Charles Morgan has dismissed reports he plans set up a rival company to Morgan Motor Company, following his ousting from a leading role there in October.

Reports suggested Morgan had said he was planning to launch a new company that would "build on the innovation and heritage of my grandfather" and that "the old Morgan brand has become toxic".

However, when contacted by Autocar he dismissed the suggestions, saying: "I still own a significant part of Morgan Motor Company, and I still want to see it being extremely successful. Even if I were minded to set up a rival - and I'm not - there's certainly not room for two Morgan style companies. The market just isn't that big."

Morgan says the story came about as a result of a misunderstanding following a hurried phone call. "I said I intended to stay involved in the car industry, but I was referring to roles I continue to have within it, such as with the SMMT and the Automotive Technology Council," said Morgan.