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MG Rover on the Brink of Bankruptcy

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Khatir Soltani

In the mid '90s, BMW AG purchased Rover and its associated divisions. Dubbed "The English Patient" by the German media

Since being separated from BMW, MG Rover's four years under PVH have been rough. (Photo: MG Rover)
for the brand's ill financial health, BMW vastly revamped the product line, reinventing MINI, Land Rover's top-line Range Rover, and the front-wheel drive Rover 75 - in the eyes of the media, the best Rover ever made. Eventually, BMW saw its British half for what it was, a money pit, and sold Land Rover to Ford, and MG Rover back to its original owners, Phoenix Venture Holdings (PVH) for £10, five years ago. It kept the extremely popular MINI brand name for itself.

Since being separated from its German associates, MG Rover's four years under PVH have been rough. Initially, there was some hope that management could return the company to its

Time is running out for the now 100 year-old Rover brand and 80-plus year-old MG nameplate. (Photo: MG Rover)
former glory. However, irrational decision-making, including the purchase of the Mangusta sports car from Qvale/DeTomaso and the partnership with India's Tata group, resulted in over-priced, left-field cars. Instead of engineering new models to replace its rapidly aging line, it tried to expand into niche areas and cover its behind by offering minor facelifts - a cost-friendly solution, but a shot in the foot nonetheless.

While the now 100 year-old Rover brand and 80-plus year-old MG nameplate have faced impending doom for four years, the spinning blades of the fan are seemingly in sight thanks to a series of events which started this past Thursday.

Khatir Soltani
Khatir Soltani
Automotive expert
  • Over 8 years experience as a car reviewer
  • Over 50 test drives in the last year
  • Involved in discussions with virtually every auto manufacturer in Canada