Coming from a former British colony in the Caribbean, this writer naturally has a penchant for anything “Made in England.” So when the decision came to buy a car last year, tradition swayed me, the Rover 200. However, I was soon baffled at the reaction of my friends, who questioned the purchase. How could they not appreciate the craftsmanship, or at the least the reputation, of a distinguished British marque? There was a logical explanation. Since the early 1980s, when Honda bought into Rover and began building its cars, Rover’s identity became entwined with that of the Japanese auto manufacturer. Rover was still marketed and priced as a premium British brand, but its engineering and design were basically identical to that of Honda cars. It proved a failing formula, and Rover’s image and market presence worldwide floundered, save for its sister marques of Land Rover and Range Rover.
Patrick Antonia, marketing manager of Avianco, Rover’s local distributor, says another element contributed to Rover’s decline in Lebanon. In the late 1970s Rover began equipping its cars exclusively with engines that ran on unleaded fuel, unavailable in Lebanon until the early 1990s. “So while others were importing cars, we weren’t. And for about 15 years Rover wasn’t present in the market at all.”
In 1994 Avianco reintroduced Rover into Lebanon. The first units to enter the market were the Honda-conceived cars, such as the Rover 800 and the old 200. They were by all accounts reliable cars, but didn’t exactly sell like hotcakes. Already limited in production, Rover cars cost 25-30% more than comparable Honda models.
“The cars didn’t have the brand value of a Rover yet, so we didn’t have a good tool to successfully launch it into the market,” says Antonia. “We were missing a Rover identity.”
Avianco did see growth, since 1993 its sales jumped from $6 million to $20 million last year, but that has mainly been due to the Land Rover range of 4x4s, spare parts, and service department. If sales were less than satisfactory, it was with cars, a problem not particular to Lebanon.
On the international scene, Rover’s struggling business prompted the BMW Group to buy out Rover in 1994. Originally limiting its involvement to higher management, the group took over completely in 1998 after Rover endured huge losses. After injecting $1.2 billion into vehicle development, upgrading the factory’s production lines and expanding production, BMW introduced the Rover 75, the first in more than 20 years to be designed and engineered entirely in-house.
At last came redemption. Rover 75 has already racked up a couple of prestigious awards from leading auto journals, naming it 1999’s car of the year. Rover 75 is a luxury saloon reminiscent of the Rovers of the past, ushering in the return of a distinctly British premium brand. Aesthetically, it is mesmerizing, with a tasteful touch of chrome, soft leather, and wood giving the car an elegant appeal. Its 2.5-liter V6 engine is smooth and packs a punch, providing 175 horsepower and high torque, while the electronic five-speed gearbox offers several driving modes. It’s priced between $35,900 and $50,000, depending on the options. “At $35,900 you get a well-equipped car with everything but leather,” says Antonia.
Will Rover 75 be the car to reinstate Rover into the market? BMW and Avianco are banking on it. In November they collaborated, along with Fortune Promoseven, on a lavish launch to re-introduce Rover into Lebanon. “The Rover 75 has the brand value needed to re-establish Rover as a premium car manufacturer,” says Antonia. Since then, 15 have been sold. “This is good for a brand that is perceived as ‘new’,” he says, “considering the economy.” Avianco is aiming to sell “30 to 50 cars in the first year, with a 20-30% increase annually.”
Don’t worry about Rover 75 becoming dated any time soon, the model is expected to continue on “for at least five to six years,” says Antonia. Rovers are known for a long life. “The first Range Rover stayed the same for 25 years, they make small modifications without destroying the image of the car. It makes for good resale value.”
This brings us to the inevitable question: The resale value of Rover cars is not considered good, will this hamper sales? Antonia explains that once Rover is recognized as a premium brand, its resale value will increase. “We’re working on recreating its identity to re-establish the car on the market … by 2003 we will have a very good brand image.”
