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.
Is the Editor of the Parkers website and price guide, formerly editor of Classic Car Weekly, and launch editor/creator of Modern Classics magazine. Has contributed to various motoring titles including Octane, Practical Classics, Evo, Honest John, CAR magazine, Autocar, Pistonheads, Diesel Car, Practical Performance Car, Performance French Car, Car Mechanics, Jaguar World Monthly, MG Enthusiast, Modern MINI, Practical Classics, Fifth Gear Website, Radio 4, and the the Motoring Independent...
Likes 'conditionally challenged' motors and taking them on unfeasible adventures all across Europe.