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Industrial Restructuring and the State: the Case of MG Rover

Author

Listed:
  • Nigel Berkeley

    (Centre for Local Economic Development, Coventry University, UK)

  • Tom Donnelly

    (Centre for Local Economic Development, Coventry University, UK)

  • David Morris

    (Centre for Local Economic Development, Coventry University, UK)

  • Martin Donnelly

    (Centre for Local Economic Development, Coventry University, UK)

Abstract

MG Rover was the final name by which the British Leyland Motor Corporation (BLMC) became known. BLMC had been formed in 1968 upon a government initiative to strengthen the UK's automotive industry so that it could compete effectively with the American and other European multinationals in international markets. Within six years BLMC teetered on bankruptcy and was all but nationalised. This paper traces the ongoing secular decline of BLMC through its various stages down to the eventual closure of the Longbridge plant in 2005. In particular it will look at key themes such as investment, output, product development and market failure. In particular, there will be examination of the role of the various owners of Rover such as British Aerospace, BMW and the Phoenix Consortium as well as the part played by the UK government in the company's eventual downfall.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:loceco:v:20:y:2005:i:4:p:360-371
    DOI: 10.1080/02690940500286594
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    References listed on IDEAS

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    1. 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.
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