Rover Group Case Study

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COLLEGE OF HIGHER EDUCATION STRATEGIC MANAGEMENT BUSA635 Case Study “The Rover Group - a new future for the millennium?” Instructed By Prepared By : Dr.Grace Khory : Ameed Bshara (1095029) Oct.27,2011 1 Summary: The Rover Company is a former British car manufacturing company founded as Starley & Sutton Co. of Coventry in 1878. The Rover marque became the primary brand of the then newly renamed Rover Group in 1988 as it passed first through the hands of British Aerospace and then into the ownership of BMW Group. Technological know-how gained from Honda and financial investment during the BMW ownership led to a revival of the Rover marque during the 1990s in its core midsize segment. In 2000, BMW sold the Rover and related MG car activities of the Rover Group to the Phoenix Consortium, who established the MG Rover Group at Longbridge. BMW retained ownership of the Rover marque, allowing MG Rover to use it under license. In April 2005, Rover branded cars ceased to be produced when the MG Rover Group became insolvent. BMW sold the Rover marque to Ford in 2006 for approximately £6 million, heralding an option of first refusal to buy it as a result of its purchase of Land Rover. Ford thus reunited the original Rover Company marques, primarily for brand-protective reasons, in preparation for divesting its Premier Automotive Group subsidiary. Problem that force Rover to build alliances with others The British car manufacturing industry was one with many international well-known automotive brands. However, its recent development seems to show the once shining star has lost some of its glory. British car manufacturers have experienced dramatic changes in recent years as global competitors have successfully produced superior products with beneficial external factors such as labor and economic conditions. They face severe challenges in all aspects of

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