By the late 1930s, sales of Austin's big seller, the Austin 7, were declining and the 1938 addition to the range of the 900 cc "Big 7" did little to fill the demand, as despite its larger engine its suspension and handling were still rooted in its early 1920s origins. A restyled and re-engineered range of cars had started to appear in 1937 with the Cambridge 10 with its much more streamlined look, and following the arrival of Leonard Lord development of a proper 8 hp car was accelerated. First the "new" engine was advertised to be 27HP, but later it was corrected to the same rate as the Big 7, which was 24HP.