AA Limited, trading as The AA (formerly The Automobile Association), is a British
motoring association
Automobile associations, also referred to as motoring clubs, motoring associations, motor clubs, are organizations, either for-profit or non-profit, which motorists (drivers and vehicle owners) can join to enjoy benefits provided by the club relat ...
.
Founded in 1905, it provides
vehicle insurance
Vehicle insurance (also known as car insurance, motor insurance, or auto insurance) is insurance for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage or bodily injury ...
,
driving lessons
''Driving Lessons'' is a 2006 British comedy-drama film written and directed by Jeremy Brock. The plot focuses on the relationship between a shy teenaged boy and an ageing eccentric actress.
Plot
Seventeen-year-old Ben Marshall is the sensitive ...
,
breakdown cover, loans, motoring advice, road maps and other services. The association
demutualised
Demutualization is the process by which a customer-owned mutual organization (''mutual'') or co-operative changes legal form to a joint stock company. It is sometimes called stocking or privatization. As part of the demutualization process, memb ...
in 1999, to become a
private limited company
A private limited company is any type of business entity in "private" ownership used in many jurisdictions, in contrast to a publicly listed company, with some differences from country to country. Examples include the '' LLC'' in the United Sta ...
, and from 2014 a
public limited company
A public limited company (legally abbreviated to PLC or plc) is a type of public company under United Kingdom company law, some Commonwealth jurisdictions, and the Republic of Ireland. It is a limited liability company whose shares may be fre ...
(PLC). In 2002 the
AA Motoring Trust
IAM RoadSmart formerly called the Institute of Advanced Motorists (IAM) is a charity based in the United Kingdom and serving nine countries, whose objective is to improve car driving and motorcycle riding standards, and so enhance road safety, b ...
was created to continue its public interest and road safety activities.
In 2021, a consortium led by Tower Brook Capital Partners and Warburg Pincus completed the acquisition of AA Limited (formerly known as AA PLC).
History
Charitable association
The Automobile Association was founded in 1905, to help motorists avoid
police
The police are a constituted body of persons empowered by a state, with the aim to enforce the law, to ensure the safety, health and possessions of citizens, and to prevent crime and civil disorder. Their lawful powers include arrest and th ...
speed trap
Speed limits are enforced on most public roadways by authorities, with the purpose to improve driver compliance with speed limits. Methods used include roadside speed traps set up and operated by the police and automated roadside ' speed camera' ...
s,
in response to the
Motor Car Act 1903
The Motor Car Act 1903 (3 Edw.7, c. 36) was an Act of the United Kingdom Parliament that received royal assent on 14 August 1903, which introduced motor vehicle registration, driver licensing and increased the speed limit.
Context
The Act follo ...
which introduced new penalties for breaking the
speed limit
Speed limits on road traffic, as used in most countries, set the legal maximum speed at which vehicles may travel on a given stretch of road. Speed limits are generally indicated on a traffic sign reflecting the maximum permitted speed - expre ...
, for
reckless driving with fines,
endorsements and the possibility of jail for speeding and other driving offences. The act also required drivers to hold a
driving licence
A driver's license is a legal authorization, or the official document confirming such an authorization, for a specific individual to operate one or more types of motorized vehicles—such as motorcycles, cars, trucks, or buses—on a public ...
(which was obtained without a test on payment of five shillings at a post office) and to display a
registration plate
A vehicle registration plate, also known as a number plate (British English), license plate (American English), or licence plate ( Canadian English), is a metal or plastic plate attached to a motor vehicle or trailer for official identificat ...
on their vehicle.
By 1906, the AA had erected thousands of roadside danger and warning signs, and managed road signage until responsibility was passed to local authorities in the early 1930s.
[ By 1926, the organisation had installed 6,500 direction signs, and 15,000 village signs,][ most of which were removed during the ]Second World War
World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...
. In 1908, the organisation published its first ''AA Members' Special Handbook'' containing a list of nationwide agents and repairers.[
]
In 1910, in a legal test case (''Betts vs. Stevens'') involving an AA patrolman and a potentially speeding motorist, the Chief Justice, Lord Alverston, ruled that where a patrolman signals to a speeding driver to slow down and thereby avoid a speed trap, then they would have committed the offence of 'obstructing an officer in the course of his duty' under the Prevention of Crimes Amendment Act 1885
The Prevention of Crimes Amendment Act 1885 ( 48 & 49 Vict. c. 75) was an Act of the Parliament of the United Kingdom. It became law on 14 August 1885.
It amended the Prevention of Crimes Act 1871, and provided that any person convicted of obstr ...
. The organisation then introduced a coded warning system, used until the 1960s, whereby an AA patrolman would salute the driver of a passing car which showed a visible AA Badge unless there was a speed trap nearby, on the understanding that their officers could not be prosecuted for failing to salute. The AA Handbook stated that "It cannot be too strongly emphasised that when a patrol fails to salute, the member should stop and ask the reason why, as it is certain that the patrol has something of importance to communicate."
In 1910, the organisation introduced ''AA Routes'' and in 1912, began inspecting hotels and restaurants, issuing ''AA Star Classification'' to those deemed to be of sufficient quality and introduced pre-purchase and post-accident repair checks in the 1920s.[ In 1920 members were issued with keys to wooden roadside telephone boxes which could be used to call the organisation for assistance (the boxes had been erected from 1912 as shelters for watchmen or patrolmen). There were almost 1,000 boxes in their heyday, and they remained in use until the 1960s.]
After the war, the AA led protests against petrol rationing
Rationing is the controlled distribution of scarce resources, goods, services, or an artificial restriction of demand. Rationing controls the size of the ration, which is one's allowed portion of the resources being distributed on a particular ...
, which was repealed in 1950.[ 1949 saw the launch of a night-time breakdown and recovery service, initially in ]London
London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a majo ...
only, then extended nationwide. The ''AA Insurance'' brokerage service was started in 1967.[ The organisation campaigned for the compulsory wearing of seat belts, and for the introduction of unleaded petrol. Seat belt legislation became law in the United Kingdom on 1 January 1983 with the ]Transport Act 1981
The Transport Act 1981 was an Act of Parliament in the United Kingdom. Amongst other items it introduced the compulsory wearing of seat belts for front seat passengers for a trial period of three year.
The major part of the act was for re-organ ...
.[ The AA has ]lobbied
In politics, lobbying, persuasion or interest representation is the act of lawfully attempting to influence the actions, policies, or decisions of government officials, most often legislators or members of regulatory agencies. Lobbying, which ...
successive governments over what they describe as 'unfair motoring taxes'.
In February 1972, the AA relocated from its central London offices to Basingstoke
Basingstoke ( ) is the largest town in the county of Hampshire. It is situated in south-central England and lies across a valley at the source of the River Loddon, at the far western edge of The North Downs. It is located north-east of Southa ...
. It began broadcasting ''AA Roadwatch'' traffic reports
Traffic reporting is the near real-time distribution of information about road conditions such as traffic congestion, detours, and traffic collisions. The reports help drivers anticipate and avoid traffic problems. Traffic reports, especially in ...
on commercial radio stations the following year. ''AA Relay'' was also introduced in 1973, a service that will deliver a broken down vehicle, its driver and passengers, luggage and trailer to anywhere in Britain.[
]
Member criticism
In 1998, as a result of enquiries by James Birkin, an AA member it emerged that members had the right to stand for the executive committee. It also emerged during correspondence that there was no record of any member of the AA ever having stood for election. At that time, the committee had the right to veto those standing and had in fact always appointed new members. Birkin stood for the committee in 1998, having first issued a press release reported in the London ''Evening Standard
The ''Evening Standard'', formerly ''The Standard'' (1827–1904), also known as the ''London Evening Standard'', is a local free daily newspaper in London, England, published Monday to Friday in tabloid format.
In October 2009, after be ...
'' highly critical of way the system operated. He was duly rejected by the committee as a candidate they wished to be permitted to stand. Criticism followed at the annual general meeting in May 1998, describing the executive committee of behaving like a "self-perpetuating oligarchy." The meeting repeatedly criticised chairman Sir Brian Shaw
Brian Keith Shaw (born March 22, 1966) is an American professional basketball coach and former player who is an assistant coach for the Los Angeles Clippers of the National Basketball Association (NBA). He could play both guard positions, but wa ...
for having said that members who were unhappy with this arrangement could "vote with their feet".
For profit company
The association demutualised in July 1999 to become a private limited company, which was bought later the same year by Centrica (owners of British Gas and Scottish Gas). Centrica sold the AA in July 2004 to two private equity firms, CVC and Permira
Permira is a global investment firm. Founded in 1985, the firm advises funds with assets under management of €60+ billion. The Permira funds have made approximately 300 private equity investments in four key sectors: Technology, Consumer, Ser ...
, which in July 2007 merged the AA with Saga under Acromas Holdings.
In July 2013, the company launched ''AA Cars'', linking buyers and sellers of used cars. The service is a partnership with Vcars, rebranding its partner's existing online service and providing a check of the car's history. At the time of rebranding, over 110,000 cars were available for purchase via 2,000 registered dealers.
The AA became listed on the London Stock Exchange
London Stock Exchange (LSE) is a stock exchange in the City of London, England, United Kingdom. , the total market value of all companies trading on LSE was £3.9 trillion. Its current premises are situated in Paternoster Square close to St P ...
as AA plc in June 2014, through an initial public offering
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investme ...
in which Acromas sold all its shares. In September 2015, the AA acquired the garage-booking service Motoriety. In that year, the AA had around 3,000 patrol staff.
Bob Mackenzie was Executive Chairman from June 2014, having led the buy out from Acromas, until August 2017 when he was removed for "gross misconduct". He was replaced by Simon Breakwell as Acting Chief Executive, and John Leach as Chairman.
In July 2015, the AA added more than 500 Volkswagen Transporter
The Volkswagen Transporter, based on the Volkswagen Group's T platform, now in its seventh generation, refers to a series of vans produced for over 70 years and marketed worldwide.
The T series is now considered an official Volkswagen Group aut ...
vans to their patrol fleet. More vans were ordered in February 2017.
The organisation had operated in Ireland from 1910. The AA Ireland
AA Ireland Ltd is an automotive services company in Ireland, founded in 1910. It provides rescue services, personal lines insurance, and travel, technical and information services. Its AA Roadwatch service supplies traffic and travel information ...
business was sold to Carlyle Cardinal Ireland Fund and Carlyle Global Financial Services Partners in June 2016. The company stated that it had 3.3 million paying members in the first half of 2017.
The company accepted a takeover offer from a consortium of TowerBrook Capital Partners
TowerBrook Capital Partners, L.P. is an investment management firm headquartered in London and New York City. TowerBrook spun out of Soros Fund Management in 2005 and became known for acquiring majority stakes in companies such as Jimmy Choo. M ...
and Warburg Pincus
Warburg Pincus LLC is a global private equity firm, headquartered in New York, with offices in the United States, Europe, Brazil, China, Southeast Asia and India. Warburg has been a private equity investor since 1966. The firm currently has over ...
in November 2020. The sale was completed in March 2021 with the company delisted from the London Stock Exchange.
Divisions and brands
The AA operates several different divisions and brands, including:
* The AA (breakdown cover, various insurance products, financial services products, motoring-related products)
* Beam, a specialist insurance brand for price comparison websites launched in 2022
* The British School Of Motoring (BSM), a driving school it acquired that was previously owned by rival RAC
* DriveTech, which provides driver training for companies and to individuals referred by the Police
Offices and physical estate
The AA has streamlined its property estate over time, with its main headquarters remaining at Fanum House
Fanum House is the headquarters of the Automobile Association in Basingstoke, in the English county of Hampshire. It is one of several current and former AA buildings named "Fanum House" around the country. The original headquarters in Leice ...
, Basingstoke. The business also maintains a call centre in Cheadle, Stockport and manages it's patrol force of roadside mechanics from an operations centre in Oldbury near Birmingham. Additionally, a number of marketing, finance and digital functions operate from a London office, firstly at 90 Long Acre in Covent Garden, and from 2021 at the Blue Fin Building near the River Thames.
The AA Driving School, which includes the AA and BSM driving school brands, is based in offices in Cardiff.
The AA's publishing arm, branded as RatedTrips.com, is based in separate offices in Basingstoke.
Continuing charities
The AA Foundation for Road Safety Research was created by the AA in 1986. In 2002, the AA Motoring Trust charity was created to continue the AA's public interest and road safety activities; its responsibilities were transferred to the IAM Motoring Trust, under the Institute of Advanced Motorists
IAM RoadSmart formerly called the Institute of Advanced Motorists (IAM) is a charity based in the United Kingdom and serving nine countries, whose objective is to improve car driving and motorcycle riding standards, and so enhance road safety, b ...
, at the end of 2006.
AA ratings and awards
Hotels, guest accommodation, and self catering accommodation
The AA awards ratings according to a system based on quality standards, agreed by the AA and the various tourist authorities in the United Kingdom. Properties are awarded a star rating, from one to five stars. In addition, each hotel receives a "Merit % Score" to enable comparison of hotels with similar star ratings. Hotels that are deemed to stand out may also receive a "Red Star" "AA Inspectors' Choice" award. A similar award for guest accommodation is the "Gold Star" for properties deemed to stand out.
Campsites and caravan parks
The AA award a "Pennant rating" to campsites and caravan parks on a five-point scale. A percentage score is also awarded to enable comparison of parks with the same rating.
Restaurants
AA inspectors award AA rosettes on a zero to five system. About one in ten restaurants have been awarded one or more rosettes. As of 2020, around 2,000 restaurants in the United Kingdom and Ireland held AA rosettes.
See also
*Vehicle recovery
Vehicle recovery is the recovery of any vehicle to another place, generally speaking with a commercial vehicle known as a ''recovery vehicle'', tow truck or spectacle lift.
Recovery can take the form of general recovery, normally of broken down ...
* Campaign for Safe Road Design
*Norfolk House, Basingstoke
Norfolk House, in Basingstoke, Hampshire, England, was the headquarters of The Automobile Association from the mid-1990s until 2003. It was originally intended to replace Fanum House as the AA's HQ, but ultimately the building was not large eno ...
– former headquarters
*Widmerpool Hall
Widmerpool Hall is a Grade II listed English country house in Widmerpool, Nottinghamshire.
Situated on the north side of the village, it was built in 1872 for Major George Coke Robertson to the designs of Henry Clutton. This neo-Gothic manor h ...
– former home of AA patrol training school
References
External links
*
AA Garage Guide
Corporate website
Court case in 1910 regarding possible obstruction of a police officer by an AA patrolman
Saving AA Box 472
Images of AA boxes
at flickr
*
{{Authority control
Companies based in Basingstoke
Companies formerly listed on the London Stock Exchange
Demutualized organizations
Emergency road services
Financial services companies established in 1905
1905 establishments in the United Kingdom
2021 mergers and acquisitions