New models developed or in development at the time of the sell off were:
· The Rover 75
· The Rover Rover 400/45 replacement - development retained by BMW
· The Rover Rover 200/25 replacement - development retained by BMW
· The Land Rover Freelander
· The new Mini - retained by BMW
· The Range Rover replacement
During BMW's ownership, it is questionable that Rover were making the huge losses that BMW claimed. Since Rover's accounts were not open to public inspection, several questions remain unanswered:
· How much was Rover charged for BMW's management time?
· How much was Rover charged for 'BMW Training' of Rover technicians in Germany, when in reality, Rover employees were put on the production lines to make BMWs.
· How much work did Rover do on BMW products, like the BMW X5 4x4, which was not cross-charged back to BMW?
If all of these factors were in BMW's favour within the BMW Group, Rover would have been a dumping ground within the BMW Group for excess costs to inflate the BMW side of the business's apparent fortunes.
When BMW sold Rover, they included the following assets...
· Most of the Longbridge plant (anything that had received investment, BMW retained to sell later on.)
· The Austin brand
· The MG brand
· A licence to use the Rover name (but not to own it)
· The stock of unsold cars
· The drastically weakened dealer network.
...plus the rights to produce:
· The Rover 75, 45 and 25.
· The old Mini for a short while
· The MG-F
But this lot is still cheaper than making everyone at Rover redundant and paying severance payments etc. Also, actually closing Rover would have been very unpopular - and the UK is BMW's second-biggest market, after all.
BMW retained the following:
· The Rover brand (this was a condition by Ford to stop Rover producing a 4x4 and branding it as a Rover, thus confusing the marketplace with regard to Land Rover)
· The Triumph brand
· The Riley brand
· The Mini brand
· All of the cash in Rover, as well as the debtors and creditors
· The Cowley facility
· Parts of Longbridge (engine & transmissions production - even though these engines and transmissions are not used by BMW). This was sold later to Phoenix.
· The Swindon pressings facility
· The Hamms Hall engine plant
BMW sold the following to Ford:
· Land Rover, including its dealer network
· The Rover Group's development facility at Gaydon
· The Heritage Motor Muesum at Gaydon (including Rover's Heritage Collection)
It could be argued that BMW purchased Rover for a bargain-basement price in order to stop it from becoming a competitor to BMW itself. They also put back Honda by four years, as already mentioned in my previous post by preventing another competitor from stepping on their toes. They invested selectively, only in the areas that they could sell on at a profit once they had acquired capability in those areas themselves. The crippled Rover that was left was 'set free' as a manufacturer with no development facilities or on-going development to use, with a largely outdated model range and, initially at least, dependent on BMW for the purchase of components (engines and panels) without which they could not build any cars. Leaving BMW with the modern facilities, the products in the pipe-line that it had wanted all along (ie: those which complemented the BMWs rather than competed with them), and a marque that they could resurrect - Triumph - and were not dependent on an outside supplier to be able make.
The overall cost of the excercise, once fully adjusted, was possibly minimal. Certainly a lot cheaper than creating a new marque from scatch. And a new marque would not have had the world-known abilities of the "MINI" brand which BMW are now actively exploiting.
This could be seen as a cynical view. However, in the cold light of day, the facts fit the theory. Personally, I am inclined towards this theory more than against it. BMW learnt a lot from Rover about what they can and cannot do in the mass market.
It is still to be seen whether BMW will launch a new product range by resurrecting 'Triumph'. There is no other reason for having the Hamms Hall engine and transmission facility built (especially if the currency issue was as bad as they tried to claim when they ditched Rover); for retaining the Triumph brand; or for retaining the new model developments and continuing to work on them as was reported after the abandonment of Rover.
It is also possible that the events that took place were an exit-strategy that BMW had planned all along. It may have been one route out of many that they considered (ie, if Rover was a success, they might have continued with it.) who knows..