IDEAS home Printed from https://ideas.repec.org/a/ids/ijatma/v12y2012i2p117-136.html
   My bibliography  Save this article

Re-examining the BMW-Rover affair: a case study of corporate, strategic and government failure?

Author

Listed:
  • David Bailey
  • Alex De Ruyter

Abstract

This paper analyses corporate and government strategies during the purchase, period of control and divestment by BMW of the car manufacturer Rover over the period 1994 to 2000. This paper examines three types of 'failure'. It views BMW's purchase of Rover as a 'corporate failure', with British Aerospace keen to sell Rover to raise cash and with BMW not realising the real condition of Rover. It then moves on to examine BMW's 'divide and rule' strategies with regard to working conditions and subsidy-seeking and its decision to sell Rover as an example of 'strategic failure'. Finally, it considers the 'hands-off' nature of British policy towards such transnational firms, and BMW in particular, as an example of 'government failure'. This paper concludes by raising the possibility of an EU-wide policy towards transnationals, especially in terms of monitoring the activities of such firms.

Suggested Citation

  • David Bailey & Alex De Ruyter, 2012. "Re-examining the BMW-Rover affair: a case study of corporate, strategic and government failure?," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 12(2), pages 117-136.
    • Handle: RePEc:ids:ijatma:v:12:y:2012:i:2:p:117-136
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=46858
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gill Bentley & David Bailey & Stewart MacNeill, 2013. "The changing geography of the European auto industry," Chapters, in: Frank Giarratani & Geoffrey J.D. Hewings & Philip McCann (ed.), Handbook of Industry Studies and Economic Geography, chapter 3, pages 67-96, Edward Elgar Publishing.
    2. Dan Coffey & Carole Thornley, 2012. "Low carbon mobility versus private car ownership: Towards a new business vision for the automotive world?," Local Economy, London South Bank University, vol. 27(7), pages 732-748, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijatma:v:12:y:2012:i:2:p:117-136. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=2 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.