BMW-Rover Group
auto company sales bmw rover

In 1994, British Aerospace sold its 80% majority share in Rover Group for $1.35 billion to BMW, which was looking for a lower-end brand to complement its luxury performance cars. But despite budgeting $2.8 billion to invest in new models, it never fully confronted Rover's inefficient and antiquated practices, and the acquisition turned into a sinkhole. In 2000, BMW broke up the group. It sold Land Rover to Ford and Rover cars to an investor consortium and decided to keep MINI for itself.

Bottom Line

Ford struggled with Land Rover before selling it to Tata Motors of India in 2008. The Rover Car consortium failed and production ceased in 2005. But MINI has been a boon for BMW with its MINI Cooper creating what has become known as the premium small segment. BMW itself went through a management upheaval after the Rover fiasco but emerged stronger than ever. Analyst Jonas notes that while it cost BMW $2.7 billion to exit Rover, its stock "subsequently appreciated handsomely."

  @FortuneMagazine - Last updated September 11 2012 12:05 PM ET
Join the Conversation
Was GM really saved?

Democrats and Republicans are debating that question today, but we may not know the answer for 10 or 15 years.

The 2013 new model smackdown
The most disliked car of the year (so far)
Find Your Next Car

Get the latest car news:

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.