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Ford’s purchase of Rover name may quell SAIC’s plans

Viknesh Vijayenthiran

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Ford’s purchase of Rover name may quell SAIC’s plans

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Ford’s recent purchase of the Rover nameplate from BMW is likely to disappoint Chinese car maker, SAIC Motor Corp, who owns the technology for the Rover 75 and 25 vehicles. SAIC, who hopes to become a dominant global player, had wanted to sell cars using the established Rover brand. Ford’s move has now quashed any chances of that happening and may have put SAIC’s $1.71 billion investment in jeopardy.

When Ford bought the Land Rover brand from BMW, back in 2000, it also acquired the right to buy the Rover name. On Tuesday it exercised that right, however, this news will not completely devastate SAIC. The company has already established several joint-ventures with both GM and Volkswagen, and is about to start production of its own brand of cars. SAIC expects to sell up to 45,000 vehicles in Europe alone next year. The task made all the more difficult without a popular brand to sell vehicles under. The Chinese company will have to invest further in its advertising and promotions to be successful in overseas markets.

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Comment (1)

By Terry Posted: 9/21/2006 2:42am PDT

The Chinese car maker still has to prove a lot in order to gain worldwide dominance. Some are also optimistic that whatever will be Ford's decision, it will have a positive outcome on the part of the ailing automaker.

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