Business Case Studies, Brands & Branding and Private Labels Case Study, MG Rover, Longbridge factory

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Case Title:

MG Rover: The Fall of an Iconic Brand – The Blame Game Continues

Publication Year : 2005

Authors: Sujatha,T. Phani Madhav

Industry: Automobiles

Region:UK

Case Code: BBP0029

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
MG Rover was once Britain's biggest car manufacturer in terms of volume, producing more than half a million cars annually. Established in 1906, the company experienced many setbacks in the form of ownership changes, industrial relation problems, low production and financial constraints, which finally led to the downfall of the company. While some analysts held BMW, the owner of MG Rover between 1994 and 2000, responsible for the downfall, the others blamed the government for not rising to the situation on time when BMW sold the company to Phoenix Venture Holdings. The management of Phoenix Venture Holdings headed by ex-Chief Executive Officer of MG Rover, John Towers, faced criticism for utilising the funds available at MG Rover to fulfill their personal financial requirements.

Pedagogical Objectives:

  • To discuss the options available at MG Rover to avoid the fiasco.

Keywords : Rover Group; Longbridge factory; Ownership changes; Phoenix Venture Holdings; Job cuts; The Mini brand; Managing in Troubled Times Case Study; Bankruptcy; Labour problems; John Towers; Tony Blair; Shanghai Automotive Industry Corporation

Contents:

  • Rover: A Success Story
  • The Troubles Begin
  • The Alchemy Episode and Intensifying Troubles
  • The End of the Road?

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