April 21, 2005

Rover: repercussions continue

by brian_turner

Repercussions from the failure of Rover to avoid going into administration continue, as 28,000 workers reliant on the company attempt to save their jobs.

Hopes that the Shanghai Automotive Industry Corporation (SAIC) would bail out the company appear to be fading, as news has emerged that SAIC already own the rights to produce the Rover 25 and Rover 75 models.

The intellectual rights to producing these models was apparently nogetiated in 2004.

Although it remains uncertain as to whether SAIC can still call these cars “Rovers”, as the trademark still belongs to BMW, SAIC has allegedly been chasing up parts suppliers for a Chinese production line for the models.

This leads to the possibility of Rover cars being manufactured in China, but possibly under a different branding.

Meanwhile, as the industry adjusts to the news of the Rover collapse, Jaguar has announced that it is now scaling back production of its X-type model.

The company announced that it is aiming to produce lower volume for higher revenues in the higher class markets.

Jaguar is owned by Ford, which has already been forced to restructure after disappointing profits on the previous tax year.

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