Rover Owners ClubRover 200, 400, 600, 800 + 25, 45, 75  

NEWS

. News 2000 .

NEWS

October 2000
On a gloriously sunny day, which was very lucky since gale force winds had been blowing the night before, Ian and Steve (representing The Rover Owners' Club) set off for Longbridge. The date was 4th October 2000 and the day that a certain amount of history was to be made. Rover, who from now on would be known as MG Rover Group, were finishing production of the Mini (now owned by BMW) and starting production of the Rover 75 at their Longbridge facility.

The mini started life in 1959, a vision of Sir Alec Isigonis and various 'rough' sketches. This was a car for the masses, only 10 ft long (3 metres approx) and yet a full 4 seater. The car has lasted in virtually its original guise since that day, with only minor alterations along the way.

Mini 6, 5, 4, 3 & 2 drove off to the sound of Matt Monros' "On days like these"-->The very last ever Mini from Longbridge plus the very first Rover 75 entered to the sound of Michael Caine and Co, from The Italian Job and "Get a bloomin' move on. (Self Preservation Society)". The fact that the Mini had featured so strongly in movie "The Italian Job" didn't go un-noticed. The Mini came into view being driven by 60's (70's & 80's) pop icon Lulu, who had featured in earlier years adverts for the Mini car (October 1976 for instance). This last Mini was in actual fact a Mini Cooper Sport, and like Lulu still looked good, even today against younger models. Unfortunately, the Mini is no longer British owned, and is now in the domain of BMW.

MG Rover, however, are in buoyant mood with the range that they have been left with. They have high hopes and major plans for the Rover 25, 45 and 75. Not forgetting MG, this will certainly develop into the 'sportier' models and will probably feature on racetracks. The Rover range will continue to be the quintessential English vehicle, purveying all that has been good about Rover, with wood, leather and all the refinements that we have become accustomed to. The range is due to expand by summer 2001 with the introduction of the innovative Estate version with the split rear hatch.

Rumours have abounded recently, about the worth of Rover, whether they have enough expertise and whether they can find an acceptable 'bed' partner to develop future models. They certainly have the history behind them. History which, we hope, they will learn and benefit from.

"The MG brand will be made much bigger." Said Gordon Poynter, Head of Corporate Communications, "The 25, 45 and 75 will be developed further. They have a terrific platform, which is good for modifying until 2005. However we hope for a new platform, from a possible tie-up, by 2004".

The transfer of the £400m Rover 75 high technology facility from BMW Oxford to Longbridge has been completed on time and to exacting quality standards, a MG Rover publication stated. The extent of this civil engineering project is probably unique in the history of the British car industry. The rate of production will increase progressively and reach full operating volume by November.
The Rover 75 was the culmination of a £400m product development and a 'clean sheet of paper' design. Since it's launch from June 1999 it has received multiple awards and accolades from around the world, including What Car? Magazines Car of the Year. Germany's Golden Steering Wheel and voted in Italy as 'Most beautiful car in the world' saloon.

As 'The Rover Owners' Club' we hope that MG Rover will not forget that there are still Rover owners' who want sporty cars, and not necessarily MG badged. There is room for some 'overlapping' such as a Rover 75 with a 2.5 KV6 engine, 17" alloys and de-chromed, buy still retaining the wood interior and called the Rover 75 Vitesse. There could also be a MG version with colour coding and no wood interior for the sportier person called the MG75R for instance. There is plenty of scope and fingers crossed that this time they get it right.

MG Rover finished the day safe in the knowledge that the 'old' Mini was voted European Car of the Century earlier this year. The Mini. 1959 - 2000.

Goodbye Rover?
An article featured in 'The Engineer' on 17th September 1999 stated that:
BMW has decided to include Rover within its organisation, removing Rovers autonomy.
R75 GrillBMW's chairman Joachim Millberg said, "BMW is leading Rover now because they were not strong enough as an independent organisation." The move followed increasing frustration in Germany over the plight of Rover. This means that the Rover marque will remain, but will become one of many owned by the German car giant, including Rolls Royce, Land Rover & M.G.
The move will see all decisions being made in Munich with little or no UK corporate structure to get in the way of BMW's decisions. The company's formal name will stay as Rover in the UK. Rover dealerships are unlikely to be rebranded. However, the decision does mean that in future there will only be new cars from BMW and they will be badged as Rover, Land Rover or maybe even M.G.

30th September 2000
The Rover Owners' Club have been contacted by Rover, we have been given a contact name, within the marketing department, for us to commence dialogue. We will let you know what happens. Also, Ian & Steve have been invited, as representatives of The Rover Owners' Club, to attend the production of the last Rover Mini & the first Rover 75 off the Longbridge production facilities, on Wednesday 4th October 2000. An article will appear in a future issue of RoverTorque, the Club magazine.

22nd September 2000
The Rover Owners' Club contacted Rover UK direct via e-mail, we actually sent 9 (nine) e-mails in total to various people within their Communications/Public Affairs departments, offering and requesting presence at Trax2000. This is a major car event, attended by all the people who are interested in GTi type models and modifing their cars. We suggested that Rover attend, either as Rover or anonymous, we never received a reply. Not even a negative, (NO)! We would have hoped, as a club, that they would have learned from past experience, if you keep yourself aloof, people forget who you are and do not buy from you. BMW tried to keep the Rover brand too upmarket and forgot the people who buy the cars. Lets hope that the current Rover owners' do not make the same mistake. It is the people in the street that make a marque successful, not just racing and obscure advertising!
The Rover Owners' Club pledge their support to John Towers (Phoenix) and Rover and wish them every success.
Here are some of our proposals on how to make Rover great once more!
1) Don't change the name of the company. This will lead to utter confusion amongst the public and cost millions to re-sign the dealerships.
2) Make your marketing much more aggressive and dynamic. Match competitors deals on entry level models. A 25 powered by an engine of less than 1100cc would be a good idea to take advantage of the lower road tax.
3) Market the sporty version of the 25 as an MG-R. Pitch it at a price and specification to compete with cars like the Citroen Saxo VTR. Get someone like Lotus to tune the suspension.
4) Make all models available from all dealers. At present only certain dealers are able to sell the MGF.
5) Ensure all models ordered new are available in a reasonable space of time. Despite all the overcapacity we hear about we are told some customers are waiting more than eight weeks for their car.
6) Establish a link with our club and take every opportunity to exhibit your cars at a wide range of different car shows, including those which attract a younger audience.
7) Remember, most people who criticise a Rover have never owned or driven one.

04/06/2000
HELP FOR THE NEXT GENERATION OF CARS
Rover are looking for a 'partner' in the motor industry.
One which will allow them to use their chassis/floorpan for the next generation of Rover cars. In the words of John Towers, "We aren't financially large enough to design cars from the floor up, the cost and time involved would be too great". Unfortunately, it appears at this time that no manufacturer is openly willing to acknowledge a tie-up with the company. Meanwhile, an extended version of the Rover 75, a limousine model, is to go ahead. The project was originally started in 1997 and shelved when BMW sold Rover. The project in now back on the drawing board with a local West Midland company preparing to do the modifications to turn the 75 into a six door limousine. The estate version 75 is also planned for production, as is a Coupe model utilising the V6 2.5Ltr engine, 17" alloys, modified grill and of course 2 doors. The Coupe is expected some time next year or in 2002.

12th May 2000
All Electric Rover says Sales Success Proves Car Buyers Don't Discount Quality.
All Electric Garages says April's record sales performance for the Rover marque reflects the real confidence car buyers have in the quality of it's products and strength of ownership packages.
During the month nearly 20,000 new Rover cars were sold, meaning one in nine new cars registered were Rover. With almost 10,000 models sold, the Rover 25 was the UK's best selling car, whilst the Rover 75 dominated its sector to become the fifth overall best selling car.

Sales manager, Neil Coleman, said "It just goes to prove that we have got the quality of our products and sales packages exactly right for the current UK car market".
"The Rover 75 is without doubt the best car Rover has ever made and major engineering developments from it have been passed on to the new Rover 25 and 45. The backing of these great products with Rovers outstanding customer reassurance programme is enabling people to buy with confidence, despite the ownership uncertainty of Rover Cars".

May will see Rover build on the success of the April sales campaign, which has seen Rover achieve its best market position since 1996. A similar range of consumer offers* will be available across specific Rover 75, 45 & 25 models.

*May Sales Campaign Offers.
Rover 25/45: £750-£1,250 cashback/deposit contribution dependant on specific model chosen. (Excludes 25 GTi & Steptronic versions). Guaranteed 3 year/60,000 mile warranty with 3 years FREE servicing and 12 months 0% finance.
Rover 75: £1,500 cashback/deposit contribution dependant on specific model chosen. (Excludes top of the range connoisseur & connoisseur SE). Guaranteed 3 year/60,000 mile warranty with 3 year FREE servicing and 24 months 0% finance.^
^Subject to normal terms and conditions.

09/05/2000
DELIGHT AS ROVER BECOMES BRITISH
Joy amongst the Rover workers and unions, today, as BMW have sold Rover to the Phoenix Consortium.
Help for the bid came yesterday in the shape of a substantial financial package from an American bank. Phoenix had to pay BMW £10 to own Rover. The rest of the money will now go to securing the future. It is estimated that around 1000 jobs will be lost, hopefully by voluntary redundancy. Manufacture of the Rover 75 will be moved from Cowley to the Longbridge site. Phoenix are aiming to have Rover 'in profit' within two years. The hope now is that Rover can get back to producing cars within budget and recover from the recent damaging uncertainty whilst owned by BMW.

02/05/2000
The Right Direction...
The Phoenix Consortium has today started talking with BMW about a possible buy-out of Rover.
The discussions were "going in the right direction" with both parties sorting out the differences to be discussed for the rest of this week, including who would cover the cost of any redundancy pay-outs. Meanwhile, Alchemy have announced that, as of today, they are back with their bid.

29/04/2000
TALKS - TUESDAY
BMW, owners of Rover Cars, are to start holding talks with the Phoenix Consortium on Tuesday 02/05/2000. This will give the consortium just 4 weeks to finalise a deal.

28/04/2000
ALCHEMY GONE ~ ARISE PHOENIX
Alchemy Partners have ruled themselves "out of the race" for the purchase of Rover, citing contractual differences as the cause for their stoppage at talking with BMW.
Alchemy then wished Rover and it's employees well for the future. This now "leaves the gate wide open" for the Towers (Phoenix) bid.

Phoenix are still trying to secure adequate funding, if successful they claim that they will retain more of the Rover staff. BMW are still looking for a buyer and state that Rover factories will close within a month if no-one is forth coming. Rover workers were seen outside Longbridge chanting "We aren't going away". But experts warned them not to celebrate too soon. Rover is reportedly still suffering high losses each day, despite recent increases in car sales, and a buy-out capable of high volume production is highly unlikely, some experts were stating.

27/04/2000
Gib Towers Zeit (Give Towers Time)
"Give Towers Time". That was the call from unions & workers at Longbridge after Rovers owners, BMW, appeared to pour scorn on the Towers bid saying it didn't appear to have adequate financial backing. BMW are still pressing ahead with the sale of Rover to Alchemy Partners. The contract is reported to be ready to be signed tomorrow (Friday)

24/04/2000
12:30pm RIVAL ROVER BID CLOSE TO COLLAPSE
The Phoenix Consortium reportedly believes that its rescue attempt of Rover is on the brink of collapse.

Media reports indicate there are increasing fears that a deal with Alchemy Partners could be completed by Friday (28/04/2000). Unions are urging BMW to give Phoenix more time.
Representatives are expected to travel to Germany on Wednesday (26/04/2000) to plead for an extension to the Friday deadline.

20/04/2000
LOSSES, & MORE TIME NEEDED!
The West Midlands faces losses of up to 19,000 jobs following the sale of Rover by it's owners' BMW.
A draft report prepared by the Governments Emergency Taskforce warns that the West Midlands faces a "major shock".

Rover is the key player in the local economy, supporting 50,000 jobs with suppliers, shops & pubs at risk.

Meanwhile: There are rumours that the Towers Consortium (The Phoenix Bid) has asked BMW to extend the period to consider their offer. They have asked for an extension to the end of May 2000 to give them time to complete their bid.
Alchemy Partners have said that they should own Rover, and the deal signed, by the end of this week (27/04/2000).

14/04/2000
ALTERNATIVE OFFER FOR ROVER
BMW has received an alternative offer for it's planned sell-off of Rover. Former Rover boss John Towers is leading a consortium (The Phoenix Bid). BMW said it would examine the bid, but would give no other information at this time. The news follows disquiet over the expertise of current prospective buyers Alchemy Partners.

Trade Secretary Stephen Byers announced a £2,000,000 package of aid to help companies which currently supply goods to Rover. The money will go towards re-training into other areas of work.

13/04/200
SACK FOR 5,000 ROVER WORKERS
by Ken Gibson of The Sun (Bosses to axe them in one go.)
More than 5,00 workers will be axed in one fell swoop when the car firm's expected new owners take over. Alchemy Partners told of plans for a single huge redundancy scheme. Although the venture capitalists would not reveal how many workers will go, it is believed that only 3,000 of the current 8,000+ workers will retain their jobs.

Alchemy said "We do not think it is fair to the workers to have lots of smaller redundancies because that only adds to the uncertainty." Alchemy also added that they expect to tie up a deal with BMW by the end of April. They would then have to give the workforce 90 days notice of redundancies and also to the unions. Alchemy would also hold talks over payoffs - expected to be funded by BMW.
The bulk of the workforce would then go in late July when Longbridge normally closes for the annual summer holidays.

02/04/2000
ROVER ON ITS OWN BLAIR ~ NO BAIL-OUT FOR LONGBRIDGE
Tony Blair has hinted there will be no Government intervention to help save thousands of jobs at risk at Rover. The Prime Minister made his comments in the Sunday Business newspaper the day after an 80,000-strong march to protest at BMW's decision to off-load the Longbridge plant was declared a 'phenomenal success'.

The Prime Minister said that New Labour supported business. "But if governments in the past, of both major political parties, have been drawn towards `rescuing' a company in difficulties, we see our role now as helping to equip people and business for the new economy; as encouraging innovation and entrepreneurship; as stimulating competition; as improving education and training; and as broadening access to new technology.

"The implication - that Rover will be left to fend for itself - will disappoint those who turned out onto the streets of Birmingham. On Saturday Roger Lyons, general secretary of the MSF union, had said of the march: "It is not a funeral for Rover, it is a demand for action."Tony Woodley, of the Transport and General Workers union, told the crowd: "The number of people here shows the emotion and the anger that people feel in the West Midlands and the country as a whole. We are talking about total betrayal and the break-up and destruction of one of the greatest car companies in the world. It is nothing less than industrial sabotage.

"Traffic came to a halt as workers - joined by their families, union officials and church leaders - gathered for the mass protest over BMW's decision to sell off Rover's Longbridge plant on Saturday.

Meanwhile the Opposition was not letting off the pressure on the Government over BMW's sale of Rover, claiming it knew earlier than it is admitting that the deal was imminent. Leader William Hague, speaking after The Sunday Times quoted BMW boss Joachim Milberg as saying that by late December he had contacted Trade and Industry Secretary Stephen Byers, said: "The evidence is mounting that BMW did warn Stephen Byers. If it does turn out he has been misleading Parliament and the country then certainly we would need a new Secretary of State for Trade and Industry".

02/04/2000
Peoples March
A huge"peoples march" held in support of Rover car workers as part of the campaign against the plan by BMW to sell off its loss making British Subsidiary, saw over 80,000 people attend Birmingham on April 1,as union leaders spoke out in an attempt to keep up the pressure on BMW not to break up Rover.

Tony Woodley, chief negotiator for the Transport and General Workers Union said that the Birmingham Rally was the biggest event of its kind since the miners strike in the mid-80's. He said "The response we had since deciding to hold the rally has been unbelievable. It is no exaggeration to say that this campaign is now a battle for Britain and British Manufacturing, and it has struck a chord with the British People.

26/03/2000
14:00~ THE FACTS? ~
Steve Wright
The dust has now all but settled and a lot of the 'rumours' are either being confirmed or denied.
As 'The Rover Owners' Club' we feel saddened & angry that a long established British marque has 'apparently' been left to die. We are not saying that nothing will survive. But the remnants will be so small as to pose little or no threat to 'main line' vehicle manufacturers such as BMW, Ford, Vauxhall, VW & Audi etc. As was stated earlier this week, the French make cars & buy French cars, the Italians make cars & buy Italian cars. The British make cars & buy everyone elses! Patriotism starts at home.


So. The latest 'facts' (allegedly) are:BMW WILL hold onto the Riley, Triumph and Wolseley names. BMW are not 100% certain about absolute ownership of the 'Triumph' name? The outcome? In future you may well buy a sports car with the Riley name, but where will it be made?

ALCHEMY own the Longbridge factory, plus the ROVER & MG Brands. BMW have sold Landrover to Ford, but still retain the Hams Hall engine plant and the Cowley factory (which builds the Rover 75). BMW retains the new MINI brand but allow Alchemy to build and sell the current Mini.

Alchemy believes it can turn Rover into a profitable niche producer under the MG brand. Alchemy, who are venture capitalists, have been accused by some of being asset strippers, others believe that they will sell the MG Car Company on to a larger manufacturer. In the interim, they have to convince would be purchasers & drivers that their money is safe and that 'back-up' (warranty and maintenance) are fully covered, even if the company goes through another name change, when it is eventually sold on.

This is one of the current problems facing people. The Rover Owners' Club has, understandably, had concerned Rover car owners asking who will service and repair their 'beloved' vehicle and who will handle any warranty claims for new vehicles, if the Rover name disappears. We, right or wrongly, assume that all dealership queries will be dealt with by Alchemy, since they now own the Rover brand.

Alchemy will, for the immediate future, sell 25, 45 ,75 MGF & current Mini. The 25 & 45 will be built at Longbridge and the 75 built & supplied by BMW at Cowley. The current Mini will cease being produced after this year as it will not meet new EU emissions standards. The planed 75 estate will still be built, the 75 sport (with 18" alloys) is still uncertain.
It is thought by motoring experts that half of the Longbridge staff will lose their jobs, with subsequent 'knock on' effect through the supply train.

Alchemy will look at developing medium volume vehicles, designed and built along the lines of Lotus, using Composite and alloy technologies. Which, they claim, allows for new models to be launched in quicker time and with reduced development costs. (Could some sort of information tie-up with Lotus be in the pipe line?).

Finally, it has to be stated that Alchemy have not yet decided for definite whether the current Rover models will be re-badged as MG.

Once again, we have carried out a straw poll of both members & non-members, Rover & Mini. All (We re-state ALL) think it would be wrong to remove the ROVER name. Everyone thinks that with the right marketing, Rover can be great once again. (Remember on the day of the Launch of the Rover 75 it was also announced that there may be redundancies at Rover, which overshadowed what should have been a successful launch).

If Alchemy are really serious about turning Rover around we have a few suggestions.
1) Don't change the name of the company. This will lead to utter confusion amongst the public and cost millions to re-sign the dealerships.
2) Make your marketing much more aggressive and dynamic. Match competitors deals on entry level models. A 25 powered by an engine of less than 1100cc would be a good idea to take advantage of the lower road tax.
3) Market the sporty version of the 25 as an MG-R. Pitch it at a price and specification to compete with cars like the Citroen Saxo VTR. Get someone like Lotus to tune the suspension.
4) Make all models available from all dealers. At present only certain dealers are able to sell the MGF.
5) Ensure all models ordered new are available in a reasonable space of time. Despite all the overcapacity we hear about we are told some customers are waiting more than eight weeks for their car.
6) Establish a link with our club and take every opportunity to exhibit your cars at a wide range of different car shows, including those which attract a younger audience.
7) Remember, most people who criticise a Rover have never owned or driven one.

25/03/2000
18:00UPDATE (From Express & Star Newspaper Thursday edition)
German car giant BMW has agreed to try & "minimise job losses" caused by its sell off of Rover, the company told Trade & Industry Secretary Stephen Byers. The minister said he had a "very positive" meeting with BMW bosses at the firm's head office in Munich.

BMW has agreed to try to minimise the number of jobs expected to be lost and will co-operate with the task force set up to help re-generate the West Midlands.
.......Further talks will be held but Mr Byers obtained no figures from BMW about the likely job losses, which union officials fear could reach 10,000.
Meanwhile. Entrepreneur John Hemming revealed that he had signed up 5 partners for his proposed rival bid for Rover, and hopes to have a 6th by the start of next week.

23/03/2000
19:30 Steven Byers
(Local News (Midlands). On 2nd April 2000, Hednesford Raceway are organising a 'BMW banger day' for the beleagured Rover workers. Rover employees who carry a union card & passport? will get in for free. Take a sledgehammer to a BMW for £1.00 per go. All proceeeds to go to a Rover fund.
(National News). Stephen Byers, Trade & Industry Secretary, who branded BMW as liars, has today been in talks with the same company, in an attempt to 'limit the damage' which follows their sell off of Rover.
Alchemy Partners have told everyone to 'mind their own business' "No one can create jobs!"
Mr. Brandon Gough has been put forward as the new Chairman of MG Car Co.
What happened to Patriotism? Tonight on 'BBC's Top Gear' Mr Quentin 'I've driven everything, so I'm the expert & know what I'm on about' Willson had nothing but bad words for the 45 stating it was old & staid, based on the 400 and wasn't worth considering. Talk about kicking a dog when he's down.....

22/03/00
17:10 ROVER RALLY
Allegedly, Unions are in talks with other car manufacturers over purchase plans. Rover vehicles appear to be selling well at present. Allegedly, some people have cancelled orders for BMW cars.

Rally on Saturday 1st April 2000 @ Cannon Hill Park, Birmingham 10:30am in support of the ROVER brand and British component industry. (Bring your Rover!). The Rover Owners' Club will be represented together with The British Mini Owners Club, plus other clubs and all other interested parties (Union officials, workers, component manufacturers etc). See you there.
It has been learned today that the Rover Heritage site at Gaydon is still owned by BMW and will be called "BMW Mobile Tradition" and that they will still be producing the Heritage Mini Body shells. This may also mean that BMW still own the classic brand names of Triumph, Riley etc. Does this mean the parts industry for these marques is in for a major shake up? We shall have to wait and see.

18/03/00
16:20 Fifteen Minutes of Fame in the Wake of a Disaster? Steve Wright
Alchemy may not get it all their own way if rumours are to be believed. Allegedly, if another, better offer is forthcoming from other sources BMW may sell to them instead.

Steve & Ian have been interviewed & photographed for the Birmingham Post & Evening Mail, (sunday edition) for their opinion of the BMW/Rover announcement. The newspaper is dedicating around half of the content to this subject. Also, on Sunday 19th March 2000 @ 2:00 they are to appear in the audience of 'It's Your Shout' a political programme looking at the weeks events, which is broadcast in the Midlands region by carlton Television. This week, to be broadcast from The Chamber of Commerce buildings in Birmingham.

Dave Morris, our Hamps representitive, is to be interviewed by Channel 4 at his local area meeting at 11.30am on Sunday the 19th March 2000 at: The "GATEWAY" Inn, Leigh Road, Eastleigh, Hants.

17/03/00
19:20 Rover Fiasco....This isn't the name of a new model! Steve Wright
At the time of writing this, in a cloud of anger, there are still a lot of un-answered questions. Mainly, who let this fiasco develop in the first place?, Why were the sale details so muted?

They are normally 'leaked' to the press or similar, and yet BMW were in discussion with Alchemy Partners as far back as last October. Did no-one have any idea what was going on? Only a few weeks before the sell off, BMW had it's Rover employees & family members at a meeting, proclaiming their dedication to the Rover brand, was it more a case of not rocking the boat until absolutely necessary? Who will now be responsible for maintaining Rover vehicles? Both new cars (imagine if you purchased a Rover two days before the announcement of a sell-off) and second hand parts. BMW probably do NOT want any more to do with Rover, the tie-up has tarnished their image enough.

The Rover employees have 'bent over backwards' trying to improve the image of Rover and now, in their words, have been stabbed in the back. It was always believed that BMW had a conflict of interest with the 600/800/75 competing with the 3 Series. Now that conflict has all but been eradicated. At one time, a developing or developed Country always had vehicle producing facilities, this helps to boost the economy and the spin off jobs help to lower unemployment figures. What official UK car manufacturing do we have now? Nissan, Honda, Fiat? What will happen when we get the next major world recession? Surely these manufacturers will look after their own countries first and withdraw or reduce output from overseas locations?

The decline of Rover wasn't all down to BMW. Rover, Austin Rover, BL, British Leyland, whatever you want to call it, has always appeared to struggle from crisis to crisis. Union disputes (in the 'Red Robbo' days), mis-management & lack of investment all helped to turn a potentially good marque into the butt of many a joke. At one point, whilst owned by British Aerospace, the company did have a glimmer of hope with it's highly succesful tie-up & information sharing with Honda, One has to wonder just how great Rover could have been if this partnership had continued? Unfortunately, we can only wonder...

It's a pity that it has all had to come to this because there is a great deal of praise for Rover products amongst our club members. Comments like "...these vehicles are very under-rated" and "...my friends laughed at me until they had a drive in it" are often attached to the end of letters we receive from new members. Rover's problem is one of marketing, they can't shake off the unreliable and 'old mans' image even though their products are as good as any other major manufacturer. And they haven't been helping themselves; poor range of models; overpricing; missing opportunities to market to a younger audience - we attend a huge performance car show at Silverstone each year. Vauxhall were there, Skoda(!) were there, but no sign of Rover. We as a club have over 700 members of all ages. We wrote to Rover twice suggesting closer links between us and them. We received no reply.

If Alchemy are really serious about turning Rover around we have a few suggestions.
1) Don't change the name of the company. This will lead to utter confusion amongst the public and cost millions to re-sign the dealerships. A telephone survey amongst our members revealed no-one wanted a name change.
2) Make your marketing much more aggressive and dynamic. Match competitors deals on entry level models. A 25 powered by an engine of less than 1100cc would be a good idea to take advantage of the lower road tax.
3) Market the sporty version of the 25 as an MG-R. Pitch it at a price and specification to compete with cars like the Citroen Saxo VTR. Get someone like Lotus to tune the suspension.
4) Make all models available from all dealers. At present only certain dealers are able to sell the MGF.
5) Ensure all models ordered new are available in a reasonable space of time. Despite all the overcapacity we hear about we are told some customers are waiting more than eight weeks for their car.
6) Establish a link with our club and take every opportunity to exhibit your cars at a wide range of different car shows, including those which attract a younger audience.
7) Remember, most people who criticise a Rover have never owned or driven one.


We phoned a number of our members tonight to survey their views on the Rover situation. This is what we found.
Most are furious with BMW for the way this has been handled, but are not surprised as they believed BMW had a secret aganda to fragment Rover and dispose of it.
Non wanted the new company to sell their cars as MG's. They believed this would lead to confusion and not benefit the marque in any way.
Most would like to buy another Rover but expressed concern at the limited model range which may make it difficult to find a model to replace their existing car.

It is all very well, these people who are now jumping on the band wagon & condeming the demise of Rover group. Just how many of these People have actually purchased & driven a Rover recently? Otherwise it's pointless harping on about the loss of this great marque, all they are doing is making a political statement & improving their image at the expense of others.

March 16, 2000
17:40 Rover Cars now MG!
It has been announced that Rover Group will be split. The 25,45, 75, MG & old mini will be built under the 'MG Car Company' name at Longbridge, & owned by Venture capitalists 'Alchemy Partners'. The new mini & LandRover will stay in the ownership of BMW.

John Moulton, of Alchemy, said "We are looking at making the company profitable within 2 Yrs". (It is alleged that the Company could be sold on within 5 Yrs). BMW have owned Rover Group for 6 years, losses in 1998 were £650M and greater losses are expected to be announced for 1999, estimated at £2M+ per day.

BMW will manufacture the 75, on behalf of MG Car Co., at Cowley.
BMW share prices rose on the Germany stock exchange by over £3.00 when the news was announced, reversing the recent shares trend.
John Moulton (Alchemy) also went on to say "we see the company as a mid-sized niche manufacturer, not a 'major player' in car production".
......more news as it breaks. (steve wright.)

Thursday March 16, 2000
Former Rover chief heads bid to save Longbridge
BY CHRISTINE BUCKLEY, JAMES DORANAND PHILIP WEBSTER
A BRITISH-BASED consortium led by a former Rover executive has put in a bid for the loss-making car company, which is expected to be offered for sale by BMW today.
The German company is believed to given the Government an assurance that the Longbridge and Cowley car plants will not close if, as expected, Rover is broken up and sold. But heavy job losses still appear inevitable.


The British consortium is understood to be led by the former Rover marketing director Kevin Morley, who resigned from the company after eight years in 1992 to set up his own advertising agency.
He has secured financial backing from the venture capital firm Alchemy, which is led by the City financier John Moulton. Mr Morley, who drives a BMW, lead an unsuccessful bid in 1998 to buy Rolls-Royce, claiming that it should not be sold to Germany.

Stephen Byers held talks with leading members of the consortium through last night and is believed to have agreed to offer government funding for the Longbridge plant in Birmingham. BMW were last night reported to be ready to offer to write off £1.8 billion of Longbridge's debts and to include a "sweetener" in any deal with Mr Morley's team.

Mr Byers had earlier had a long meeting with Joachim Milberg, the BMW chairman, emphasising the Government's commitment to Rover and its new working practices. He voiced the hope that BMW would show the same commitment, but Professor Milberg told him that the position was "difficult".
British officials accepted that Rover's £2 million-a-day losses had put huge pressure on Herr Milberg, and the company's directors are expected to decide today to sell the Rover name, while keeping the Land Rover, Mini and MG models.

The Longbridge plant - the most vulnerable Rover factory - employs more than 8,500 people and supports at least 30,000 jobs in components and the local economy. Mr Byers told BMW that the Government viewed Rover as strategically important and emphasised that the car company's workforce had responded with flexible working.

Union officials flew to BMW's Munich headquarters yesterday to meet their counterparts in the IG Mettall union and to seek meetings with BMW chiefs before the board meeting. The supervisory board includes union representatives who succeeded in saving Rover the last time it was under threat. Such an outcome is not expected today and union chiefs are pessimistic.
They have also questioned how venture capital-backed businesses could succeed. Tony Woodley, chief car industry negotiator for the Transport and General Workers' Union, said: "If BMW cannot manage Rover, who can?"

Thursday March 16, 2000Minister predicts proposal to break up Rover
BMW is to recommend the break up of loss-making British car firm Rover, Trade and Industry Secretary Stephen Byers has said.
Mr Byers's comments come ahead of a crucial board meeting in Munich, which could decide the fate of thousands of British jobs.

He said: "Clearly they are going to make a recommendation to the supervisory board to dispose of what they regard as the loss-making parts of the Rover network in the UK."
The meeting, in Munich, comes after Prime Minister Tony Blair pledged to do everything he could to safeguard the future of Rover.

It is reported that former Rover marketing director Kevin Morley is heading a British consortium, backed by the London-based venture capital firm Alchemy. It may make an offer for Longbridge, in Birmingham, and Cowley, in Oxfordshire, to the BMW board.
That would leave BMW with the profitable Land Rover operation, in Solihull, in the West Midlands, although there are reports that the German car giant would also retain the right to build the new Mini.
The debate within BMW, which is due to announce £1 billion losses for its Rover subsidiary, has clearly been heated.

A German newspaper reports that three BMW board members have been fired because of the dispute.
Sueddeutsche Zeitung also said that Rover will be sold to a British investment group, based in the Cayman Islands.

Thursday March 16, 2000
White knight hope for Rover (Secret British bid lined up to save ailing car firm .)
Kevin Maguire and Mark Milner in Munich
A wealthy British "white knight" has offered to buy BMW's loss-making Rover car plants in a deal that could save thousands of jobs and avert an economic catastrophe in the West Midlands.
Detailed plans tabled by an international financial consortium put together by the businessman will be considered today in Munich by the German company's supervisory board after senior BMW executives decided to cut its losses and dispose of unprofitable plants.


The former UK motor industry executive and his backers have been in secret talks for months with BMW.
He is believed to have submitted proposals to take over Rover's mass production at the Longbridge and Cowley factories, seeking state aid to modernise assembly lines in an effort to make them profitable.
Union leaders flew to Munich last night for crisis talks and Sir Ken Jackson, head of the AEEU engineering union, will seek a meeting in Brussels today with the European Commission president, Romano Prodi, or vice-president Neil Kinnock.
BMW will reveal today that Rover is costing it more than £2m a day with losses totalling around £800m in the last year, and a £1.4bn shortfall over the past two years. The effect is threatening the future of the world's 14th biggest car maker.
Rover sales slumped 26% to 143,343 cars compared with 193,919 in the year before, giving it just 6.25% of the British market.
BMW's share price jumped a record 12.8% when the Rover plan leaked out, indicating it will not backtrack.

Industry secretary Stephen Byers spoke to BMW chief executive Joachim Milberg yesterday as Tony Blair, fearing a political backlash if key Rover plants close, promised the government would do everything in its power to save jobs.

Ministers are all but resigned to BMW shutting or disposing of Longbridge and Cowley, keeping only the money-spinning Solihull Land and Range Rover complex and the Mini. The Mayflower engineering group is in negotiations to buy Rover's Swindon body pressing plant.
BMW directors are to consider the businessman's bid or invite other offers, though one senior Whitehall source suggested the ex-motor industry man's team may be the best option.
"He has the financial backing and has put in a bid. It is now up to BMW. The bottom line is we want to keep all the plants open," said the government insider. A German report claimed the consortium was based in the Cayman Islands.
As many as 50,000 workers could lose their jobs if BMW pulled the plug on Rover without finding a buyer.
The prime minister, DTI and unions were all kept in the dark by BMW, which is on the brink of a major u-turn after insisting in recent months it wanted to maintain the company it bought six years ago.
Mr Blair fears a political backlash if factories go to the wall with as many as 20 marginal seats in the West Midlands alone at risk.
Former Rover managing director Kevin Morley last night denied he was behind the bid. "It's not me - I wish I knew who it was," said Mr Morley.
Other names who industry insiders speculated could be involved included entrepreneur Douglas Llambias who backed a failed bid for Rolls Royce, ex-Jaguar boss Sir John Egan, City management buy- out specialist Doughty Hanson and even Formula One supremo Bernie Ecclestone.
Mayflower was also mentioned as a possible bidder for more than Swindon but the company refused to comment.
The prime minister is to pile pressure on the European commission to approve a £152m aid package for Longbridge. Brussels has held up the aid, crucial to Longbridge's revival, for six months and competition commissioner Mario Monti's office indicated it could be three more months before a decision is reached.
Downing Street fears Eurosceptics will use the delay to whip up another anti-Brussels campaign, ultimately undermining support for the single currency.
The German firm appears to have lost faith in Rover and signalled that the strong pound, with sterling jumping 35 pfennigs to 3.15 marks since a £3bn investment plan to rescue Longbridge was agreed early last year, was also a factor.
"Each pfennig means £8m of increased losses," a spokesman was reported as saying.
Mr Blair said that the government placed "enormous strategic importance" on Rover and declared: "We will do everything we can."
Union leaders fear thousands of jobs will go if Rover is broken up and sold off - and believe Longbridge and Cowley could not survive alone.
"Who's going to buy Long bridge in its current state? Toys 'R' Us?" asked one senior union official while another added: "The maths just don't work."
Tony Woodley, T&G transport union chief motor negotiator, accused the German company of treating its British workforce as "cannon fodder" by keeping them in the dark.
Sir Ken Jackson said: "It will be a catastrophe... the equivalent of dropping a nuclear bomb on the West Midlands."
The damaging uncertainty is likely to cost the company even more customers, adding to its troubles.
BMW pinned many hopes on the award-winning Rover 75 executive model, dubbed the "last chance saloon", yet despite picking up awards around the world it has failed in the showrooms.
Half the 50,000 Rover 75s built are still in the company's car parks awaiting buyers.
Three BMW directors - Henrich Heitmann, Wolfgang Ziebart and Carl-Peter Forster - were reported yesterday to have quit the BMW board over moves to sell parts of Rover.

15/3/2000
JOBS FEAR AS ROVER REFUSES TO DENY SELL-OFF PLAN
By Alan Jones and Rebecca Allison, PA NewsThere were fears tonight that tens of thousands of jobs at car giant Rover are in jeopardy after German owner BMW refused to deny a report that it is to sell factories, including the huge Longbridge plant.

As panic mounted over Rover's uncertain future, union leaders demanded that BMW clarify its position once and for all by reaffirming its commitment to the embattled car manufacturer.
BMW tonight confirmed it had been working on a number of proposals to "re-structure" the Rover group, which employs thousands of workers at Longbridge in Birmingham, Cowley near Oxford and other UK plants.
The idea of selling the factories was one of a number of "conceivable variants" which will be discussed by the BMW supervisory board at a meeting in Munich on Thursday, it said.
But the Suddeutsche Zeitung newspaper claimed BMW had already found a buyer for Rover, and that the German company would keep Land Rover and Mini.
The report, to be published tomorrow, said BMW would be presenting a plan to the board meeting to sell its Rover factories and that the buyer was not an established car manufacturer.
Unions warned 50,000 jobs would be lost throughout the West Midlands if Longbridge closed.
The Birmingham Chamber of Commerce and Industry said that, if true, the BMW move would be a "devastating" blow for the West Midlands.
Spokesman John Lamb said the chamber had estimated that up to 50,000 jobs in the region's economy were dependent on Longbridge's survival.
Mr Lamb added that he was particularly concerned at rumours that Rover could be sold off to venture capitalists rather than another automotive concern.
Reports have regularly appeared in German magazines and newspapers over the past few months suggesting the Rover subsidiary will be sold because of heavy losses, but they have always proved unfounded.
BMW said in its statement, issued in Munich tonight: "The board of management at BMW has been working on different scenarios to restructure the Rover group.
"The company has reported regularly to the public about the current situation at Rover.
"The scenario referred to in the article as a plan is just one of the conceivable variants. The decision preferred by the board of management will be presented during the regular supervisory board meeting on Thursday the 16th and published afterwards."
BMW refused to expand on the statement but also refused to rule out any suggestion that it definitely would not be selling Rover.
The statement immediately set alarm bells ringing among union leaders who said they were seeking urgent talks with the company.
Union leaders will meet senior officials from Rover for talks at a hotel near Birmingham tomorrow.
The talks were scheduled weeks ago but the agenda will be "ripped up" as the unions demand assurances that Longbridge is safe.
Sir Ken Jackson, general secretary of the Amalgamated Engineering and Electrical Union, said BMW had previously given assurances that it remained committed to Rover.
He said: "I am confident that BMW will remain committed to Rover but they have to make their position absolutely clear. It is time to remove any shadow of doubt about the future."
Tony Woodley, national officer of the Transport and General Workers Union, said he was seeking urgent talks with the company but believed selling off Rover would not make any sense for BMW.
"It would also be unacceptable to the workforce and no doubt the British Government."
Meanwhile, the Department of Trade and Industry described the German newspaper report as "speculation".
Birmingham Northfield MP Richard Burden, whose constituency covers Longbridge, said BMW officials had personally assured him they were committed to Longbridge "for the long term" with an investment strategy that would bring £500 million a year into Rover.
"Rumours in the press are not new," said Mr Burden.
"Indeed the most damaging thing for Rover over the past year has been constant rumour, speculation and counter-rumour."
He added: "What astonishes me today is that the latest reports circulating in the German press have not been conclusively denied by BMW.
"That is why I am calling on BMW to put an end to the speculation and to reaffirm their commitment to Rover.
"In doing so I am asking them to do no more than to keep their word to me, to the British Government and the 50,000 people whose jobs depend on Longbridge."

Midlands MP Michael Fabricant said he would be demanding an emergency Commons statement from Mr Byers tomorrow.
In a statement, the Tory MP told PA News: "I shall be tabling a private notice question tomorrow asking for a statement from the Secretary of State for Trade and Industry regarding the possible sell-off of Rover.
"Hundreds of millions of pounds of British taxpayers' money were provided to encourage BMW to maintain the Longbridge plant. If reports are to be believed, tens of thousands of jobs will now be at risk if Rover is to be broken up.
"These reports are persistent. There needs to be an urgent statement in the House of Commons by the Secretary of State."

Up to top


 
 
THE Club for ALL Modern Rover Owners . . . .