Surprise! Ford buys Rover name from BMW
Ford informed BMW today that it would be exercising its right to buy the Rover name from the German automaker and also announced that it will not be putting it up for sale. The Detroit automaker purchased Land Rover from BMW in 2000 and has since had the option to buy the Rover name or at least first refusal rights if BMW tried to sell the name to a third party. Well, that's exactly what BMW tried to do and had reportedly arranged a deal already with Chinese automaker Shanghai Automotive Corp. (SAIC) for the Rover name. From the rubble of the MG Rover collapse, SAIC emerged with the design rights for a pair of Rover models, the Rover 25 and 75. Looks like they won't be calling them Rovers anymore. Why would Ford go out and spend more money when its North American operations are operating in the red? It looks to us like Ford is planning to sit on the Rover for a while. Clearly the automaker doesn't want the brand prestige of the Land Rover threatened by Chinese-built cars bearing the Rover name, and was left the choice of either buying the name now or allowing SAIC to scoop it up. Whether Ford will do anything with the Rover name in the future remains to be seen, but for now it will likely be put in a drawer and forgot about. However, with SAIC having invested millions of dollars in its quest to revive the Rover brand, Ford now has the Chinese automaker over a barrel. Though it claims it won't, Ford could end up selling the name to SAIC and turning a tidy profit.
[Source: Reuters]
Related posts:
Get a WordPress.com Blog
Reader Comments (Page 1 of 2)
Don dada 1:25PM (9/18/2006)
Ford got rid of thousands of employees to purchase a brand name that doesn't exist anymore. See how stupid American companies are and they wonder why they their operating in the red. This explains why the Ford GT was a waste along with the T-bird. Ford has no money to build a entirely new mini-van but has money for a brand name!!!! Ford shouldn't exist.
Reply
rwdmtparkingonly 1:35PM (9/18/2006)
It's not so dumb when SAIC would be selling "Earth Rovers" or "Ground Rovers" in a lot of Land Rover markets. Plus, now they have an appropriate brand to sell the x-type under.
Reply
Dr. Woo 1:40PM (9/18/2006)
As rwdmtparkingonly and Mr. Neff said, the potential for a Chinese brand to bastardize the "Rover" name in Land Rover markets to capitalize on the name would be devastating to Ford overall. It's far better this way.
Reply
Loren 1:42PM (9/18/2006)
Smart move, protect your brand. Oh and Don the Ford GT wasnt a flop like you say it was, it was the most profitable card that Ford made. It was also a limited production car as stated when it was brought out. Dont go boast about over seas companies either. Toyota is having quality issues now just as the big 3 did. Nissan is in a sales slump. There time will come. Would you be ok if someone was selling a product under your name? I dont think so.
Reply
Hamud 1:49PM (9/18/2006)
#1, Ford GT a waste??? Yeah, sure...
Ford doesen't need to build an entirely new mini-van, they have 2 brand new in Europe. Think a bit before saying so many BS.
Guess that move was a clever one, chinese Rover named cheap and unsafe cars wouldn't be any good for Ford.
Reply
Rob 1:59PM (9/18/2006)
er...land rover may be a luxury brand but reliable it is not. so why would ford be afraid of maintaining its "reputation"? what reputation i ask?
Reply
DJ 1:55PM (9/18/2006)
Maybe Ford is planning to sell the company to the Chinese.
"Here ya go, buy the Rover nameplate for $8 Billion and we'll throw in the rest of the company for free."
The Ford family walks into the sunset with their $2.4 billion in hand.....
Reply
Ryan 1:55PM (9/18/2006)
"This explains why the Ford GT was a waste along with the T-bird. Ford has no money to build a entirely new mini-van but has money for a brand name!!!! Ford shouldn't exist."
I CANNOT believe we are on a AUTO website and have to hear people complain about a Ford GT SUPERCAR because they don't have a minivan.
Fuck the van!!! One could say the GT has been more sucessfull in just image to the brand name alone, and that counts for ALOT.
Reply
Rob 2:00PM (9/18/2006)
Hamud, sure Ford might have two new minivans in Europe, but do they ever have enough common sense to bring them over here? NO...
and how do you know that the Chinese Rovers would have been cheap and unsafe? Quite an assumption there, if you ask me. There are plenty of companies in China that have already teamed up with American, German, and Japanese automakers to build their cars there...BMW, GM, etc.
Reply
mikomi 2:21PM (9/18/2006)
#9 (Rob)
"and how do you know that the Chinese Rovers would have been cheap and unsafe? Quite an assumption there, if you ask me. There are plenty of companies in China that have already teamed up with American, German, and Japanese automakers to build their cars there...BMW, GM, etc."
That's because the government forces- er.. mandates foregin auto manufacturers to partner with a local company if they are to be allowed to manufacture vehicles locally. AND the government taxes imported vehicles heavily enough so as to force- i mean encourage companies to partner up with a local company :P to manufacture vehicles in China.
Reply
DPC car videos 2:46PM (9/18/2006)
Ford will by all eventually.
Reply
Don dada 2:26PM (9/18/2006)
Thanks Rob. Obviously Hamud doesn't realize that Ford isn't bring the European mini-vans here to the states. Hamud your the one that is bullshit.
Reply
Hamud 2:33PM (9/18/2006)
#9, I've seen many crash tests of chinese cars and one thing i can tell you for sure, i'll never want to be into one of those cars.
But, if you are talking about cars made by chinese companies teamed up with trusted car makers, then i might agree with you.
Reply
Hamud 2:54PM (9/18/2006)
PS. About the mini-vans, i know they aren't taking them to north-america, but in case they wanted to, they didn't need to build a new one. That's what i meant.
Don, don't take it personal, but your first post was really BS.
Reply
Richard Warren 3:16PM (9/18/2006)
Ford and GM in talks! Ford buys Rover name! Same day!
Laughable.
Reply
Craig 4:02PM (9/18/2006)
I think this is a smart move. Land Rover is a LUXURY brand. The Chinese brand will sell cheap, cheap, economy cars. By letting them have the name, it would only dilute the LUXURY image of Land Rover with the CHEAP image of the owuld be Chinese Rover...
Reply
JON 8:35PM (9/18/2006)
Didn't Rover score dead last on initial quality surveys?
Reply
Ford will never learn 7:54PM (9/18/2006)
Instead of shutting down land rover, ford is investing more. Vow! its time for suicide!
Reply
FGT 8:40PM (9/18/2006)
The Ford GT was not and will never be a waste of Ford's money. The Ford GT, while out of production is an amazing achievement for Ford. It's by far the best looking car ever made, then on top you add the performance which blows the doors off nearly anything except for the rare Enzo, CGT, MacF1 and the Veyron. It costs less tha half of what those others cost and still manages to be better than them all. Hopefully, Ford learned from the Ford GT and maybe they can apply the knowledge to the rest of the lineup.
Reply
UltraP 9:01PM (9/18/2006)
The Ford GT may not be a waste of Ford's money, but it sure is a waste of every owners' money. Do you watch Top Gear? Besides the fact that this car gets "an amazing" 4 mpg (yes, four mpg), you will need a tow truck to accompany you anywhere you go because the car won't start half the time.
This all doesn't come from me, it comes from Jeremy Clarkson, a huge fan and owner of the Ford GT.
Back on topic, if this piece of news really is true, it's just another proof the infinite stupidity of Ford's management. The chinese cars are coming, Rover or not. They'll initially have toy-car build quality, I have seen some crash test videos and they fold like paper...but if they're cheap enough, they may just be the only vehicles the fired U.S. autoworkers will be able to afford.
Reply