Rover Case Study

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Rover was founded when Lord Austin founded the Austin Motor Company which merged with Morris and Rover in 1952 to create British Motor Corporation. Rover has faced a series of mishandled rescue attempts, frequent ownership changes and ever declining performance but never secured long-term viability. In 1968, Harold Wilson engineered the merger of Leyland, Rover’s parent company with British Motor Corporation to create a giant national champion in the industry but the merged giant was forced into a rights issue in 1972 and collapsed in after the oil price shock of 1974. Even the nationalization was not successful when a second Wilson government took British Leyland into state hands in 1975 and then it was torn into pieces by industrial relations disputes and the government puts £900 million to sustain existence of Rover. In 1975, when Margaret Thatcher came into power the company was renamed as the Rover Group and Thatcher was determined to privatize car business and leapt at the chance to sell Rover to British Aerospace. However, the privatization didn’t work either because British Aerospace could not offer synergies to Rover other than private ownership. In 1994, British Aerospace sold Rover to BMW and it was a real hope for Rover-BMW needed to increase its …show more content…

Nanjing faced major challenges in Rover production in units of Engineering, Purchasing, Distribution, Staffing and Intellectual Property. In 2007 Nanjing relaunched sportscar production since Rover’s collapse in Longbridge and the chairman of Nanjing’s UK operation planned to produce 25,000 cars a year and twice of that in two years. Meanwhile, SAIC had also been active and owned the rights to produce Rover models under “Roewe” brand in

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