The group was formed to produce a more logical management structure within the BL group – prior to the creation of LRG the Land Rover business was part of the Jaguar Rover Triumph or specialist division, makers of luxury cars, whilst the Sherpa van was part of the Leyland Truck & Bus division and the only light commercial product in a range otherwise made up of full-size commercial vehicles.

The Range Rover was gradually pushed up-market into the luxury car sector with a facelift and with more powerful engines, an automatic gearbox, 5 doors and new interior features such as leather seats and air conditioning.

The Sherpa van was given an immediate facelift in 1981, creating the 'K2' series, which was only available for a few years before the Freight Rover business was expanded to a two-model range.

The 300-series also brought with it a new look for the Freight Rover products with square headlights and a new grille which was also applied to the 200 Series (although the smaller model retained its round lights).

In 1986 Leyland Bus became a private company, the subject of a management buyout, later being acquired by Volvo.