I wouldn't mind betting that the additional depreciation that happened overnight due to this announcement is far, far more than the cost of a third party warranty.
Agreed
Which would make it a very good time to buy a nearly new Rover!
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Not quite so sure, longer term residuals are also going to suffer.
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I wonder how big an issue parts/warranty really is.
There must be an awful lot of generic parts/switches/assemblies under the skin of a Rover as you can buy a lot of sub assemblies off the shelf from some suppliers - ABS, airbag, windows, PAS, instrument packs, engine ancillaries etc.
The difficult area is body parts, chassis platform, drivetrain stuff, but if there are hundreds of thousands of people out there with MGs and Rovers with penty of life in then I'd view that as a big potential market. So it's not difficult to see parts makers/suppliers making offers to the administrators for tools/stamps etc. That or someone importing them from a certain Chinese company that owns the rights...
Warranties - well, worst case scenario is that you've got to buy a third party warranty. And since many Rover dealers will be part of dealer groups, won't theses groups want to find ways of hanging on to valuable service/repair revenue?
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There are hundreds of thousands of people with MGs and Rovers. Did they sell that many in recent years?
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Use your loaf - how long have the 200/25, 40045, 75, TF been in production and how many countries have they exported to? Then do the maths.
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Use your loaf - how long have the 200/25, 40045, 75, TF been in production and how many countries have they exported to? Then do the maths.
If your counting exported models, fair enough (I was referring specifically to the home market). However, are exported cars likely to provide many spares for the home market? In the long term, I suspect spare parts will be a difficult problem.
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Well, they sold me an MGf. If as many things go wrong as with mine when it was under warranty, it will costs owners a packet. However, mine never failed to start, never leaked and was a lovely ride.
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Parts will become a problem quicker than you think. Not service parts, but the smaller and slow moving items like switches and trim.
Rover operates JIT and parts stocks will be minimal. Some suppliers will go out of business altogether and others will 'move on' and not be interested in producing a few hundred of some low value item each year. Expect difficulties....
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As a matter of interest, has anyone got figures for total Rover sales, in the UK, in the last ten years?
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Press Release
8 April 2005
MG Rover Situation
XPart seeks to reassure MG Rover customers on parts availability
Desford, UK ? 8 April 2005 ? XPart emphasises that it will continue the partnership with its customers, the MG Rover and Tata (UK & Ireland) Dealer Networks, and assures them, and owners of MG Rover vehicles worldwide, that they will continue to receive the world-class parts and support that they have grown to expect from XPart.
XPart will continue the partnerships with its 800-strong supply base, in providing world-class parts and support to the over 3 million MG Rover vehicles worldwide.
XPart will work pro-actively with MG Rover and those acting on its behalf, to develop the future of the existing MG Rover Parts business from the existing supply base through to the Service Network. The XPart 'All-Makes' Program is unaffected and we look forward to further developing this recent offering.
At this time, there are no plans to alter employment levels as a result of MG Rover?s recent announcement.
X-Part is owned by Caterpillar Logistics Ltd, which also distributes aftermarket parts for Land Rover. For over 12 months MGR have effectively had nothing to do with the supply of aftermarket parts for their cars (and hence sold off another decent revenue stream).
As a separate, presumably solvent company, surely X-Part will seek to protect its own interests and work with suppliers to ensure the availability of parts? I was told by an X-Part employee that all MGR suppliers enter into SLA's to supply parts for 10 years after production ceases.
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As a matter of interest, has anyone got figures for total Rover sales, in the UK, in the last ten years?
Last 5 years:
2000 103,663
2001 97,202
2002 99,108
2003 95,848
2004 76,768
Perhaps some one will be along in a minute with the previous 5 years.
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>> As a matter of interest, has anyone got figures for total >> Rover sales, in the UK, in the last ten years? Last 5 years: 2000 103,663 2001 97,202 2002 99,108 2003 95,848 2004 76,768 Perhaps some one will be along in a minute with the previous 5 years.
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Interesting to see that there was no really big fall until 2004.
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