Fleet News

Acquisition 'part of globalisation challenge'

BMW'S £800 million acquisition of Rover in February 1994 was part of a long-term strategic move by the German manufacturer to face up to the challenges of increasing globalisation of the motor industry. BMW chairman Bernd Pischetsrieder said at the Motor Show: 'We knew we had to expand two-dimensionally.'

'The first was with products to take us into front-wheel-drive and four-wheel-drive vehicles on our way to achieving the second dimension of growing the total BMW business to face the challenges of increasing globalisation of the industry. We knew in the early 1990s that the successful car companies of the 21st century would cover all the significant market segments and all the world's key markets, but we did not see the BMW brand as being appropriate to these new product sectors.'

In his speech he made specific references to the new Rover 75, 'the existing strength of Land Rover', 'the added bonuses were the legendary Mini, MG for sports cars and a veritable treasure chest of other once famous names from the British motor industry held within the heritage of the company' and from 2003 Rolls-Royce. Pischetsrieder did not single out for specific mention either the Rover 200 or Rover 400 built at Longbridge.

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