Archive : Austin Rover losses

DAILY EXPRESS

Car giant Austin Rover announced expected half – year losses of £60 million yesterday. The shock news came on the day that the State – owned firm offered its workers pay rises of at least £9 a week over the next two years .

Austin Rover , which made a £600,000 profit in the same period last year , said the rises would keep its employees at the top of the industry’s pay league.  This is at a time when it has been struggling to keep its market share above 15 per cent in the face of fierce competition .

Austin Rover’s problems are two fold, writes Motoring Editor David Benson. It is operating in the toughest selling market since the war and its products , with the exception of the new Rover , already have a vintage feel which puts off new car buyers .

The tough sales environment has meant that all manufacturers are offering huge incentives to enable dealers to meet sales targets.
But these incentives cut in to profits.

Keith Adams
Latest posts by Keith Adams (see all)

Be the first to comment

Leave a Reply

Your email address will not be published.


*


This site uses Akismet to reduce spam. Learn how your comment data is processed.