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9 April, 2000An alternative solution for a Rover buyout is being presented to BMW.
GREAT BRITAIN: The Guardian reported on April 6 that a "rescue operation" for Rover cars was being presented as an alternative to the original offer by Alchemy Partners, a private venture fund, to take over the troubled car company from the German automotive firm, BMW.
Initially code-named "Project Phoenix", the operation would consist of a consortium of venture capitalists, wealthy Rover dealerships and trade unions, plus the UK government would provide a series of direct government financial guarantees. It is said that the government wants the new owner to be "committed to high-volume car manufacturing."
The crisis at Rover began when BMW announced in mid-March that it had decided to sell Rover and that the Group would be broken up. Major factors for the BMW decision were said to be the high value of the British pound and a 25 per cent drop in Rover car sales in the UK, at a cost to BMW of DM 16 billion. However, there has been very strong reaction particularly from the British trade unions to the announcement by Alchemy that, if it succeeds in its bid to take over Rover cars, it will slash thousands of jobs at the Longbridge plant in the Midlands.
Initially code-named "Project Phoenix", the operation would consist of a consortium of venture capitalists, wealthy Rover dealerships and trade unions, plus the UK government would provide a series of direct government financial guarantees. It is said that the government wants the new owner to be "committed to high-volume car manufacturing."
The crisis at Rover began when BMW announced in mid-March that it had decided to sell Rover and that the Group would be broken up. Major factors for the BMW decision were said to be the high value of the British pound and a 25 per cent drop in Rover car sales in the UK, at a cost to BMW of DM 16 billion. However, there has been very strong reaction particularly from the British trade unions to the announcement by Alchemy that, if it succeeds in its bid to take over Rover cars, it will slash thousands of jobs at the Longbridge plant in the Midlands.