Volkswagen Emerges as Favourite to Take Over BMW in Potential Motor Industry Shake-Up

Strategic Insights -

Volkswagen has emerged as a favourite to take over BMW, a move that could see the German car company acquire both the Mini and the Rolls-Royce. The Quandt family, which owns nearly half of BMW, is ready to sell the company for up to Pounds 20billion after sustaining huge losses during its six-year ownership of Rover. This move would be ironic, as BMW bought Rover in a bid to become big enough to stay independent. The other main candidate to buy BMW is Ford, which recently bought Land Rover from the German firm.

Key Takeaways:

  • Volkswagen has emerged as a favourite to take over BMW, potentially acquiring both the Mini and the Rolls-Royce.
  • The Quandt family, which owns nearly half of BMW, is ready to sell the company for up to Pounds 20billion.
  • BMW's purchase of Rover was intended to make the company independent, but it has instead suffered losses.
  • Ford is also a candidate to buy BMW and would potentially sell Rolls-Royce to Volkswagen.
  • The Mini has been in production for over 40 years and is due to be replaced by a new model at Cowley, Oxford, next year.
  • A sale of BMW to Ford or Volkswagen would not rescue Longbridge, which is still likely to be sold to Alchemy.
  • The Quandt family plans to sell BMW, but will consider a bid from a consortium led by John Towers, a former Rover managing director.
  • Volkswagen already owns Bentley and could potentially absorb Rolls-Royce into its portfolio.

Statistics:

  • Volkswagen is favourite to take over BMW, with the Quandt family ready to sell for up to Pounds 20billion.
  • BMW has lost money during its six-year ownership of Rover.
  • The new Mini is due to come into production at Cowley, Oxford, next year, replacing the current Mini.
  • Longbridge is likely to be sold to Alchemy, despite the potential sale of BMW to Ford or Volkswagen.
  • The Quandt family owns nearly half of BMW.
  • Ford has recently bought Land Rover from the German firm.

Sources:

  • The Sunday Times, Copyright (C) 2000, "Quandt plans to sell BMW Business, page 1"