Sign in Subscribe
Transportation equipment industry

Embattled Secretary of State Criticizes BMW Over Lack of Transparency in Rover Break-Up

Strategic Insights

— 2 min read

Stephen Byers, the Secretary of State for Trade and Industry, expressed "anger" at BMW's lack of transparency in keeping him in the dark about the break-up of Rover, preventing the UK government from helping to rescue the British car-maker. During a heated questioning by the Commons Trade and Industry Select Committee, Mr Byers criticized the German parent company's behavior, accusing its senior executives of giving "inaccurate" accounts of their dealings with him and pretending it was "business as usual" while plotting the sale of Rover and Land Rover. The Prime Minister, Tony Blair, came to the defense of Mr Byers, dismissing Tory leader William Hague's allegations of "doctoring and denial" as "absolute nonsense."

Key Takeaways:

  • Stephen Byers expressed "anger" at BMW's lack of transparency in keeping him in the dark about the break-up of Rover, preventing the UK government from helping to rescue the British car-maker.
  • The Secretary of State for Trade and Industry accused BMW's senior executives of giving "inaccurate" accounts of their dealings with him and pretending it was "business as usual" while plotting the sale of Rover and Land Rover.
  • The Chairman of Rover, Professor Werner Samann, met with Stephen Byers just six days before BMW announced the Rover break-up, giving no inkling of what was afoot.
  • An internal memo to all Rover associates sought to reassure the workforce that their jobs were secure, despite the fact that management had been in negotiation with Alchemy to buy Longbridge for about four months.
  • BMW expressed its "total commitment" to Rover's 18,000 workers just a month before the decision to abandon it, but ultimately sold the company to Alchemy.
  • The Prime Minister, Tony Blair, defended Mr Byers, claiming he had given the "fullest possible account" of talks with BMW and dismissing Tory leader William Hague's allegations of "doctoring and denial" as "absolute nonsense."

Statistics:

  • 18,000: The number of workers employed by Rover at the time of the break-up.
  • 1 month: The amount of time before BMW abandoned Rover's Longbridge plant.
  • 4 months: The amount of time that BMW's management had been in negotiation with Alchemy to buy Longbridge before sending out a reassuring letter to the workforce.
  • 1.5 billion: The proposed cost of transforming the Longbridge plant.
  • 6 days: The amount of time between Professor Samann's meeting with Stephen Byers and BMW's announcement of the Rover break-up.

Sources:

  • "BMW's commitment to Rover and to plant Birmingham remains total and we are pressing for an early decision on state aid so that the new medium car programme can be implemented and the £1.5bn transformation of the plant can get under way." - AK5 Corporate Communications company memo to all Rover associates.
  • "There was no indication, no hint, that BMW was considering breaking up Rover and selling Longbridge to Alchemy," - Stephen Byers, Secretary of State for Trade and Industry.

Read more