Ford Motor Co. may be bleeding red ink, but the troubled U.S. automaker took the prudent move to keep the venerable British brand Rover out of the hands of a possible Chinese rival. The Rover car brand split from the Land Rover truck business in 2000 when BMW kept the label after selling the sport utility brand to Ford. However, as part of the Land Rover deal, Ford had the first right of refusal for the Rover brand should BMW choose to sell. Shortly before Rover landed in bankruptcy last year, BMW sold its intellectual property to Chinese car maker Shanghai Automotive Industry Corp. leaving the brand name the only real asset of value. Shanghai Auto reportedly agreed to pay an additional £11 million ($20 million) for the nameplate. However, Ford exercised its right to purchase the brand name leaving Shanghai without a recognized marque to enter the European car market. Had Ford not exercised the option, the two could have found themselves in court if Shanghai Auto had begun selling sport utility vehicles — any sale of the brand would have stipulated that the Rover name could only be used on cars. Ford reportedly has no interest in resurrecting the brand. Of course, with the lackluster sales of its U.S. brands, maybe Ford should reconsider. —Matthew Wurtzel
See story from The Telegraph
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