Business Studies coursework Task 8 continued:

Business Studies coursework Task 8 continued:

Latest news shows that the car company, MG Rover will be taken over by

a Chinese car manufacturer. This may vastly affect the sales of car

production for the MG Rover Company. The company ‘Shanghai Automotive’

will own 70% of the company whilst MG Rover owning 30%, which means

that the company may change names and affect customer’s who already

own a MG car, meaning they may feel unhappy with the change, as the

company production maybe moving to China. This means sales and

customer satisfaction may change dramatically for the business.

As the company is taking over (Shanghai Automotive) this means that

they are going to inject around £1 billion pounds aiming to make over

100 million cars a year. This means saving over 6000 jobs that would

have been depleted if the Chinese car manufacturers had not come up

with the money to save the business. This maybe recognised by the

public, meaning that they like the new changes as they will be able to

carry on with their job.

However, the problems that have occurred are that they want to

concentrate the main manufacturing of the car over in China, and

bringing machines and technology over to Britain, but only are

considering making around 200,000 cars. This means that the cars

available are lower, and that people who buy the cars may think that

they are buying a British car, but are buying a car exported from

China, which they may not like. Especially if something goes wrong

with the car that they have bought, they do not know if there are

local garages and car manufacturers near their homes. This could mean

that the customer is unhappy as more expenses are being made just to

satisfy there non-British car. They may also be against the fact that

there car has not been made in Britain; therefore it can only be fixed

if it was sent back to the manufacturers in China.

Reports have shown that there are three types of cars that they will

introduce under the new manufacturers ‘Shanghai Automotive’. The first

will be the mid-sized family car, then the sports car, and finally a

smaller car like the Rover 25, and also a sleek executive model. This

is good news as we are promoting the MG-TF, which is a sports car, so

in the future when we are promoting the MG-TF, we can be sure that

sales will happen, because sports cars will still be made.

As the production of cars is being extended to China, both ‘Shanghai

Automotive’ and ‘MG Rover’ have said they are expanding the business