James Graydon retires as managing director of Volkswagen Motors in the UK and Alan Dix is appointed as his successor. Alan Dix's brief is to modernise Volkswagen Motors for Thomas Tilling Limited. Dix was not happy with the distribution set-up in Britain and was determined to wipe out the two-tier system which had existed since the early 1950's permitting distributors to dictate supply to the smaller dealers and limit the amount of control which Volkswagen Motors had over the network. Dix phases out the 27 middlemen distributors and creates instead a single-tier system, with Volkswagen Motors supplying cars directly to all dealers. This system gives Volkswagen Motors proper control over standards and results in the dealers making greater profits. Volkswagen Motors Limited is re-named Volkswagen GB Limited.