Ford buys Rover nameplate

"We feel it is in interests of our Land Rover business to have the Rover brand. We are acquiring it and we're not looking to sell it. We believe it is a valuable asset for us"

That's what a Ford spokesman told Reuters concerning the company's decision to exercise its right to buy the Rover brand name from BMW. What the spokesman didn't say is that Ford was "scared to death" when it heard that Chinese automakers SAIC and Nanjing (they have both brought the rights to manufacture former MG Rover models), where in contact with BMW to buy the Rover nameplate. Why? Well, imagine a Chinese made Rover SUV reminiscent of a Land Rover model...

BMW reaches an agreement to sell the "Rover" brand name

According to a report from Automotive News, BMW has reached an agreement to sell the rights of the Rover brand name. Although there has been no leak concerning the company's name, it is speculated that the main candidates are two Chinese automakers, both of whom are under state control (!). Nanjing Automobile which acquired MG Rover assets and the sportscar brand MG, and Shanghai Automotive (SAIC) owner of design rights to two Rover models including the 75

The newspaper states that a spokesman for BMW confirmed a report in the German financial daily newspaper, Handelsblatt stating, "A binding agreement was made".

Although it seems like a done deal, BMW will need to obtain Ford's consent due to legal issues as the latter owns Land Rover -acquired from the BMW Group a few years ago. Basically, this means that Ford will give its consent only if the future owner of Rover's name strictly avoids any conspicuous connections with SUV vehicles.

I think that Ford should be very, very, very cautious with this one. Can you imagine the surprise on the face of a Ford's Group manager if he sees a Rover LT3 or a Rover Sport in the 2007 Shanghai Motor Show ?