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Rover's Financial Position Looking Jolly Good

12 June 2000

    London - Phoenix Consortium, the new owner/operator of Rover Cars, appears 
to slowly be turning around the company's negative cash flow situation, after 
just a few weeks of their deal with BMW.

    Projections for the first three months show that Rover will have just a 
$3.2 million negative flow for the quarter, while BMW had reported losing nearly 
that amount each day, in the days leading up to the deal.  Officials for the 
company stated that the improved outlook is a result of the absence of heavy 
depreciation charges and interest costs incurred by BMW.  They feel that with 
increased UK sales since May, when Rover began offering steep discounts, and a 
new commitment to cut costs, that the company could attain a positive cash 
flow by next year.

   Phoenix also confirmed it was exploring the possibility of developing a 
high-powered racing car in association with Lola.  In addition, Rover has 
decided to scale back the Rover, MG, and Mini badge presence in some overseas 
markets.


MJR