Exclusive - BMW and Rover: should BMW sell?
Back in 1994, BMW's acquisition of Rover's car-making operations appeared to make good business sense. At a stroke, a major element of BMW's long term strategy for survival and growth was in place. The move was generally viewed as highly positive, taking BMW away from what was seen as an over-reliance on the relatively low-growth executive and luxury car segments of the car market. For Rover, starved of funding under its previous owner, much-needed funding for investment in new models would now be forthcoming. The company was also made available at what was widely viewed as an extremely attractive price. Win-win all round. Or so it seemed at the time.
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