercial aspects of the business until January 2014, when Torotrak PLC acquired the company. Hilton occupied a non-executive role as deputy chairman of the parent company.

Hilton has held various official posts at the Institution including chairman of the Midland Region, chairman of the Automobile Division and chairman of the Formula Student organising committee.
Two years ago, in August 2015, following a  period of “resetting the strategic focus of the fgroup to commercialise its technology”, new Torotrak chief executive officer Adam Robson saw Torotrak’s key markets as being bus, off-highway and passenger car with KERS (kinetic energy recover systems) and V-Charge appearing to take centre stage compared with the company’s original focus of development, namely infinitely variable transmissions (IVTs). Hmmm.

Interestingly, it is understood Flybrid Automotive Ltd cost Torotrak plc of the order of £11 million in 2014 with a potential further £15 million should performance targets be met. Unsecured loan notes of £1.8m, were given as part of the deal, and were repayable subject to certain commercial targets being met. It is possible these form part of the current dispute. 

A few FTSE companies show their shareholders utter disdain by failing to correctly 'reward' them; Torotrak plc is certasinly one of them.

It now remains to be seen what happens to the technology, know-how and patents stored within Torotrak – and the value placed upon  them.

Torotrak signals the end of an era

Preston-based Torotrak, a developer and supplier of emissions reduction and fuel efficiency technology in vehicles, is to close its Leyland headquarters and make all staff based at the site redundant.

This is indeed the end of an era. But the end cannot be allowed to pass without some comment being made. For it seems that faith has been lost in the concept of traction drive transmissions which had its heart in Leyland, Lancashire for so many years.

This is an era that many people have forgotten about. Or not even aware. Some may regard it as a nostalgic era, when the future appeared not only bright but lucrative.

The era extends back at least until around 1962 (the actual date is unclear as one of the principal participants is no longer alive) when a 1957 Hillman Minx fitted with a Perbury continuously variable transmission (CVT) covered some 25,000 miles of testing to prove the capabilities of the CVT developed by Forbes Perry of Perbury Engineering Ltd.

Perbury Engineering developed a CVT for a car project centred within the British Technology Group (BTG and formerly NRDC) out of which blossomed Torotrak plc based at Leyland in Lancashire where there was also a CVT programme, again based on the Perbury design.

The era certainly embraces BL Technology, a small part of British Leyland, tasked with exploring new technology and based at Gaydon, in Warwickshire – now the home of Aston Martin and JaguarLandRover. Perbury-type transmissions were developed on this former RAF airfield site.

It is fair to say that designs of the Perbury transmission were based on the Hayes transmission (once fitted to Austin cars), it being the point at which Forbes Perry’s designs began to evolve and improve this type of transmission. He probably started serious work circa 1957.

A great deal of water has passed under the bridge, most of it happening within the confines of the facilities in Leyland Truck & Bus which undertook some work in applying the technology to buses. Facilities in Leyland near to the original truck plant became the bedrock for Torotrak.

Executives of major automotive companies made their way to Torotrak Leyland during the last 50 years, all in search of the ‘perfect’ seamless transmission – that disappearing elixir. But for one reason or another, the reality eluded everybody.

Perbury Engineering was for many years the hub of the fountain of ideas. Yet no one liked to admit that a stand-alone engineer knew more about the transmission than anyone else. It was as if he did not exist. Boffins at Leyland believed they knew everything and looked down their noses at ‘clowns’ working in workshops in deepest Oxfordshire.

The little company in Oxfordshire however built a variety of experimental prototypes including those produced by Leyland Truck & Bus, from which people moved across to nearby Torotrak as the company evolved.

                      Careers built on the back of CVT technology

Countless technical papers have been written down the years in Europe, Asia and North America, about CVTs as engineers expounded their ideas about one tiny facet or another of the design. Indeed, careers were forged on the back of the Perbury system.

Now it looks as though, in a bid to cut costs, a huge slimming down process is under way which could see the end of the Perbury-type transmission. Of course, many will dispute that the current design is a Perbury design, as so many man-hours have been invested in pushing out the frontiers of knowledge to expand the power base of understanding of this simple design which relies on traction drive characteristics.

Torotrak plc, which specialises in the use of ground-breaking KERS technology for buses and V-Charge to boost the power of smaller engines for cars, has seen its share price tumble as the car industry has turned its attention to electric cars instead of making traditional engines more efficient.
Interestingly, none of the directors of the company have any history in toroidal transmissions - a passion to drive the technology forward into the market place. None has held board directorship for longer than four years, with the exception of non-executive chairmanNick Barter who joined in 2003. The most recent encumbent is Adam Robson, (April 2015). John McLaren and Rex Vevers joined in June 2013 while Jon Hilton, who is also president of the prestigious Institution of Mechanical Engineers, joined in January 2014. 

In January, Torotrak (which has seen chief executives come and go) announced a strategic refocus of the group including the consolidation of its engineering resources to reduce its ongoing cash operating costs. Indeed, it is possible that some may view Torotrak's acquisition of Flybrid Automotive as a clever device for the Silverstone-based company to reverse into Torotrak plc. Time alone will reveal the outcome.

The company, which also has an office and workshops in Silverstone, has not given details of how many people will be affected but company accounts to March 2016 show it employed 85 staff, 57 of which were engineers at the Leyland site, and it had a total wage bill of £4.7million.

Significantly, perhaps, the Silverstone unit was the technology hub for Flybrid Automotive which became part of Torotrak and led to the emergence of Flybrid executives having a greater say in the running of the company. After all, it was Flybrid Automotive’s KERS technology which now appears to be driving Torotrak forward – if indeed it is making any headway at all.

Last year’s Torotrak plc pre-tax losses almost doubled to £14.3million on a turnover of £1.2 million. Could Torotrak be on the verge of throwing in the CVT towel? It appears not from today’s statement. But who knows the truth?

“The board continues to focus on realising value from Torotrak’s technology portfolio and other assets,” Torotrak said today in a stock market statement.

The group said it expects to close the financial year to the end of March with £5.1 million in cash, in line with expectations but added that the net assets of the company will fall below half of the value of the called-up share capital.  

Under Section 656 of the Companies Act 2006, when this happens the directors are required to call a general meeting of the company to discuss whether steps should be taken to deal with the situation. It will hold this meeting on 31^st May.

“The board does not consider that any steps are required to be taken beyond those already in hand and accordingly, no resolutions will be put to Shareholders at the General Meeting,” it said.

So there we have it. The company rumbles on. The question has to be raised, after this recent activity: just how long can Torotrak survive? The technology does not seem to be attractive enough for an OEM to step in and buy the company to add to its portfolio. But of course this could change.

Only in the minds of those ‘running’ Torotrak is there perhaps the germs of ideas to take the technology strands forward. But these minds are holding their real thoughts close to their chests. Whether the truth of Torotrak's collapse ever emerges remains to be seen.

Torotrak to fit KERS into Caterpillar wheel loader

Torotrak has secured funding to fit KERS technology into a wheel loader programme in collaboration with Caterpillar Inc. of Peoria, Illinois.

CVT sales to reach 12 million - Torotrak

Torotrak Group claims sales of CVTs could reach 12 million by 2020 and has designed a variator with a ratio spread of 12 for front- and rear-wheel drive vehicles to meet future demand. The design has been proven up to 300kW.

Torotrak shuns IVTs; focuses on KERS, V-Charge

Transmission engineer Torotrak plc has put new focus on two of its three main technologies, namely KERS and V-Charge.

Are single-regime CVTs the way forward?

Step-less automatic transmissions continue to fascinate the automotive industry.

Torotrak seeks £13.8m to drive transmissions

Torotrak is asking investors to stump up £13.8 million. But will it be money down the drain?

Torotrak needs more money

Torotrak, in announcing its trading update to 31 March 2015, has stated “additional funding from partners, licensees or new and existing shareholders is likely to be required during the 2015/16 financial year”. 

City of London waits for Torotrak

The next three months are likely to prove interesting at transmission specialist Torotrak plc.

Torotrak: Deering, out; Hughes, in

Jeremy Deering is to step down as chief executive officer of Torotrak plc and Steve Hughes, formerly engineering director at JCB Transmissions, has joined the group as chief operating officer.

Question: Is RVT the new CVT?

OEMs, seemingly, are taking an interest in the reversible variable transmission (RVT) but is it a better transmission than the toroidal continuously variable transmission (CVT)?

One man thinks so, but then he would, being the inventor. And inventors, by their nature, consider their own inventions far superior to those of other people

Dana set to commercialise truck CVTs

Industry insiders are awaiting the next stage in the development of the NuVinci continuously variable planetary (CVP) transmission developed by Fallbrook Technologies Inc. of Cedar Park, Texas.

Developed originally for cycles, the company claims the transmission has applications in passenger cars, light commercial vehicles and certain off-highway duties.

Flybrid’s Hilton now a Torotrak director

Torotrak plc, which has helped pioneer the continuously variable transmission (see also Forbes Perry – Obituary) has confirmed Jon Hilton as commercial director. 

Hilton’s appointment follows completion of the acquisition of Flybrid Automotive Limited, the placing, subscription and the open offer announced on 8 January 2014.

Torotrak, which describes itself as “a leading developer and supplier of emissions reduction and fuel efficiency technology for vehicles”, has confirmed also that Hilton has joined the board of directors.

Forbes Perry - Obituary

We are grateful to Alan Perry, one of Forbes Perry’s sons, for kindly providing this obituary. John Mortimer’s close association with the inventor of the Perbury infinitely variable transmission began when Mortimer was editor of The Engineer in the 1960s.

Flybrid and a very secret client

Next year will be particularly busy for Flybrid Automotive Ltd, the Silverstone-based company that has pioneered flywheel-based kinetic energy recovery systems (KERS) for use in road vehicles.

The first production application of a KERS-based hybrid is likely to appear in the Wrightbus StreetLite product range that appears in 2014.

This activity will mark a breakthrough for Flybrid Automotive Ltd of Silverstone which has developed mechanical flywheel kinetic energy recovery systems (KERS) using either clutched flywheel transmissions (CFT) or continuously variable transmissions (CVT) of the type designed and developed by Torotrak Ltd.

GM and Nissan unite in van deal

General Motors and Nissan Motor Company are to be reunited once more in a van project as Nissan aims to supply its compact NV300 to ‘The General’ as a Chevrolet-branded vehicle.

It will be recalled that some years ago, Nissan’s operations in Barcelona manufactured some versions of GM’s European van, marketed as the Opel and Vauxhall Vivaro. Plant managers from Vauxhall’s plant in Luton, UK visited the plant from time to time to study Nissan’s methods of manufacture.

Now the two manufacturers will join forces for the first time for a vehicle of this type in North America.

Nissan Etherea set for UK

Nissan is investing £250 million in manufacturing facilities at its site in Washington, Sunderland, to build the new Infiniti Etherea hatchback from next year.

The project will create an extra 1,000 jobs in the UK, including some 280 in the North-East. The Etherea is seen by Nissan as competition for the Audi A3 and the BMW 1-Series.

Etherea will be manufactured only in Sunderland and production, when it gathers momentum, is expected to hit at least 60,000 a year. Additional contributions will come from Nissan’s London design centre as well as the Nissan European Technical Centre (NETC) at Cranfield, Bedfordshire, which also handles design work as well as component and vehicle development.

Nissan’s Infiniti ‘luxury’ brand is the equivalent of Toyota’s Lexus.

Torotrak: where to now?

Torotrak has a new CEO. Is the company now about to deliver the goods, or is a long wait still in prospect?

Many are the explanations why chief executive officers leave their companies. Some, like bankers, do so after feeling the ire of public, shareholders or government. Others feel they have reached the end of the road in what they can achieve. Others are tempted by the prospect of new challenges.

Only Dick Elsy knows the real reason for leaving transmission innovator Torotrak plc to join the High Value Manufacturing – Catapult from the first of  this month as chief executive officer, replacing the interim CEO. This particular Catapult first opened in October 2011.

Elsy is replaced as CEO by Jeremy Deering, Torotrak’s finance and commercial director; he has been with Torotrak since 2006.