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BMW, Chrysler and Rover

To: MGDIGEST <mgs@Autox.Team.Net>
Subject: BMW, Chrysler and Rover
From: David Knowles <dknowles@uk.b-r.com>
Date: Tue, 9 Sep 1997 10:07:00 +0100
Larry Hoy said:

>>>Chrysler CEO Robert Eaton has heard the rumors and wants to set the
record straight.

"There has never been any discussion or plan, and I don't expect a
merger
of any kind," the frank-speaking CEO said Friday at a launch party here
for the new Dodge Durango sport-utility vehicle.

"We have no plans to buy BMW or Fiat -- not a plant, not a segment, not
a
nothing."

The latest round of rumors surrounding the No. 3 automaker surfaced last
week in London, when a British automotive enthusiast magazine suggested
that Chrysler was considering buying the carmaking operations of Rover
Group Ltd.

There's another reason for the BMW rumor:

Chrysler announced in October 1996 it would form a joint venture with
BMW
to build an engine plant in Brazil. The plant will open as soon as 1998.
Eaton and other Chrysler executives said Friday that they have regular
meetings with BMW officials to discuss progress in Brazil, but the
meetings have not escalated to talks of mergers.

"We have never talked beyond the South American plant," Eaton said.<<<

I received a faxed press release from Rover, also denying any truth in
the rumours. I have yet to see any comment from BMW however - it would
be particularly interesting to know what has been said in Spartanburg.

The question remains - if the Quandt family (BMW's owners) DID decide to
sell, WHO would buy?

Final bit of "news" - look out for pictures of the new Mini, just
unveiled at Frankfurt.

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