UTA_flyinghigh
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What Next After Rover Bankruptcy?

Mon Apr 18, 2005 4:34 pm

I can't remember the last time a marque went under (not brand reshuffling like Oldsmobile and Plymouth or buyouts like Daewoo) so I have a few questions :
What happens to :

1) people who ordered a '05 model and have not received it yet ?
2) people who shall (...) need parts in the future
3) factories and other assets
4) exclusive (Rover only) dealerships
5) the employees

Do we see speculation on the last remaining cars for sale and will a mothballed '05 MG become a clssic of important value ?

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cornish
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RE: What Next After Rover Bankruptcy?

Mon Apr 18, 2005 5:25 pm

I read that apparently in the UK the dealer that sold you the car has to honour the warranty - even if they then change over to selling another brand of car. How this works if the dealer goes out of business I'm not sure.

Likewsie if you've ordered the new car from the dealer, you should be able to get your deposit back form the delear. Most people won't actually pay the first instalment until they've actually taken delivery of the car.

I believe that their are some consumer laws that the customer is protected by in these instances - who pays the compensation, etc though, I'm not sure.
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whitehatter
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RE: What Next After Rover Bankruptcy?

Mon Apr 18, 2005 6:30 pm

The dealers will get someone like GE Capital to do the warranties. They are Britain's biggest provider of third party warranties for vehicles sold by dealerships.

My secondhand Polo had a GE warranty.

As for point 3, there are NO assets. Everything was either sold off, mortgaged or split off into other companies. Rover is completely skint, with liabilities well in excess of assets by the look of things. That's why SAIC have pulled out as the company is insolvent.
Lead me not into temptation, I can find my own way there...
 
UTA_flyinghigh
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RE: What Next After Rover Bankruptcy?

Mon Apr 18, 2005 7:11 pm

Quoting WhiteHatter (Reply 2):
As for point 3, there are NO assets.

A factory has got to have a certain value; land, machines/tools and the building, doesn't it ?

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jorge1812
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RE: What Next After Rover Bankruptcy?

Mon Apr 18, 2005 8:10 pm

Hi.
I may have missed something. Is Rover bancrupt? Have they stopped producing cars? What about the Mini, is it still produced?

Georg.
 
UTA_flyinghigh
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RE: What Next After Rover Bankruptcy?

Mon Apr 18, 2005 8:14 pm

Is Rover bankrupt?
Indeed they now are as the deal they had with the Chinese comapny SAIC was cancelled.

Have they stopped producing cars??
The last remaining orders may be honored but after that production lines will stop.

What about the Mini, is it still produced??
Of course as the Mini brand is part of the BMW Group.

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Alessandro
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RE: What Next After Rover Bankruptcy?

Mon Apr 18, 2005 8:18 pm

I think the Chinese will buy the factory, they just wait for 6 months to get a much better deal...
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jorge1812
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RE: What Next After Rover Bankruptcy?

Mon Apr 18, 2005 8:18 pm

Quoting UTA_flyinghigh (Reply 5):
Is Rover bankrupt?
Indeed they now are as the deal they had with the Chinese comapny SAIC was cancelled.

Have they stopped producing cars??
The last remaining orders may be honored but after that production lines will stop.

What about the Mini, is it still produced??
Of course as the Mini brand is part of the BMW Group.

Thanks for the answers!!!

Georg.
 
dazultra
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RE: What Next After Rover Bankruptcy?

Mon Apr 18, 2005 8:34 pm

I hear that they have a new badge...




 Silly
 
whitehatter
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RE: What Next After Rover Bankruptcy?

Mon Apr 18, 2005 9:43 pm

Quoting UTA_flyinghigh (Reply 3):
A factory has got to have a certain value; land, machines/tools and the building, doesn't it ?

Longbridge was sold ages ago! They rent it back from a property company.

Wal-Mart and Tesco are poised to do the dirty deed and redevelop the estate.

The production line is another matter. Apparently SAIC already bought some of it, and what is left won't be worth a candle. Alchemy might buy some at scrap prices if they buy the MG marque out of the ruins and set up production of the sports line.

All the valuable bits (Rover finance, Stoodley Castle) are apparently in new companies owned by the directors. Hence the inquiry into just what's gone on. It seems like some asset stripping has happened.
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tristarenvy
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RE: What Next After Rover Bankruptcy?

Tue Apr 19, 2005 5:50 am

So, this pretty much means that the last independent (more-or-less) mainstream large scale UK automaker is no more?
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ltbewr
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RE: What Next After Rover Bankruptcy?

Tue Apr 19, 2005 6:57 am

Here in the USA, we have had a number of Car manufacturers, importers and distributors go out of business. The latest was Daewoo, but over the years included Sterling (the imported to the USA models of the Honda based Rover designs), the Yugo, various BL, Austin-Rover brands, Triumph and similar imports. With American Motors cars, the last being the Alliance, a Renualt 9 based model, Chrysler, whom bought the company from Renualt mainly for the Jeep line, took responsibility for parts, recalls and warranties.
The last real American based auto manufacturer to stop making cars was Studebaker in 1966. Like Rover-MG, though they made some excellent cars, and some unique models like the Avanati near the end, they just ran into problems like Rover-MG did. They didn't have enough sales of their limited models, thus no money to revamp and update their models, competition of the big 3, (GM, Ford, Chrysler) and some imports (mainly VW then), high overhead/labor/legacy costs and management problems.
There is little doubt that the end of Rover-MG has been decades in the making, from bad management, horrible labor relations, poor designs, poor marketing, insufficient capital, losing markets due to changes (like the USA), poor reliability, obsolete designs and so on. It is sad that one of the greatest producers of cars, the UK, no longer has any citizen corporate owners making any major brands of cars.
 
FLYtoEGCC
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RE: What Next After Rover Bankruptcy?

Tue Apr 19, 2005 6:58 am

It appears that way. Out of interest, how much news coverage are other countries getting about this?
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ltbewr
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RE: What Next After Rover Bankruptcy?

Tue Apr 19, 2005 7:07 am

In the USA, generally, there is little coverage of this bankruptcy, except on some business programs and in connection to the UK elections.
 
petertenthije
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RE: What Next After Rover Bankruptcy?

Tue Apr 19, 2005 7:22 am

Quoting FLYtoEGCC (Reply 12):
Out of interest, how much news coverage are other countries getting about this?

On the day of the bankruptcy it was reported briefly. Nova or Netwerk (the Dutch Newsnight) had a deeper look into it. And then it went silent again. You might find an article in the motoring press, but that's it.
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nighthawk
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RE: What Next After Rover Bankruptcy?

Tue Apr 19, 2005 7:38 am

what you need to remember is the knock on effects all this is going to have: a lot of the local suppliers probably dealt exclusively with rover, as a result their entire customer base has dissapeared, and they will soon follow them down the swanny...

BBC news suggests 6,000 rover employees have lost their job, and between 15,000 to 20,000 in support industries could follow.

thats 20,000 people now looking for new jobs!
 
aa757first
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RE: What Next After Rover Bankruptcy?

Tue Apr 19, 2005 7:41 am

Quoting UTA_flyinghigh (Thread starter):
4) exclusive (Rover only) dealerships

Well, if they were corporate owned, they are gone. But if they were franchised, they will just go to used cars or get another franchise.

Quoting UTA_flyinghigh (Thread starter):
2) people who shall (...) need parts in the future

I'm sure a third party already makes parts.

AAndrew
 
Marcus
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RE: What Next After Rover Bankruptcy?

Tue Apr 19, 2005 8:26 am

I test drove the MG ZR last year and was very close to buying one, but at $23,000US here there a lot more options in this price range...............still it was more fun and exciting to drive than any other option currently sold here except of course for premium brands like BMW.

I guess prices might go down but I'm sure the resale value is still freefalling.
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UTA_flyinghigh
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RE: What Next After Rover Bankruptcy?

Tue Apr 19, 2005 2:56 pm

Quoting FLYtoEGCC (Reply 12):
Out of interest, how much news coverage are other countries getting about this?

Even in Ireland which is pretty close to the UK, a few words on the day of the bankruptcy but nothing else; it didn't even make the headlines in the morning papers.

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salso
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RE: What Next After Rover Bankruptcy?

Tue Apr 19, 2005 6:25 pm

Well, it's still easy to at least get parts. I drive a Rover 45 and haven't had problems until now, but I wonder what will happen in... let's say 5 years' time. And sooner or later I'm gonna sell the car. Will I be able to do it?
 
whitehatter
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RE: What Next After Rover Bankruptcy?

Tue Apr 19, 2005 8:43 pm

Rover's original parts operation was Unipart. That was separated off some time ago. The parts operation is now a company called XPart which is part of the Caterpillar Logistics Services group and is a separate and healthy business as well.

Yes, that Caterpillar. The American one.

http://www.xpart.com/html_content/pressReleaseEnglish_20050405.htm
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DeskPilot
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RE: What Next After Rover Bankruptcy?

Tue Apr 19, 2005 9:04 pm

Who owns the Land Rover and Range Rover brands - BMW ?
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UTA_flyinghigh
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RE: What Next After Rover Bankruptcy?

Tue Apr 19, 2005 9:09 pm

Quoting DeskPilot (Reply 21):
Who owns the Land Rover and Range Rover brands - BMW ?

Nope, Ford does.

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tristarenvy
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RE: What Next After Rover Bankruptcy?

Tue Apr 19, 2005 9:44 pm

Quoting FLYtoEGCC (Reply 12):
Out of interest, how much news coverage are other countries getting about this?

None that I've seen in American press, I did notice it on The Sun's website. You gotta remember the last CAR badged as a Rover in the USA was the long forgotten 1980 3500 (SD-1) sedan. The Rover 825/827 was called "Sterling" and no real connection to Rover Cars was implied...
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RayChuang
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RE: What Next After Rover Bankruptcy?

Wed Apr 20, 2005 12:31 am

I think what caused MG Rover's demise is the fact they have no car in the very popular "Multi Activity Vehicle" category in Europe. When vehicles like the Citroen Xsara Picasso and Opel/Vauxhall Meriva (B-class) and Ford Focus C-Max, Renault Scenic and Volkswagen Touran (C-class) are selling at a good clip (despite the fact car reviewers in Europe kind of thumb their noses at them), had MG Rover offered an MAV-class vehicle they'd still be around today. After all, Honda has made market gains in Europe thanks to the success of the Jazz (B-class) and FR-V (C-class) MAV's.

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