Automotive Industry
Industry: Email Alert RSS FeedMG Rover must drop low-end to live.
Automotive News Europe, December, 2001 by Wright, Chris
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MG Rover must cut production volume and concentrate on high-end niche cars to survive, industry analysts say.
The British carmaker will cut annual production by one-third to 120,000 cars because it failed to negotiate lower prices from suppliers, analysts said.
Suppliers are nervous about the future of the company, said analyst Peter Schmidt of Auto Industry Data in Birmingham, England.
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``The component industry is getting nervous in terms of MG Rover going for volumes of between 150,000 and 200,000," he said. ``It just cannot compete on the same terms as other volume ...
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