The Declining British Car Industry – A Case Study of Rover Group

The British car manufacturing industry was one with many international well-known automotive brands. However, its recent development seems to show the once shining star has lost some of its glory. British car manufacturers have experienced dramatic changes in recent years as global competitors have successfully produced superior products with beneficial external factors such as labour and economic conditions. They face severe challenges in all aspects of business operation, such as production, marketing, and management. This paper takes Rover Group, one of the best British car brands, as the main body for research. By studying this remarkable British car manufacturer, we can have a better understanding of its local and foreign experience. For example, the partnership with local parts suppliers (Mayflower), the strategic alliance (Honda) and take-overs (BMW) with foreign firms are all discussed in the paper in order to find out its survival instinct in the demanding global market. 2 1