One of the world's most traditional car marques is making the most of the latest technology to improve efficiency and move into new international markets.

The Malvern-based Morgan Motor Company is making the most of a series of Knowledge Transfer Partnerships (KTP) with Birmingham City University's Technology Innovation Centre to add over £3 million of new sales and boosting the development of future models.

Its pioneering work has also seen it win through to the final three in the Achievement through Innovation title at this year's Lord Stafford Awards.

Steve Morris, operations director at Morgan, said: "The industry is becoming more competitive and, in order to retain traditional values, we need to embrace innovation and technology.

"This is where we decided to tap into the KTP programme, starting with the development of the Aero 8 for the North American market."

The company, which employs just under 200 people, currently manufacturers 175 Aero 8 and 475 Classic cars every year.

Using computer aided design facilities, it was able to refine seats, air bags and the drive train on the vehicle so that it conformed with legislative requirements.

"For a small family run company the cost of crash testing could run into the millions, but by using external expertise and guidance we were able to complete the modifications quickly and within budget," said Mr Morris.

"We now have structured systems in place that keep us abreast of new legislation and helps to shape more strategic decisions in regards to product line-up."

The success enjoyed by Morgan on the first KTP has led to £500,000 in cost savings through the implementation of new manufacturing techniques and a renewed focus on model introductions.

The latter, which involved a design graduate from Birmingham City University, resulted in the design and production of a new four-seat car that made its debut at the 2006 Geneva Motorshow.

With the in-house capability to visualise and develop designs that comply with past and future legislation, the company also restyled the Aero 8 and is already making significant progress towards a hydrogen fuel-cell LIFECar.

This years marks the tenth anniversary of the Lord Stafford Awards, which showcase West Midlands companies who have worked with universities and innovation programmes to develop new products and processes.

The event will be held at the NEC on November 15.