Euro will aid export trade – Rover boss
ROVER boss Tony Rose said the introduction of a single European currency promised a major boost for business. Mr Rose, the deputy chairman of Rover Group, said there were tremendous potential benefits from dealing with 11 countries operating a common currency.
Even though Britain is not in the first wave of countries joining the single currency, he said: “We should be able to get significant savings in transaction costs alone.” He was speaking at a seminar at Blenheim Palace yesterday on the effects of monetary union on business.
He said: “The movements in the pound for UK-based exporters are very significant and have been giving companies like ourselves major challenges.” The strong pound was blamed earlier in the year by the company for 1,500 job losses, mainly at the Longbridge plant in Birmingham.
He said: “You can be sophisticated and shield yourself from the effects of currency fluctuation, but eventually you do feel the effect.” Mr Rose said the arrival of the euro on January 1, 1999, should help sales of the new Cowley-built luxury car, the Rover 75, which is due to go on sale next March.
He said: “The car has been well designed, with new manufacturing facilities and a workforce absolutely determined that it will be one of the best cars around.” Yesterday’s seminar was organised by Key Communications of Thame, whose managing director Felicity Read warned that businesses needed to gear up quickly to dealing with the euro.