BMW to Invest 3 Billion Pounds in Rover

10/14/96

Reuters reported that the London newspaper the Independent has published an article that says German car maker BMW will invest three billion pounds sterling in Britain's Rover Group. The investment will revamp the unit's product range over the next 10 years.

BMW wants to raise Rover's production about 50% to 750,000 cars annually, according to Rover's chief executive Walter Hasselkus, who took his current post at the ailing company on September 1.

BMW had already announced half of the investment, and the Independent says the company will spend another 1.5 billion pounds sterling after the year 2000. Hasselkus reiterated Rover's belief that it won't turn a profit until 2000. The Independent wrote that Rover's production increase will likely be accompanied by the construction of a 500 million pound sterling engine plant in mid-west England.

Paul Dever -- The Auto Channel