Rover unveils plans for prosperous New Year

Car giant Rover today unveiled plans to appoint more dealers in the New Year and signalled price cuts and product improvements in a bid to reverse disappointing sales.

The British firm denied it was “beleaguered or embattled” despite admitting sales this year will be below 120,000, the worst for a decade.

Rod Ramsay, managing director of sales and marketing for the MG Rover group, said: “It is not a result I want to see repeated in 2005. We are determined to increase our sales.”

The firm said its plan to link up with China’s biggest auto manufacturer was on track for the New Year and revealed work was already underway on a new medium-sized car and another model.

The Shanghai Automotive Industry Corporation will reportedly receive 70% of the business in return for pumping in more than £1bn (€1.44bn).

Mr Ramsay admitted MG Rover faced a challenge over the next few months to sell cars ahead of the new models and enhanced equipment levels which will be launched in 2005.

He conceded that the company had suffered from a lack of confidence this year, which will see sales fall to between 115,000 and 120,000 – around 25,000 less than last year.

An additional 30 sales outlets will be in place in Britain next year and an extra 100 dealers will be appointed across Europe, the firm announced.

The City Rover will be launched in Europe in the first half of 2005. The car will have more specifications but will be cheaper, company officials revealed.

New versions of Rover’s Streetwise and 45 models will also be launched and MG Rover is predicting higher sales across Europe.