The crisis-hit Rover car company received a huge boost today with a sharp
acceleration in its April sales figures.
The company sold more than twice as many cars than in the same month last
year, with only Ford achieving higher figures.
In contrast, Rover's German owner BMW, which is seeking the break-up of the
company, had a torrid time last month - with sales dipping more than 38%
compared with April 1999.
The heartening news for Rover came as its former chief, John Towers, met
Trade and Industry Secretary Stephen Byers in London to update the minister
on the progress of his rescue plan for Rover.
Negotiations between BMW and the Phoenix consortium bidding to buy Rover were
continuing and likely to go on over the weekend.
By selling 22,665 vehicles last month, Rover took a 13.48% share of the April
2000 market - more than twice the share it achieved in March 2000.
Special offers helped push the Rover 25 to the top of the April 2000
bestsellers' table - the first time a Rover vehicle has been top since
December 1995.
The Rover 75, the company's top-of-the-range model, also sold well, coming
fifth in the top-sellers' list.
"In April we introduced strong offers to assure our customers during this
period of ownership uncertainty," said Rover UK managing director John
Parkinson.
"The response has been phenomenal and we are grateful for the support and
loyalty expressed, in convincing fashion, by the British public to Rover."
Sir Ken Jackson, general secretary of the Amalgamated Engineering and
Electrical Union, said: "This could not have come at a better time for Rover.
It shows there is still a future for the company.
BMW sold 3,438 cars in April 2000 and took a 2.04% share of the market. This
compared with its 3.71% share of the market in March 2000 and with a 3.06%
share in April 1999.
In total, new car sales last month reached 168,200 - an 8.1% fall on the
April 1999 figure, the Society of Motor Manufacturers and Traders said.
A DTI spokesman said that Mr Towers had given a "confidential briefing" to
the Government on progress being made in the negotiations between Phoenix and
BMW.
He went on: "The Phoenix Group is having further negotiations with BMW on a
number of outstanding issues. We shall be remaining in close contact with the
Phoenix Group over the next few days.
"John Towers did go through the financial situation but did not make a formal
request for government financial assistance."
Mr Towers said tonight that he hoped to make progress over the weekend during
further talks with BMW.
"We have had a good series of talks with BMW. Those talks will continue over
the weekend and we do hope for further progress.
"The particular matter of financial backing for the consortium has been
outlined to BMW and I am pleased to say that this has been well received."
Talks between the Towers team and BMW started on Tuesday and are likely to
continue for several days.
BMW has said it will close Rover unless a deal can be reached to sell the
British carmaker by the end of the month.
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