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ROVER-BMW: from shotgun marriage to quickie divorce

Author

Listed:
  • Tom Donnelly
  • David Morris
  • Kamel Mellahi

Abstract

This paper discusses the reasons why the German luxury car maker BMW purchased the ailing British volume car producer Rover/Land Rover and why it disposed of both after only six years. This merger went against the trend in the industry as normally it was volume producers that acquired luxury brands, but being vulnerable to potential predators, BMW sought size. The paper demonstrates how BMW failed to turn its UK protege round to the extent that Rover's downwards spiral was thought to threaten BMW's own long-term viability. The end result was that, under severe pressure from BMW's main directors, the company sold off its British subsidiaries with Rover being sold to Phoenix and Land Rover to Ford.

Suggested Citation

  • Tom Donnelly & David Morris & Kamel Mellahi, 2003. "ROVER-BMW: from shotgun marriage to quickie divorce," International Journal of Business Performance Management, Inderscience Enterprises Ltd, vol. 5(4), pages 302-315.
    • Handle: RePEc:ids:ijbpma:v:5:y:2003:i:4:p:302-315
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    Cited by:

    1. Nigel Berkeley & Tom Donnelly & David Morris & Martin Donnelly, 2005. "Industrial Restructuring and the State: the Case of MG Rover," Local Economy, London South Bank University, vol. 20(4), pages 360-371, November.

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