New Brand Of Car Retailer Profits From Rover And MG Appeal
Published: 25th November 2004
MG Rover now has 1,000 retail outlets in Europe and 1,250 worldwide.
Since changes in block exemption rules have allowed car dealers to sell more than one brand from a single site, MG Rover has been highly successful in attracting the new multi-franchise operations.
"Rover and MG are niche brands, of high quality and strong customer appeal, so they harmonize well with other makes in the showroom, and they cover 80 per cent of passenger car segments. Dealers are also attracted by the brands’ historic customer base, which is large and brings valuable income from servicing and repairs, and provides lucrative marketing opportunities," said Rod Ramsay, director of worldwide sales, MG Rover Group.
Attracting dealers most suited to the Rover and MG brand qualities is a key strategy, as MG Rover rationalises the network it inherited. When the business changed hands in May 2000, many dealers were left with mixed interests; BMW cars, Mini, Rover, MG, Land Rover and Jaguar all competed for showroom space. In many markets MG Rover has responded by changing more than half of its dealer network.
