Rover Launches New Car with Royal Philharmonic Concert Orchestra

Strategic Insights -

The BMW-owned Rover car company is set to launch its new Rover 75 car, a crucial model that could secure the future of its British workforce. Despite a significant slump in UK sales, with a 29% decline in the first five months of this year, Rover is pinning its recovery hopes on the new car. The Rover 75, which has been well-received by motoring writers, is being built at the company's Cowley plant in Oxford, replacing the top-of-the-range 600 and 800 models.

Key Takeaways:

  • Rover's UK sales have slumped by more than 29% in the first five months of this year, with the 100 model no longer being made and its 200 and 400 models about to get a new look.
  • The company has switched an extra 800 employees to Cowley to produce the new car, with the total workforce expected to reach 2,700 by July and production of the 75 reaching 1,660 cars a week, operating on two shifts.
  • By the end of 1999, production output is expected to be 2,800 cars a week.
  • Rover is aiming to sell 50,000 75s this year and 100,000 next year.
  • The new car will be covered by a three-year warranty, with on-the-road prices ranging from $19,530 to $25,630.
  • The launch of the new car will be marked by a 10-minute orchestral piece written and composed by Eurythmics rock star Dave Stewart, featuring car-horn music "played" by 75 of the new cars.
  • The BMW group has invested $700 million in developing the car, with the company's chairman, Werner Saemann, stating that up to 70% of cars will be exported to markets around the world.

Statistics:

  • Rover's UK sales decline: 29% in the first five months of this year.
  • Number of employees transferred to Cowley plant: 800.
  • Total workforce at Cowley plant by July: 2,700.
  • Weekly production of 75 cars: 1,660 (operating on two shifts).
  • End-of-year production output: 2,800 cars a week.
  • Target sales for 1999: 50,000.
  • Target sales for 2000: 100,000.

Sources:

  • "Rover puts faith in new model" (no date), The Times.
  • "What Car? Magazine" (1999).
  • Press conference statement from BMW chairman Werner Saemann (no date).