MG Rover made a loss of £254 million ($US360 million) for the eight months ended 31 December 2001 on a turnover of £961 million ($US1.36 million).

But the company says that was less than half the operating loss incurred in the full year 1999 – around £780 million – and “represents a significant improvement in the underlying business performance”.

“2000 performance
was better than our business plan in
all respects”

– Kevin Howe

In a statement, MG Rover said that the overall year-end cash position of £329 million was ahead of its business plan and included the £200 million long term loan from BMW.

The achievement of 111,800 retail sales was ahead of the business plan by 900 units and the level of sales in the most profitable markets and customer channels was higher than planned.

“Our 2000 performance was better than our business plan in all respects and represents a major step towards our target of overall business profitability,” said chief executive Kevin Howe.

“During the year we have made progress in many areas. We reduced by more than half the operating loss of the business, consolidated our production on the Longbridge site, entered new overseas markets and introduced five new models to our existing MG and Rover product portfolio.”

“We are currently working to a calendarised operational budget for the year 2001 which, when achieved, will deliver another major step towards our objective of having a profitable business in the year 2002.

“In financial terms we plan to reduce our annual loss for 2001 to significantly below the figure we have reported today.”

To view related research reports, please follow the links below:-

The world’s car manufacturers: A financial and operating review

Automotive regional report: Western Europe

MG Rover Corporate Profile