BUSINESSWEEK ONLINE : FEBRUARY 22, 1999 ISSUE
[an error occurred while processing this directive] [an error occurred while processing this directive]
INTERNATIONAL -- EUROPEAN BUSINESS How Rover Sideswiped BMW... -- After paying $1.2 billion for Rover in 1994, BMW failed to control costs tightly and speed up model changes. -- The pound surged in 1998, hitting Rover's exports to Europe and helping competitors in the British market. -- As losses mounted, management squabbled over strategy, infuriating shareholders. ...And How Milberg Could Help It Recover -- Reverse losses in the midsize segment. BMW could introduce a new Rover model, share a Rover platform with an outside partner, take the BMW brand downmarket, or dump the segment and close the Longbridge plant. -- Agree with Rover's union to cut 2,500 jobs, work flexible hours, and slash costs by $245 million per year. -- Pare costs with a new joint purchasing team and explore more synergies, such as the new engine plant that will supply BMW and Rover after 2000. DATA: BUSINESS WEEK _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _					Return to main story INTERACT E-Mail to Business Week Online

Copyright 1999, by The McGraw-Hill Companies Inc. All rights reserved. Terms of Use   Privacy Policy