Fleet News

Alchemy: we'll succeed where BMW could not

ROVER'S new owner, Alchemy Partners, has outlined its vision for the company's future and why it expects to succeed where BMW failed. At the launch of the MG Car Company, which will run the loss-making manufacturer, Alchemy boss Jon Moulton said the firm will enter a new era of car making, using outside suppliers for parts for new vehicles to cut development costs, while following the example set by Lotus of using composites and aluminium to cut costs.

Moulton said: 'BMW's problem is that it was not big enough. To begin a new steel car would take hundreds of millions of pounds in investment and we have no intention of competing in that market. 'The MG Car Company will be synonymous with British technology and manufacturing know-how at its best, producing cars which are sought after in the medium volume segment of the market. It will be a responsible custodian of the MG brand and entire current Rover range, investing in and taking its products to new levels of desirability.'

To keep costs to a minimum, new equipment, including gearboxes and engines, will be bought in from outside suppliers. Moulton revealed that Mini production will stop in the autumn and sales of new vehicles will finish by December. Following a check on inventory, Moulton revealed Rover had enough stock to supply the market for five months, which would have to be moved, with price cuts not being ruled out. The firm has given itself six weeks to develop a strategy for the future, including the appointment of a team to run MG Car Company - names have not yet been released.

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