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BMW's UK Plants for Sale?

19 October 2000

    London - There are strong rumors circulating the British Motor Show in 
Birmingham, England this week that Rover and Mayflower might be interested 
in acquiring the BMW-owned assembly plants at Longbridge and Swindon. 
Swindon currently supplies parts to BMW for its new Mini, slated for 
introduction next year and BMW says its plans are that the plant will continue
to supply parts once it is sold. British coachmaker Mayflower is reported 
to be interested in Swindon.

    It's a different story for Longbridge. One of Britain's oldest and largest 
assembly plants, it has benefited from some recent investments but is still 
considered a museum piece when it comes to modern-day manufacturing. It's 
hard to imagine that anyone would buy it, at least for building modern day cars.  
BMW says it is talking to several companies about the sale of the plants, but 
that could be wishful thinking. With the pound sterling remaining strong and the 
euro showing no signs of recovery, the U.K. will have difficulty in attracting 
outside investors to buy aging plants such as these. A U.K.- based buyer is 
much more likely.