Posted on 04/22/2005 10:52:27 PM PDT by HAL9000
TEHRAN (Reuters) - Two of Iran's state-owned auto manufacturers are considering buying MG Rover, the last major British-owned car manufacturer which collapsed this month, the semi-official ISNA student news agency said on Friday.The 100-year-old carmaker, which once made the iconic Mini and the Land Rover, stopped production after failing to secure a rescue deal with China's Shanghai Automotive Industry Corp.
"Iran Khodro and SAIPA are considering taking over Britain's Rover," ISNA quoted an unidentified official of Iran's Ministry of Industries and Mines as saying.
Iran Khodro, the Middle East's largest carmaker, has ambitious plans to produce 1 million cars a year by 2011 and has begun setting up factories in the Middle East, Africa and former Soviet states.
SAIPA is Iran's second-largest car manufacturer.
Last week British administrators said there was no hope of selling MG Rover and that just under 5,000 workers would be made redundant immediately.
"SAIPA is a couple of steps ahead of Iran Khodro in the talks," the Iranian official was quoted as saying.
The report did not specify which of MG Rover's assets the Iranian automakers were interested in purchasing.
An Iran Khodro spokesman said the company had made no approach so far for MG Rover.
"We are considering it inside the company; it is just an option," the spokesman told Reuters.
SAIPA officials could not be reached for comment.
Iran has a history of ties to the UK car industry. Its streets are packed with the ubiquitous Paykan, a carbon copy of the 1960s Hillman Hunter, which until this month was still in production at Iran Khodro.
ISNA said that a third potential buyer of MG Rover was Dastaan, which is owned by an Iranian politician from the south-eastern province of Sistan and Baluchestan.
London's Daily Telegraph reported on Thursday that senior British officials had held various meetings with the Iranian government since early 2004 over plans by Dastaan to assemble some 150,000 MG Rover cars a year in Iran.
It said Dastaan got cold feet about an initial trial shipment of fully assembled Rover vehicles when it learned the extent of Rover's financial problems.
What these guys are really buying is the name. Its a internationally recognized name and with bold leadership...and cheap manufacturing outside of the UK...it could make a profit. I thought the Chinese would rush in and just buy the company for the name.
Where MG screwed up...they made a great car for guys 35 to 45...and they should have marketed it that way. Their advertising was lousy and they just depended on the name to sell the car.
"Iran has a history of ties to the UK car industry. Its streets are packed with the ubiquitous Paykan, a carbon copy of the 1960s Hillman Hunter, which until this month was still in production at Iran Khodro."
Paykan Jokes ....
Q. How do you make a Paykan accelerate 0 - 60 mph in less than 15 seconds?
A. Push it off a cliff.
Q. What is found on the last 2 pages of every Paykan owner's manual?
A. The bus schedule.
Q. What did the auto parts counterman say when the customer said "I'll take a set of wiper blades for my Paykan"?
A. Sounds like a fair trade to me.
Q. Why do Paykans come with heated rear windows?
A. To keep your hands warm while you're pushing them.
Q. What do you call a Paykan at the top of a hill?
A. A mirage.
Q. What do you call two Paykans at the top of a hill?
A. A miracle.
Q. How do you double the value of a Paykan?
A. Fill up the gas tank.
Q. What do you call a Paykan with brakes?
A. Customized.
Q. How do you make a Paykan go faster downhill?
A. Turn off the engine.
Q. Why don't Paykans sustain much damage in a front end collision?
A. The tow truck takes most of the impact.
Q. What do you call Paykan passengers?
A. Shock absorbers.
Q. How do you improve the appearance of a Paykan?
A. Park it between two Porsches.
"...it could make a profit."
Not on your life.
1. Iran can't compete w/ the Chinese for mass production and low cost labor.
2. Most people in the world who can afford a car want one by a major player.
3. There is already a glut of automobile capacity in the world.
4. It takes a Toyota or GM etc in order to be able to compete. There is no way that a smaller company can compete for long, especially in the "how low can you go" market.
A guy walks into a Tehran car yard and says: "Can I have a wing mirror for a Paykan?"
The Dealer pauses, shrugs and says: "It's a fair swap."
It wasn't marketing. They built unreliable, poor quality cars and they had a lot of trouble adapting to the US safety regulations.
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