UK: PHOENIX TO REDUCE ROVER CAR PRICES

Article Abstract:

Phoenix plans to cut showroom prices on Rover cars in order to safeguard the long-term future of the UK-based car manufacturer's Longbridge facility. Reductions of as much as 12% are planned, meaning that the Rover 25 and Rover 75 models would start at around GB[pound] 8,000 and GB[pound] 16,300 respectively. The Phoenix consortium's chief, John Towers, believes that the premium pricing concept must be phased out, saying that BMW, the previous owner of Rover, wrongly tried to transform the business into a UK version of itself. Mr Towers intends to boost sales via permanent price cuts on all models. BMW imposed temporary cuts in April 2000 of 14%, leading to Rover sales rising at a rate not seen in 25 years.

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UK: ROVER SAYS IT CAN DEVELOP NEW MODEL ALONE

Article Abstract:

The UK car company, Rover, announced 29 October 2000 that it could develop a new model on its own if talks to develop a new model in conjunction with another car company collapse. Rover denied speculation that Malaysia's Proton had walked away from negotiations. Rover revealed that it remained in talks with a major car company with regards to the development of a new platform. Rover hopes to sign a deal to start development work by May 2001. The new platform is needed by 2004 to replace its 25 and 45 models.

Foreign operations, Joint ventures, Management, Brief Article

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UK: BMW TO SELL PLANT TO MAYFLOWER

Article Abstract:

Mayflower, the UK car manufacturer, is expected to acquire a pressings plant in Swindon, UK, from German vehicle manufacturer BMW by early 2001, for GB[pound] 80mn-100mn. The acquisition will allow Mayflower to expand production for supplying a number of other car manufacturers such as Vauxhall. However, BMW will not be able to sell the Midlands Powertrain engine and gearbox operations based at Longbridge, UK, to MG Rover as planned. Ford, the US car company that uses engines from the plant for its Land Rover subsidiary, has blocked the deal due to concerns about the long-term viability of MG Rover. Meanwhile, MG Rover has denied rumours that production targets are being downgraded due to lower-than-expected sales, and says it is close to meeting its target of 200,000 sales for the year 2000.

Asset sales & divestitures, New capacity, new plant construction, Motor Vehicle Metal Stamping, Motor vehicle parts and accessories, Gasoline Engine and Engine Parts Manufacturing, Auto Gasoline Engines, Automotive stampings, Motor Vehicle Body Manufacturing, Auto Job Stampings, Passenger Car Bodies, Automobile equipment and supplies industry, Automotive parts industry, Metal industries, Ford Motor Co., BMW AG, Automotive gasoline engines, F, Metal products industry, Metalworking industry, Automobile bodies, Land Rover UK Ltd., Internal combustion engine industry, MG Rover Group Ltd., Mayflower Corp.

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