The Ulricianum Times

Speculation about the separation
of BMW and Rover

by Maraike Osterkamp und Karina Schild

In a statement from BMW it says that the Rover group is still making huge losses after six years in German hands.

For this reason the rumours about the separation of BMW and Rover increases in the business world.

A German newspaper reported that BMW wants to sell most of its Rover subsidiary. According to the newspaper BMW will keep Land Rover and Mini, but has already found a buyer – not an established car manufacturer – for the rest of Rover. But the Department of Trade and Industry described the German newspaper report as “speculation”.

The spokesman for Rover said there will be no comment until the board meeting on Thursday, held in Munich, where the sale of Rover’s British factories will be discussed.

BMW will held a news conference regarding its plans for Rover on Friday.

Unions have warned that 50,000 jobs would be lost throughout the West Midlands if Longbridge closed.

The national officer of the Transport and General Workers Union, Tony Woodly, said he was seeking urgent talks with the company, but he believes it makes no sense for BMW to sell Rover.

The Birmingham Chamber of Commerce and Industry said, if the rumours about the selling of Rover are true, it would be a “devastating” blow for the West Midlands. But BMW officials had personally assured the Birmingham Northfield MP Richard Burden that they were committed to Longbridge “for a long term”, and he found it astonishing that the company was not denying the reports. So the fears that thousands of Rover jobs could be at risk if the sale goes ahead are still up to date. On the news conference on Friday BMW will hopefully clear the charges.

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