History
1970s and 1980s - BTG
Torotrak was established on 1st January 1988 as a subsidiary of the British Technology Group (BTG), to develop and commercialise full-toroidal traction drive technology applications.
BTG’s association with toroidal Continuously Variable Transmission (CVT) systems began in 1960, when the organisation was introduced to the traction drive concept then being developed by Perbury Engineering under the direction of Mr Forbes Perry. Even then, the concept was not new as a patent had been filed in 1899 for a toroidal CVT, and complete transmissions were tested by Austin in the 1930s.
During the 1970s, toroidal CVT technology was licensed by BTG to Lucas Aerospace and used successfully in the Harrier fighter jet. At the same time, and into the early 1980s, BTG worked in partnership with Perbury Engineering to support the development of a toroidal transmission for Leyland Trucks. A group was formed within Leyland Trucks to investigate further potential applications for the technology, including cars, tractors, four-wheel-drive vehicles and even an armoured personnel carrier. When the Leyland project came to a close in the late 1980s, the potential for toroidal technology was considered to be significant enough for BTG to establish Torotrak as a specialist company within the overall group structure.
At the outset, Torotrak had seven full-time employees drawn from the original development team at Leyland Trucks. Based in the Leyland Technology Centre, the team continued to examine and develop various potential applications for IVT and CVT technology, such as front-wheel drive car transmissions and a transmission system for a Formula One car. Over time, Torotrak recruited more staff and moved to larger premises where the company produced development transmissions for Toyota, BMW and tractor manufacturer SAME, while also conducting studies on behalf of other vehicle manufacturers including Honda, Mercedes-Benz, Peugeot and Ford, developing further know-how and expertise in applying its technology across a range of applications.
1998 - flotation
By the early 1990s, Torotrak had engineered two series of prototype transmissions for the automotive market, but further development of the company’s technology was severely limited by funding and resource constraints. To address this constraint, and in recognition of the technology’s potential, Torotrak was demerged from BTG in 1998 and floated on the London Stock Exchange as an independent plc, raising £50m in capital with which to complete technology development and achieve market launch.
Over the following years, Torotrak expanded its manpower to 130 employees, recruiting especially in core areas such as research, design and powertrain development. The funds raised also allowed the company to move into a new purpose-built technical centre at Aston Way in Leyland, which includes an array of test facilities such as plint traction rigs, rolling road dynamometers and variator test rigs. Advanced development work and vehicle fleet trials also took place with the goal of making Torotrak’s IVT the preferred automatic transmission technology for premium car and SUV (sports utility vehicle) applications across the automotive industry by 2010. However, by 2002 it had become clear that this hugely ambitious strategy was unlikely to succeed.
2003 – change of management and strategy
In January 2003 Dick Elsy became Chief Executive of Torotrak. Previously responsible for product development at Jaguar Cars Limited, he brought with him considerable understanding of the intricate links that exist at senior levels between car manufacturers and their tier-1 suppliers, as well substantial experience in bringing new technologies to market.
Dick’s arrival led to a significant change in the company’s direction. Whereas previously, the company’s strategy had been focused primarily on the premium automotive market, the new senior management team recognised that Torotrak’s technology was inherently scaleable and that it could be applied to a wide range of products and markets. The decision to expand into markets and applications away from premium cars and SUVs resulted in a broader level of technology development, with the engineering of lower cost solutions driving a greater understanding of the company’s technology, control mechanisms and materials.
The company’s diversification strategy started to yield results in 2005. In April of that year, Torotrak announced a new licence agreement with Carraro SpA of Italy relating to the use of the company’s technology in Carraro’s agricultural tractor transmissions. In November that same year Torotrak formed a joint venture company, Infinitrak LLC, with partner MTD Holding Inc, a leading manufacturer of outdoor power equipment. Infinitrak brought together Torotrak’s engineering expertise in full-toroidal traction drive technology with MTD’s world-class manufacturing capabilities to develop, make and sell low-cost, high performance toroidal transmissions for the outdoor power equipment (OPE) market.
2007 – placing and open offer
In August 2007 Torotrak raised £6.7m of new equity funds as the result of a successful Placing and Open Offer; the Offer was nearly twice oversubscribed. The funds secured through this process strengthened Torotrak’s balance sheet, enhancing the company position in its commercial negotiations with its world-class customers and also enabling additional technology development in support of further business growth.