BMW rules out early Rover's return to US
Wednesday 05 July 1995
BMW, the German car maker, has ruled out a relaunch of Rover cars into the lucrative American market until at least the year 2000.
Bernd Pischetsrieder, chairman of BMW - which acquired Rover in the spring of 1994 - said the British manufacturer could not afford another failure in America, and the company would have to develop new products before its return to the world's biggest car market.
But he also said the acquisition of Rover meant BMW would avoid the fate of its German rival Daimler-Benz, which said last week that the strong mark would cause total losses and restructuring costs of up to DM3bn (pounds 1.4bn).
Daimler-Benz said it would consider transferring production out of Germany, boosting purchases abroad and reappraising its portfolio of shareholdings. The company is expected to spend more than DM1bn moving some production abroad.
Mr Pischetsrieder said in an interview that the internationalisation of production and the weakness of sterling had helped to minimise exchange rate risks. A lower sterling meant lower revenues, but it also meant lower production costs at Rover.
Mr Pischetsreider agreed that sterling and dollar weakness made Germany a less attractive manufacturing site, but hinted that America was likely to benefit from any shift in production overseas. BMW imports only a quarter as much from the US as it sells there, and still aims to achieve "balanced trade".
Rover pulled out of the US car market in the 1980s after the failure of its Sterling model, but sales of Land Rover recreational vehicles are growing.
Mr Pischetsreider said: "Rover would not launch cars into the States before the year 2000 because the products and concepts have to be absolutely right and and Rover cannot risk another failure.''
The purchase of Rover had gone smoothly, but he was "not yet sufficiently satisfied". Although BMW and Rover models would never be sold through the same dealerships, the two companies' distributors could work more closely, he said.
Missing Malaysia Airlines Flight MH370: Acclaim for retired Australian defence chief Angus Houston who is leading the search for the airliner
South Korea ferry: Four dead and almost 300 missing as mass rescue gets underway
Malaysia Airlines MH370 co-pilot's phone 'was on and made contact with network tower' 30 minutes after plane turned around
Oscar Pistorius trial: Reeva Steenkamp told athlete she 'loved him' for first time in Valentine's Day card
Lunar eclipse 2014: Images of the spectacular 'blood moon'
David Cameron: 'Jesus invented the Big Society – I'm just continuing God's work'
The food poverty scandal that shames Britain: Nearly 1m people rely on handouts to eat – and benefit reforms may be to blame
US Navy christens huge $3 billion destroyer ship USS Zumwalt that appears as a fishing boat on enemy radar
Nigel Farage fatigue? Half of voters ‘immune’ to Ukip’s appeal
Scottish independence: It is the English who should be on their knees, begging the Scots to vote ‘No’
Nigel Farage on Have I Got News For You: Ukip leader ridiculed over expenses and party 'fruitcakes'
- 1 Poveglia: 'World's most haunted island' up for auction...is anyone brave enough to buy it?
- 2 Refugee facing deportation from Sweden saved by fellow passengers refusing to let plane leave
- 3 Naked yoga: the bare truth - it's already big in the US, and has now landed here
- 4 24 people applied for the 'world's toughest job', here are their interviews
- 5 Drugs giant GlaxoSmithKline bribed doctors to boost sales, says whistleblower
iJobs Money & Business
£40000 - £50000 per annum + BONUS + BENEFITS: Harrington Starr: A leading, Cit...
£35000 - £50000 per annum + Bonus + Benefits: Pro-Recruitment Group: You must ...
£45000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: Corporate Acti...
£350 - £400 per day: Harrington Starr: An opportunity has arisen at a FCA regu...