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ots Ad hoc-Service: BMW AG
BMW sells Rover Cars to Phoenix Negotiations successfully concluded and contracts signed
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Munich (ots Ad hoc-Service) -
BMW Group Corporate Communications Media Information
The successful sale of Rover Cars to the Phoenix Consortium has prevented the closure of the Rover plant in Birmingham. This is the result of the negotiations between the BMW Group and the Phoenix Consortium led by John Towers that were successfully concluded this morning. Prof. Dr.-Ing. Joachim Milberg, Chairman of the Board of Management of the BMW Group said: "After intense negotiations, we have managed to find a buyer for Rover whose aim is to continue to run Rover and who will therefore prevent the loss of thousands of jobs in the Rover plant in Birmingham, in the supplier industry and in the retail business."
The BMW Group and Phoenix Consortium signed and completed the purchase contracts in London today. The symbolic purchase price is 10 GBP. Phoenix will be taking responsibility for the development, production and distribution of Rover Cars. In addition, Phoenix will aquire the MG brand and other Heritage brands. Professor Milberg: "Rover customers can be certain that they will continue to receive the expected high quality of customer service in the future too."
The Phoenix Consortium will take over production in Birmingham of the Rover 25 and 45, the MGF sports car and the current Mini, until the start of production of the new Mini. Furthermore, it was agreed to shift the production of the Rover 75 from Oxford to the Birmingham plant. Phoenix plans to start production of the Rover 75 Estate at a later point in time.
The BMW Board has thus taken the first important step towards implementing the reorientation of the company.
On 16 March 2000, the Supervisory Board of BMW AG approved the Board of Managements resolution to withdraw from Rover. To avoid a closure, the sale of Rover always took first priority for the BMW Group. After negotiations with what was then the only interested party, Alchemy Partners, had collapsed because of new demands that were unreasonable, negotiations with the Phoenix Concortium, which had been formed in the meantime, were started, these successfully concluded today. As already announced the BMW Group will be investing in production of the new Mini in Oxford rather than in Birmingham. The new Mini will be launched in the early summer of 2001. The completion of the new BMW Group engine plant in Hams Hall in the Midlands, UK, will proceed as planned.
For questions please contact:
Jürg Dinner, Economic and Corporate Affairs, Business Communications Telephone: (+49 89) 382-24118, Fax: (+49 89) 382- 24418
Axel Obermüller, Economic and Corporate Affairs Telephone: (+49 89) 382-22332, Fax: (+49 89) 382-29756
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