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Rover & Honda: THEY IS...Talking, at least

10 May 2000

Shhh...there's secret talks going on

    London - As reported yesterday, or should we say speculated, despite
denials from Honda about possible interest in Rover, Honda apparently is
involved in talks with the Phoenix Consortium.  The British news media is
describing it as "secret talks".  Purportedly, the talks involve more than
just helping to secure a future for the Rover badge.  Discussions also
include building Hondas at the Longbridge plant (purchasing the plant was
part of the deal for Rover struck between BMW and Phoenix yesterday
morning), and helping Phoenix to build new models.

    At present, the Longbridge plant will continue to build the Rover 25, 45,
75, add a new station wagon version of the 75, and continue the MGF.
Earlier reports stated that Longbridge will also build the old Mini,
although the new Mini will stay under BMW control and be built at the BMW
plant in Oxford.

    Phoenix CEO John Towers said that he intends to make Rover profitable
within two years.  To do so, he would have to erase the loss of about
$2,000 per Rover sold.  One of the first steps will be to scale back
production to a total of 200,000 cars, compared to last year's 226,000. 

    For enthusiasts, the deal between Phoenix and BMW included some very
exciting tidbits.  Phoenix will now own the rights to many of the other
great British marques: MG (as indicated above), Triumph, Austin Healey,
Riley and Wolseley.  Might a Rover/Honda relationship produce a Triumph
based on the Honda S2000 model?  Now that would be tasty!

    More fuel for the speculation fire:  The MGF was never developed to be
imported into the US, although every sportscar enthusiast who has seen it
up close and personal wishes it would have been.  Two years ago, unnamed
sources at BMW told us that the decision to not bring the vehicle stateside
was because they didn't want it to compete with their Z3 & M3 models.
Perhaps Phoenix will not have the same concerns. 


MJR