I am not totally sure
It would eventually happen anyway - but lets take Tomo Pauk's examples - Armstrong-Siddeley and Napier
Armstrong-Siddeley merged with Hawkers in 1935 anyway so it is already merged
ITTL Napier would be taken over by English Electric in 1935 in similar fashion to the Vickers takeover of Supermarine when EE was bought into the Shadow Factory scheme - OTL EE would do this effectively in 1942.
Armstrong-Siddeley’s problem was Siddeley. He was both technically conservative and a bit of an autocrat. But he was also a great businessman. Partially why the Siddeley name remained attached to its parent company right up to Hawker Siddeley.
Siddeley was added to the engine ring based on the potential of the Jaguar. The Jaguar was developed from the RAF.8 which was handed to them by its designers; Major F.M Green former head of Engine Development at the Royal Aircraft Factory and Sam Heron, among other things expert in heat transfer. Green remained the chief engine designer for many years. But Siddeley ignored Heron’s advice enough that Heron left and went to work in the US where he was a major contributor to the development of the Wright Whirlwind from the Lawrence J-1 and developer of sodium cooled poppet valves.
A-S large Cat engines needed a third (central) engine bearing. Every twin radial engine manufacturer ran into the same problem of vibration when they approached the 1000 hp mark. The solution was generally a third bearing, increasing complexity and weight but allowing for better shaft support. A-S never implemented it, instead going to inline radials in their Dog series (seriously, somebody in marketing screwed up on that one). If you add this in they should be capable of a large displacement twin row radial of competitive size.
Napier was, IMO, effectively a dead letter, design wise, after the loss of Arthur Rowledge to RR in 1921. Until the 1930’s they had access to founder Montague Napier as a consultant (he had moved to France in 1915 for his health) and subsisted on developments of Rowledge’s Lion. Then they used the services of Frank Halford as a consulting designer who created the air cooled inlines that eventually led to the Sabre. These were not exactly rousing successes, though the Sabre itself has fans. IMO Napier should have been replaced as an engine ring designer in the late 20’s or early 30’s. Their management was poor, their design office was small and their production facilities were archaic. They had some talented draftsmen that could translate Halfords very non production focused work to the Production floor but those might be better served in other companies. They could perhaps have been saved by acquisition by a company with more drive, like EE or RR, but I think you are probably better off replacing them. Fairey was getting started then, and its products had some possibly very useful features. It might be a viable replacement.
Here some of the lesser performers are merged to create a larger organisation better able to absorb the requirements and needs of the UK Aircraft industry
One thing we tend to forget about the aero industry of the time is that it was not a massive growth industry until rearmament. Established players like Bristol did very well, but the market did not have room for a lot of new players. Most of the ones that we think of (Wolseley, EE, Alvis) only became interested in the rearmament boom of the late 30’s.
At the same time, the established aero engine manufacturers, or at least some of them did extremely well. We tend to dismiss the numbers produced because we look only at production. In the protectionist international scene of the interwar period the only way to expand beyond the domestic market was to license produce. The British manufacturers tended to dominate this market. Bristol engines were so influential in the US, for instance, that Luke Hobbs (later developer of the Stromberg Carburetor and the J57 jet engine) when asked why he had not yet developed a two-row radial supposedly answered “Because Fedden hasn’t”.
Combining companies under government mandate will kill a lot of the dynamism that existed in the industry while not addressing the reason production numbers were small, a small domestic market. If you want to improve the production ability of the aero manufacturers prior to the war, I suggest something like
@NOMISYRRUC ‘s work on this
thread. Improving the Commercial air market. I expect a government merged aero engine manufacturer would be more akin to Leyland than ICI.
The smaller players (outside the approved list) were as far as I know Wolesley Aero Engines (ie Nuffield), Fairey's engine wing, and Alvis.
Wolseley Aero Engines was a personal project of Lord Nuffield. Considering how much crap he gets on tank threads, I am always surprised how much interest there is in his involvement in aero engines. Wolseley was not accepted by the government because Nuffield was financing the company personally, rather than through his auto group, and refused the Air Ministry request for a financial audit. The audit was pretty standard practice for taking on a new contractor but Nuffield was not keen on the idea and dropped the proposal.
Alvis only got back into the aero engine game with the rearmament boom in the late 30’s. It had no such assets prior to 1935 and no incentive to be involved.
Fairey I think had potential, though they are unlikely to be a world beater. They did have some good ideas and any production facility would have been brand new. The problem was that Richard Fairey consistently picked fights with the Air Ministry. In some cases he was perhaps justified but unnecessarily provocative. In others he was just provocative. He was also a bit of a skinflint, which could possibly cause problems down the line.
There's an argument to merge De Haviland and Napier. While De Haviland (like and to a greater extent than Armstrong) was successful in second line engines they subcontracted a lot of design work to Halford's consulting company who also did the significant portions of design work for Napier.
Halford preferred to work with De Haviland. And to be honest his ideas are probably better suited to their small engine designs than they are to Napiers anyway.
The other engine company that maybe should have been merged would be Bristol engines, after it is separated from aircraft....... (the same with De Haviland) I think having engine and aircraft makes together leads to them not looking at all the best options and being willing to use the competitions engines if they are better for example. This would be more important for WWII if we want to go to more standard designs like bombers that can take multiple types of engines "power eggs" style depending on supplies availability or what develops better?
Bristol was almost certainly the most successful engine company of the interwar. Even RR didn’t do as well. Generally it was not a problem that they used their own engines since everyone else was using them too.
If you want to separate an engine and airframe company I would suggest Armstrong Siddeley and Armstrong Witworth. The AW Ensign, for example, was hamstrung by its AS Tiger engines. Trouble is they are both already part of the Hawker group.