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MG Rover. Latest news shows that the car company, MG Rover will be taken over by a Chinese car manufacturer. This may vastly affect the sales of car production for the MG Rover Company.

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Business Studies coursework Task 8 continued: Latest news shows that the car company, MG Rover will be taken over by a Chinese car manufacturer. This may vastly affect the sales of car production for the MG Rover Company. The company 'Shanghai Automotive' will own 70% of the company whilst MG Rover owning 30%, which means that the company may change names and affect customer's who already own a MG car, meaning they may feel unhappy with the change, as the company production maybe moving to China. This means sales and customer satisfaction may change dramatically for the business. As the company is taking over (Shanghai Automotive) this means that they are going to inject around �1 billion pounds aiming to make over 100 million cars a year. This means saving over 6000 jobs that would have been depleted if the Chinese car manufacturers had not come up with the money to save the business. This maybe recognised by the public, meaning that they like the new changes as they will be able to carry on with their job. However, the problems that have occurred are that they want to concentrate the main manufacturing of the car over in China, and bringing machines and technology over to Britain, but only are considering making around 200,000 cars. ...read more.


The changes perceived by the staff will swing both ways. This is because they will be motivated and glad that they have not lost their jobs, and feel that they want to make an impact and impression to make the business look good under, maybe a new company name. However, the SAIC may honour their jobs at first as they are making only a small number of cars over in Britain, but after a while they may want to move the whole production line back over to the main source in China. This means that the jobs will be lost, like they were in the first place. Due to the fact of further job losses, as the main production may be moved to China, this may affect the reputation of the company if the story is to get out. This will mean that the companies name will be in shame which may put customers off. Another disadvantage of this takeover, is that the main production of cars will be made in China and Chinese language, so the structure and build up of the engines/cars may not be the same, so the workers, will have to learn new structures and maybe languages of the car in able to manufacture it. ...read more.


Also by making the cars in China, the way they want to, with their large machines, the production cost will be less but still make the same cars. This means that by making the cars but at a faster and cheaper rate, we can still sell the cars at the same price, but we will be making a larger profit on the car models. The disadvantage and downside would be the new image and reputation the company receives the jobs of British workers at state, the fact that capital intensive in the business could be introduced and jobs will be lost. The lack of control/quality of the new vehicle will obviously be compared to the old MG Rover cars, to see if they meet the same or better quality, which could result in the number sales the car manufacturers make. Also the delivery problems again, that if the cars are concentrated and made over in China, the exporting of the cars into the UK and Europe may take a long time, which means that the customer maybe unhappy with the length and poor service they are receiving. All these points will be considered to whether the change is a good or bad decision to the future of the British car company, MG Rover. ...read more.

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