BMW could sell Rover brand name if Ford acquiesces

[Alx]

According to Forbes, BMW CEO Helmut Panke said that the German automaker is in talks with several Chinese manufacturers about purchasing the Rover brand. Some of the manufactures include automakers Shanghai Automobile Industry Corp (SAIC) and Nanjing Automobile who have, in the past, expressed interest.

However, Panke said that “Ford has the right of first refusal.” Thus, the U.S. automaker would be given first shot in purchasing the brand name even if BMW had reached price agreements with the Chinese automakers. Interestingly, BMW has yet to ask Ford if the automaker is interested.

[Source: AFX via Forbes]

 

[LaArtist]

do they still own rover brand name?? didnt know that.. sell it.. its worthless

 

[Beemer B773ER]

Maybe BMW should convert Rover into their research division and release a bunch of design studies to explore new markets. They've got Mini covering the compact car market, they've got BMW covering the car and SUV market, and Rolls Royce to target the up-end market. Maybe they could use Rover to target niche or emerging markets...but that probably would involve too great of a financial outlay...and ofcourse the Rover name is near dead and buried.

I guess a sell-off is the only feasible idea. Makes me wonder why they bought Rover in the first place ?

 

[sunnyman12]

to get the Mini name...that was the only reason

 

[Beemer B773ER]

to get the Mini name...that was the only reason

Oh.. well that sucks..!!

I guess selling it off is the way to go... but why has it taken them so long to come to this decision?

Either way, there's no reviving the Rover brand.. let's see what the Chinese makers can do with it.

 

[Centurion]

Rover needs a bit make over. Their cars are pretty worthless and only sell in the UK, across the atlantic Rover probably don't even sell more than 2000 cars per year.

 

[Alx]

I bet if someone invested some time and money and effort in remaking this brand with a new and exciting line-up it would do great.

 

[vabboud]

rover has sucha great hstory it would be a shame to drown the way they did
the 75 was a real fine car, the facelift really messed it up

 

[Beemer B773ER]

I bet if someone invested some time and money and effort in remaking this brand with a new and exciting line-up it would do great.

Do you think so ? ..im not so sure. The Rover brand name isn't really renowed for anything nowadays...and to bring out a range of new and exciting vehicles would probably go against the image of Rover being old-school British.
It could work, but it would need a total makeover. Getting rid of the old Rover image, and building a new image and direction from scratch. And from a marketing and financial point of view, that's a very large project. That's like virtually creating a new brand, and the only thing you can work with is the fact that you already have the name for your brand chose (ie: Rover).
Your point is similar to the one i made about how BMW could use Rover as an outlet for salient vehicles. Not mainstream like BMW and Mini...but something individual and unique that captures maybe young buyers (kind of like Toyota has done with Scion in America)...maybe BMW could use Rover as a Scion-type brand in UK.

It'd be a big project, and i'm sure BMW already have their hands full with BMW, Mini and Rolls-Royce...but it could work if BMW's willing.

My other thought is, maybe BMW could sell the Rover brand to the European Space Agency, and they could use it as a name for any future space rovers... get it ? ..hehehe.. yeh, i know.. that was lame.

 

[siko]

Didn't they sell the brand to an English business consortium? For a token 1 pound?

That was at the same time they dumped Land Rover to Ford.

 

[siko]

Rover was sold in March 2000 to a venture capital firm named Alchemy Partners:
http://news.bbc.co.uk/1/hi/business/679169.stm


... so what the hell is Forbes talking about?

 

[Osnabrueck]

Good question. I'm throughly confused now.

 

[EnI]

BMW sold Rover facilities, know-how, the MG brand & the Austin brand to Phoenix Group in 2000, but retained the rights to Rover, Land Rover, Mini, Triumph, Riley brand names.

The Rover brand was licensed royalty-free to Phoenix. But Phoenix soon rebadged Rover cars to MG.

In June 2000 BMW sold Land Rover to Ford (facilities, brand, know-how). The contract includes the article about Ford getting first refusal right for the Rover brand rights when BMW decide to sell it.

Nanjing Automobile then buys Rover facilities, know-how etc from Phoenix in 2005.

Now two Chinese companies (Shanghai Automotive & Nanjing Automobile) are interested in buying rights to Rover brand. BMW are willing to sell the rights. The negotiation about price are still on - but there are some rumours the Shanghai Automotive won the bidding race.

When the price is set, Ford will be asked to buy the brand at the price BMW & Chinese buyer have agreed. If Ford decline to buy the brand, then Chinese will get it.

After that BMW will still own the right to MINI, Triumph, and Riley brands.


Clear?

 

[klier]

Rover was sold in March 2000 to a venture capital firm named Alchemy Partners:
http://news.bbc.co.uk/1/hi/business/679169.stm


... so what the hell is Forbes talking about?

Yeah, I was 99,9% sure BMW sold everything. The Quandt family weren't really happy with billions in losses....

 

[RikfromBelgium]

as enilab says, the brand "Rover" is still in the posession of BMW

 

[klier]

Yeah so I see.

I say keep it. No need to get some extra money by selling Rover now, and maybe they can make something out of it again in 20 years time, when people have forgotten the current cars but remember the name....

 

[Top Secret]

BMW own Triumph! Oh boy...that's pretty cool.

 

[EnI]

BMW own Triumph! Oh boy...that's pretty cool.

Indeed.

There were even some ideas to revive the brand - as a small Mazda Miata fighter: Triumph Spitfire.

After BMW had pushed Z4 upmarket, there were plans to build a smaller roadster on E87 platform: the Z2 (E88). They had canceled the Z2 project due to marketing reasons (inexpensive BMW-roadster is an oxymoron), and designed a MINI roadster instead. But the problem is MINI roadster has no historical iconic roots - like e.g. Cooper, Cabrio, Traveller. So the marketing department came out with the idea of Triumph revival: for a puristic small roadster based on MINI (FWD) or E87 (RWD) platform. But for now the project is on hold due to market conditions.

 

[Imhotep Evil]

to get the Mini name...that was the only reason

Nope, that's just stupid.
BMW belived that in order to survive they need to sell more cars in more market segments were the BMW brand could not go. Theoretically a car manufacturer can only survive if they sell at least 1,8 to 2,0 million cars.

 

[siko]

[...]
Clear?