Translated material
English patient
Pavel Los, Sergei Strokan
The German concern BMW decided to get rid of the pride of the British automobile industry, the Rover company, when it realized that it was terminally ill.
The German concern BMW decided to get rid of the pride of the British automobile industry, the Rover company, when it realized that it was terminally ill.
In 1994, when buying the English company Rover, the BMW concern hoped to expand the range of its cars with its help (above). However, Rover's largest plant in Longbridge, near Birmingham, has failed to turn a profit. (Photo: AP )
Each country has its own symbols of patriotism. The Germans have legitimate reasons to be proud of their cars - it is generally accepted that they make them better than anyone else in Europe. But unlike the British, they do not have their own James Bond, whose name has become no less famous in the world than the Mercedes and BMW automobile brands. When the irresistible agent 007 in the next episode gets behind the wheel of the latest model BMW, which delights connoisseurs with the perfection of its shape and technical characteristics, the national symbols of the two countries seem to highlight each other’s virtues: such a tough guy, personifying courage, of course, should have just such a car . And such a car has, accordingly, such an owner.
But what happens if one day Bond angrily slams the door and, having struck the German automobile industry to the heart, never drives a German car again? Apparently, this can happen, and very soon. British parliamentarians, trade unionists and ordinary Englishmen say that it is better for James Bond not to drive a BMW in the new series. And so that he is not alone in his boycott, already today other famous compatriots are ready to set an example for him. Several members of the British Parliament recently proudly declared that the BMW as a means of transportation no longer exists for them. If they already have German cars, they will leave them in garages or sell them. And they won’t buy new ones. What happened?
In the five-year-old film, James Bond drove English Aston Martin and Rolls-Royce cars (above). In the last episode, which was released in November last year, agent 007 was already driving a sports BMW, the latest model Z8. And now, for patriotic reasons, he can again switch to domestic cars. (Photo: AP )
Red light for BMW
“Boycott German cars!”, “BMW deceivers - to account!” Over the past two weeks, these slogans can be heard in the UK not only from protesting workers, but also from politicians and public figures of the highest rank. The reason for the general indignation is the decision of the German concern BMW to sell the British automobile company Rover, which belongs to it.
Created back in 1904, over the almost century-long history of its existence, the Rover company has become a symbol of the British automotive industry. The British are as proud of her as they are of James Bond, Lipton tea or Chivas Regal whiskey.
Workers at Rover factories accuse the “German capitalists” of a reckless pursuit of profit and complete indifference to the loss of thousands of jobs, that is, the absence of the “social responsibility” so cherished in Europe. Prime Minister Tony Blair is indignant that BMW management “did not inform him in advance” and did not consult him at all before making such a decision. And trade union leader Ken Jackson calls on his compatriots to “hit BMW where it hurts the most – the profits.”
However, emotions are emotions, but what constitutes the “pride of British industry” today? It is in the state of affairs at Rover that one should look for the true motives of the actions of German automobile managers.
They calculated - they shed tears
The BMW concern bought the Rover company in 1994. In Munich, where its headquarters are located, at first there was jubilation: the Bavarians had finally managed to significantly expand the range of cars produced at the factories owned by the concern. Experts have long formulated the thesis that in the future the automobile market will be divided among several automobile giants, which will offer customers the entire palette of models: from a small car to a luxury limousine. It seemed that the Bavarians took exactly this path.
But soon the delight in Munich diminished. Time passed, and Rover brought only losses: the equipment at the largest Rover plant located near Birmingham did not meet modern requirements, and worker productivity was low. Year after year, large sums had to be invested in Rover, but the company still could not get back on its feet. According to experts, over the past 5 years the Bavarians have lost from 10 to 15 billion German marks on the Rover. The British company's cars sold poorly: of the 58 thousand Rovers 75 produced last year, only 25 thousand were purchased.
As a result, international investors were skeptical about the prospects for further development of the entire BMW concern. BMW shareholders also began to show dissatisfaction. Let us remember that all these attempts to save the “English patient” took place against the backdrop of brilliant successes of other German automobile companies - primarily Daimler-Benz (later DaimlerChrysler) and Volkswagen.
According to the German press, one of the largest private investors in Germany, the Quandt family, gradually began to lose patience. He has a long-standing relationship with BMW: about 40 years ago, the Munich concern found itself in a very difficult financial situation, and to this day it owes its independent existence to the most famous representative of the influential family, Herbert Quandt. Today, about 48 percent of BMW shares are concentrated in the hands of his heirs, and few doubt that all important decisions at BMW are made only with the consent of the Quandts - and perhaps even on their initiative. Young family members were especially unhappy: Rover seemed like a “black hole” into which investments disappeared without a trace, without bringing any profit.
The first harbinger of the impending storm was the departure in 1999 of BMW chairman Bernd Pischetsrieder. Experts attribute this to his inability to turn the tide at Rover. The new head of BMW, Joachim Milberg, did not have enough powder for long: he fought the crisis at the British company for exactly a year and then gave up. The result was the already well-known events of mid-March: the German concern sold most of Rover to the British financial company Alchemy Partners, Ford acquired the right to produce Land Rover cars, and the Germans kept only the Mini model from Rover. , which they are going to modernize and produce in the future.
"Rover" and the euro
The dismemberment and sale of the unprofitable Rover will obviously entail the restructuring of the company and the dismissal of an entire army of employees. This is why BMW management is now being criticized for the lack of the notorious “social responsibility”.
However, the latest actions of Munich managers are nothing more than following the Anglo-Saxon economic model, according to which the main goal is to increase profitability and increase profits for shareholders. In the US and UK, this model led to unprecedented economic growth and then a record decline in unemployment. In Germany, they first of all thought about the “social consequences,” but in the end, by the mid-90s, they ended up with an economic depression with millions of unemployed. Its consequences are felt to this day: if in March of this year the unemployment rate in the United States was 4.1 percent, then in Germany it was over 10. Therefore, BMW managers have now chosen their British colleagues as an example to follow.
But it was the British who felt hurt. Meanwhile, in the era of globalization, identifying any company or brand with a specific country becomes almost impossible. The Italian Fiat is gradually passing into the hands of the Americans, the famous brands of Czech beer belong to a company from South Africa, the most profitable part of the German company Mannesmann - mobile communications - was bought by the British. The last example is especially significant. Politicians are happy with globalization if a company from their country acquires a foreign one and acts, so to speak, in the role of an absorber rather than an absorbed one. When the British-American concern Vodafone Airtouch fought for the right to buy Mannesmann last winter, no one was indignant in London. But as soon as a British company became the “victim,” the British became worried.
However, experts are unanimous that one of the reasons for Rover’s failures was London’s refusal to join the European Monetary Union. Since BMW bought the British firm, the value of the pound against the German mark (and subsequently against other euro area currencies) has risen by about 30 percent. As a result, the price of Rover cars in other countries has increased significantly, and foreign products have fallen in price on the domestic British market. The result was a drop in sales of cars produced by Rover. London is well aware of this harmful relationship. Proof of this is the recent statement by British Foreign Secretary Robin Cook. He warned that if his country does not switch to euro payments in the foreseeable future, it will have a negative impact on the desire of foreigners to invest in the UK.
So until the British humble their pride and enter the euro zone, even James Bond, driving the legendary car, will not be able to save it.