MG Rover is exporting ‘Britishness’, in order to promote its Rover and MG car brands in overseas markets. The discreet Union Jack badge that goes on the side of every car is just the smallest part of a pan European marketing campaign aimed at bringing new customers to the brands.

"Our European customers love ‘buying British’. And cars don’t come any more British than ours. It’s our natural marketing advantage, and we are looking to build on it at every opportunity," said Rod Ramsay, managing director, sales and marketing, MG Rover.

In Germany, MG Rover is to recreate an Albert Hall-style Last Night of the Proms; complete with bobbing Promenaders, Union Jack bowler hats and full throttle renditions of Pomp and Circumstance and Jerusalem. The band of the British Rhine Army will support the musical evening. It will raise funds for a local children’s hospital. Support will also be given to a four-week long Shakespeare Festival, to be held in a replica of the original Globe Theatre.

In Italy the company is boosting sales with a competition that promotes the use of the English language. The winners will receive a holiday in the UK.

Luxembourg has its very own Rover 75 supporters club, which meets regularly to celebrate the ‘Britishness’ of its favourite car. It will visit Longbridge in 2005, the plant’s centenary year.

In France, Portugal and Spain, MG Rover sponsors sports associated with British success, such as rowing, tennis, golf and horse riding, even gardening.

MG Rover Netherlands offers cricket workshops for customers, as part of its sales promotion programme.

Recognising that the Rover and MG brands have a long history in many markets is also an important part of building new customer relationships. On December 15, Juergen Voss, managing director, MG Rover Germany will present a company donation of €10,000 towards the rebuilding of the Frauenkirche, a Dresden church completely destroyed during the war. The British Ambassador will accompany him. MG Rover also supported the visit to Berlin, by Her Majesty Queen Elizabeth, in November.

Growing European sales is a key strategy for MG Rover.

The MG cars spanned each decade of motorsport competition were lined up outside the company’s Visitor Centre at Longbridge. The MG included the 1925 ‘Old Number One’, a K3 Magnette, TA Cream Cracker, MGA, racing Midget, Stirling Moss’s MGB, hill climb RV8, MGF Super Sports, ZR Rally, TF Cup racer, ZS BTCC and the stunning EX257 Le Mans car.

David Sharples, MG Sport & Racing Managing Director, said: "Getting all of these historic and modern competition MGs together was a great way to complete MG’s 80^th anniversary year. The enthusiasm that the owners have for their MG cars is quite infectious."

Longbridge: With a clear goal of increasing worldwide sales, today MG Rover Group announces a strengthening of its sales and marketing organisation with a number of proven executives joining the team under Rod Ramsay, now managing director, worldwide sales and marketing.  The new appointments include: managing director UK sales and marketing, UK corporate sales director, UK marketing manager and European sales and marketing director.

For the UK Robert Hazelwood joins as managing director UK sales and marketing and brings 22 years of motor industry experience to this key role.  His previous roles included: managing director Maranello Concessionaires, head of Inchcape Retail, managing director Mazda France, and southern regional manager Nissan Motor GB.

Guy Jones has taken on the role of UK marketing manager for the MG and Rover brands.  He joins from Kia where he was marketing director, following a successful career with Land Rover and Bentley.

Completing the UK team is Kevin Brown, corporate sales director.  He rejoins the company after working for consultants KPMG and as head of strategy for the RAC.  He had previously worked for Rover Group in the fleet organisation.

As the dealer network is expanded across Europe Paul Stroud takes on the new position of European sales and marketing director, moving from the role of commercial director UK.  Stroud was previously head of brand strategy and communications and regional director Europe south for MG Rover.

“I am delighted we have recruited talented and proven executives into our front line team which only increases my confidence that we can raise sales worldwide in 2005,” commented Rod Ramsay, managing director, worldwide sales and marketing.

As part of a company streamlining programme, sales and marketing has been established as a stand-alone organisation.  In addition to the existing sales and marketing functions, the division will now have responsibility for aftersales and Phoenix dealerships.

MG Rover now has 1,000 retail outlets in Europe and 1,250 worldwide.

Since changes in block exemption rules have allowed car dealers to sell more than one brand from a single site, MG Rover has been highly successful in attracting the new multi-franchise operations.

"Rover and MG are niche brands, of high quality and strong customer appeal, so they harmonize well with other makes in the showroom, and they cover 80 per cent of passenger car segments. Dealers are also attracted by the brands’ historic customer base, which is large and brings valuable income from servicing and repairs, and provides lucrative marketing opportunities," said Rod Ramsay, director of worldwide sales, MG Rover Group.

Attracting dealers most suited to the Rover and MG brand qualities is a key strategy, as MG Rover rationalises the network it inherited. When the business changed hands in May 2000, many dealers were left with mixed interests; BMW cars, Mini, Rover, MG, Land Rover and Jaguar all competed for showroom space. In many markets MG Rover has responded by changing more than half of its dealer network.

Today Phoenix Venture Holdings Limited issued its shareholder’ report for the 12 months to 31 December 2003.

Kevin Howe, Group Chief Executive of Phoenix Venture Holdings commented: “In an increasingly challenging environment for the automotive industry, we have reduced the Group’s losses for the fourth consecutive year to a level that is now less than 10 per cent of that in 1999, the last full year before we acquired the business from BMW.

“Our focus is now firmly on the future.  We continue to invest in the development of the MG and Rover brands and to review our cost base as we work towards the planned collaboration with SAIC, announced in June 2004.”

 Click here for a Copy of the Shareholders Report! 

MG Rover Group has appointed Kevin Brown as its new Corporate Sales Director. Kevin returns to the company with widespread corporate sales experience and a desire to develop and expand relationships with new and existing fleet customers.

"My message to corporate customers is that we know how to serve your business needs," said Kevin. "We have coherent and up-to-date MG and Rover products that embrace a wide range of fleet requirements. Both have a strong character and pedigree, are well-engineered, reliable, economical and they’re built in the UK. My focus will be to develop the awareness of our products within the corporate market and promote just how good our cars are."

Kevin heads a Corporate Sales team of 32 people tasked with building MG Rover’s business in the corporate market. Specialist teams are focused on leasing and rental companies, dealer corporate sales, government sales, and business development in the private sector. Corporate enquiries can be made to
0121 482 5253.

Previously Kevin held a variety of retail and corporate sales positions in the then Rover Group. He went on to work for KPMG, the professional services firm as a management consultant in its automotive practice, and the motoring services company RAC as head of strategy for its Business Solutions division.

Today MG Rover Group announces the appointment of Daniel Ward as communications director with immediate effect.  The decision to appoint a communications professional with long experience of the motor industry represents a significant strengthening of the company’s PR function.

Following an extensive review of the company’s communications needs the department will be restructured to include internal communications, product and corporate affairs, government affairs, global product communications, international communications and UK product PR.  All these functions will report to Daniel Ward who is also responsible for all communications relating to Phoenix Venture Holdings.  He will report directly to Kevin Howe, chief executive MG Rover and PVH.

Previously Daniel held positions as executive director communications Ford of Britain and vice president communications Nissan Europe.  His career in journalism included motor industry correspondent on The Times and technical editor of Motor magazine.

“We have needed to strengthen our communications team for some time but we wanted someone proven and capable of handling all aspects of communications from internal through to new products,” explained Kevin Howe, “and Daniel’s record underlines we have found the right person.”

“Two great British marques and the chance to head an international team represent exciting challenges for me and I am delighted to be joining MG Rover,” said Daniel Ward.

As part of the restructuring all media enquires will now be handled by the in-house MG Rover communications staff.

Desford, UK and Longbridge, UK – 9 July 2004 – Caterpillar Logistics Services (UK) Limited (“Cat Logistics”), a wholly owned subsidiary of Caterpillar Inc. (NYSE: CAT), and Phoenix Venture Holdings Limited (“PVH”) are pleased to announce that they have reached an agreement for Cat Logistics to acquire the parts business of U.K. auto manufacturer, MG Rover, a wholly owned subsidiary of PVH.  The value of the transaction is in excess of  £100 million, with an ongoing profit sharing agreement.

Cat Logistics will acquire MG Rover’s parts business, which includes the sourcing, marketing, distribution and sale of automotive service parts and accessories to MG Rover dealers, distributors, importers and other related customers worldwide.  Since 2001, Cat Logistics has managed these activities on behalf of MG Rover from its base in Desford, Leicestershire, UK.  Cat Logistics currently supports an existing MG Rover vehicle population of more than 2.5 million.

In accordance with the terms of the acquisition agreement, PVH has an option to buy back MG Rover’s parts business in four to five years.

“The acquisition of MG Rover’s parts business represents an attractive investment, while Cat Logistics is allowed to develop the best-in-class services it provides to the many MG Rover dealers, distributors, and importers worldwide,” said Mary Bell, Chairman & President of Caterpillar Logistics, “We have long valued our relationship with the MG Rover Group and Phoenix Venture Holdings, and our organization in Desford has considerable expertise in the purchasing, marketing and distribution of MG Rover aftermarket parts.”

Kevin Howe, Group Chief Executive of Phoenix Venture Holdings said, “This deal provides valuable resources which will be invested in our core business, the MG Rover Group ahead of the strategic relationship with Shanghai Automotive taking effect.  With experience and capability built up over many years Cat Logistics is extremely well placed to continue to provide best in class service to MG Rover dealers, distributors and importers worldwide.”

Completion of this agreement is subject to regulatory approval.  Current operations at the Cat Logistics Desford, UK MG Rover parts distribution facility will continue, with all 390 employees remaining with Cat Logistics, and all current employees of MG Rover’s parts business provided with the opportunity to transition to Cat Logistics.

About Caterpillar Logistics Services, Inc.

In addition to their over 15 year relationship with Rover, Caterpillar Logistics Services, Inc. provides world-class supply chain solutions and services to its parent company, Caterpillar Inc., and more than 50 other leading corporations throughout the world. Headquartered in Morton, Illinois, Caterpillar Logistics operates more than 100 offices and facilities in 25 countries on six continents. Caterpillar Logistics provides its full service capabilities to companies in market sectors, which include automotive service parts, industrial service parts, consumer durables, technology and electronics, manufacturing logistics, and aerospace service parts.

More information is available at www.catlogistics.com.

About Caterpillar Inc.

For more than 75 years, Caterpillar Inc. has been building the world’s infrastructure and, in partnership with its worldwide dealer network, is driving positive and sustainable change in every continent.   With 2003 sales and revenues of $22.76 billion, Caterpillar is a technology leader and the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. 

More information is available at www.cat.com

About Phoenix Venture Holdings Limited

Phoenix Venture Holdings Limited is a privately held British company with over 6,000 employees.  Its wholly owned subsidiaries include MG Rover Group, Powertrain Limited and MG Sport & Racing.

At a packed awards ceremony at the Dorchester Hotel, London last week, MG Rover Group, manufacturers of MG and Rover cars, was announced the winner of the Manufacturing Foundation Award for the Best Partnership between Business and Education in the Institution of Mechanical Engineers’ (IMechE) prestigious Manufacturing Excellence Awards 2004. The ceremony, hosted by BBC news reporter Fergal Keane, was attended by over 500 senior engineers to reward and celebrate the best of British manufacturing and engineering.

James Bentley, Director of the Manufacturing Foundation said: "The effort MG Rover puts in with primary and secondary school children is quite outstanding. Let’s hope that the excellent example they have set encourages other manufacturers to get involved with schools near them.

"It is also encouraging to see that it’s not just large companies that are committed to working with education. Two smaller manufacturers, Gripple Ltd and Alitex Ltd, were commended at the award ceremony in London, demonstrating just what can be achieved with limited resources and a lot of enthusiasm."