Rover: Emerging from the ashes

Rover 75: Critical to Rover's prospects

Not many companies can claim that an annual loss of £254 million represents a magnificent achievement.

But the MG Rover Group is rather an unusual company. Last year, it came within a few days of total collapse, and many analysts gave it little chance of survival when it was taken over by the Birmingham-based Phoenix Consortium.

Yet the firm is still battling on, and issued a bullish assessment of its prospects, including a prediction that it will be making profits by next year.

Workforce commitment is crucial for quality

One huge problem remains: MG Rover need brand-new models - not just new versions of existing cars. The cost of developing them could be tough for a company of comparatively small resources.

Surviving the chop

Little more than a year ago, Frank Hogbin the director of a Rover showroom, was not sure whether it would stay in business.

But it did and he says sales are up almost 70%.

Rover has cut costs, is aiming to produce around 200,000 cars a year and has already unveilled new models, including new performance MG versions of its Rover range.

Busy period

It has been a busy fourteen months for the new owners of MG Rover.

• MG returned to the 24 hour Le Mans race

• It acquired the engine and gearbox business Powertrain at Longbridge

• It bought the Italian Qvale to make a new niche market sports car

Hard times

It's been a tough time across the board for car manufacturing in Britain with much concern over the UK position regarding the euro and the strength of the pound.

The company says it's aiming to have new small and medium size models in production by 2004 but coming up with new designs or platforms as they're known in the trade doesn't come cheap.

Steven Wrightman - the European motor analyst at Merryl Lynch - says in this industry size does matter and it will be difficult for MG Rover to continue alone.