Unsuccessful Rover Bidder Remains Committed To UK Production
Published: 11th August 2005
Professor Krish Bhaskar, whose Triple A consortium was unsuccessful in acquiring MG Rover Group, has confirmed he remains committed to establishing a UK manufacturing base.
Triple A was one of the first bidders to express interest in the beleaguered West Midlands’ manufacturer, following MG Rover’s collapse into administration earlier this year. In June, Triple A announced they had joined forces with West Midlands’ haulier Martyn Moseley, who subsequently tabled an unsuccessful £90m bid for the company. But following MG Rover’s sale to China’s Nanjing Automotive, Prof. Bhaskar has withdrawn his support for the Moseley led bid.
‘’The split between Martyn and myself has been amicable. I wish Martyn and his team every future success.’’ said Prof. Bhaskar.
‘’PwC’s decision to sell MG Rover to Nanjing, and the subsequent decision by Nanjing to choose the GB Sports Car Company as its preferred UK partner, changed everything. There was clearly little sense from Triple A’s perspective, in continuing to bid for a company which had already been sold.’’
Yet despite recent developments at Longbridge, Prof. Bhaskar is confident of establishing a large UK automotive manufacturing operation, together with an international distribution and dealer network.
‘’We were naturally disappointed not to be successful in our bid for Longbridge. However, we congratulate Nanjing and the GB Sports Car Company on their acquisition of the plant and will be watching their future ambitions with interest. In principle, we would be happy to provide any required support or assistance at some point in the future.’’
‘’However, MG Rover is not the only show in town. The UK could be a great place to make cars, as I am sure that MG Rover’s new owners will soon discover. We are currently looking at a number of additional major opportunities right across the UK. These include established manufacturing operations as well as greenfield sites for efficient, flexible, large scale production. Ultimately we would expect to create several thousand jobs and establish a major force in car design, development and engineering. I am confident that this will be one of the biggest investments ever in the British motor industry.’’
However, despite having both favourable exchange rates and a positive business climate compared with France and Germany, UK car production has declined over recent years. Prof. Bhaskar states that this is one of the drivers behind Triple A, together with a determination to reverse the trend toward the UK losing the strategic ability to design and develop new cars.
Prof. Bhaskar will not be drawn on precisely which opportunities are currently being considered. Neither will he confirm, nor deny, an interest in acquiring legacy brands from the heyday of the British motor industry. However, Prof. Bhaskar highlighted the fruits of extensive market research undertaken in the USA by Triple A, which researched the appeal of legacy brands amongst the car buying public.
‘’Great British automotive brands such as Austin Healey, still continue to enjoy surprisingly high levels of recognition and appreciation in North America. We found this to be the case even amongst younger consumers, which initially surprised us. In part, I suspect that this is due to the continued showing of cult English TV programmes across the Atlantic. In part, it is also due to the efforts of enthusiasts’ groups, who have ensured the brands remain highly visible and highly cherished, decades after the last cars rolled off the production lines.’’
Yet, despite remaining non-committal on the acquisition of legacy brands, Prof. Bhaskar does admit to having had discussions with a number of parties, including discussions focused upon Peugeot’s Ryton plant in Coventry, which is widely expected to close within the next 2 years.
‘’In principle, Triple A is happy to talk to and to work with anyone, be they in Longbridge, the West Midlands or indeed anywhere else in the UK. As well as being able to bring considerable amounts of money to any venture, through established strategic partnerships, we can provide full project management and support.’’
Consistent with a desire to work with other interested parties, and despite withdrawing support from Martyn Moseley’s venture, Prof. Bhaskar still hopes that it may be possible to revive talks with some other unsuccessful bidders for MG Rover.
‘’I have a high regard for both David James and Barrie Wills of the Project Kimber consortium. It would be interesting to explore the feasibility of creating a NUMMI type environment at Longbridge or indeed any other location, where we could share a paint plant and perhaps other core production facilities. In principle, I would be happy to concentrate upon the development of SUVs and ‘green’ vehicles, whilst Barrie and David could concentrate upon sports cars. The possibilities for co-operation are potentially limitless.’’ said Prof. Bhaskar.
Prior to taking on a leadership role within the Triple A Consortium, Prof. Bhaskar established MIRU and 1Automotive - an automotive forecasting, data and intelligence consultancy.
However, Prof. Bhaskar’s involvement in the British motor industry can be traced back decades, to the British Leyland era, when he produced an alternative to the much derided Ryder Report. During subsequent years, he has worked closely on a number of projects with key global players within the automotive sector including General Motors, Ford, Jaguar, DaimlerChrysler, Renault, Fiat and Volkswagen Group.
