One Year On - How is MG Rover Coping After BMW's Noisy Exit? Asks just-auto.com Managing Editor

    LONDON, March 20 http://www.just-auto.com -- This time
last year BMW made an undignified exit from Rover, selling the flagging
British motor company to John Towers, a former Rover executive.  just-auto.com
managing editor, Dave Leggett looks at the past year and considers MG Rover's
current position.
    The report at
http://just-auto.com/features_detail.asp?art=461&app=1&fotw=sct says that
since the break-up, BMW has seen profits rise.  But what about Rover?  It has
managed to stay afloat, despite the challenges and cynicism it has faced, but
it evidently still has a long way to go.
    MG Rover, as it is now, appears to be financially secure for the moment
and the management plans to break even in 2002.  That would be a considerable
achievement, but major challenges are ahead:

    * MG Rover has a small presence on the global arena, producing just
      200,000 units each year.  (Compare this to Volkswagen Group's global car
      production of almost 5 million units and you can get an idea of the
      relativities involved).

    * The volume segment 25/45 model ranges need to be updated if Rover is to
      avoid steadily diminishing sales.

    However, MG Rover has proved it can bounce back and could have a bright
future.  Why?

    * MG Rover still has the "British" card to play.  The "Made in Britain"
      logo need not be a handicap -- this has been demonstrated by the success
      of Jaguar in the US.  Re-branding can work miracles.

    * Another maker could be extremely interested in working with MG Rover.
      There is value in the company's UK market share and distribution
      network.  Providing platforms for MG Rover could help to reduce future
      product development costs.

    BMW made mistakes with Rover but with careful guidance and strong
branding, the manufacturer could be looking towards a bright future.

    For the full report on the future of MG Rover, see:
http://just-auto.com/features_detail.asp?art=461&app=1&fotw=sct

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