Case study BMW and Rover

1. What were the reasons for the BMW/Rover acquisition? The automotive industry in the early 1990's when the acquisition took place was influenced by a growing trend towards consolidation. A report published by the Economist Intelligence Unit concluded that by the year 2000, the car industry would be dominated by a group of only five global manufacturers. BMW was like Rover too small to survive on its own as a manufacturer. This situation forced the company …

…were not assumed to happen. BMW relied too strongly on their long-term strategy and had faith in increasing growth, a good market situation and stable exchange rates. On the other hand a lack of communication within the group can be seen insofar that BMW did not communicate its objectives to Rover and missed to gain control in the beginning and later on to adapt Rover employees to their corporate culture in terms of individual responsibility.