Nicholas Craig column
Apr 15 2005 By Nicholas Craig, The Journal
I have always driven a Rover and still do. My first was a status symbol, coveted by friends and approved of by my discerning mother.
But my present Rover looks as though it will be my last.
In the week in which Rover wheels at Longbridge stopped turning, my decades of loyalty brought home to me the extra-ordinary changes in fortunes we have witnessed in British brand names over the last few decades.
Tesco, with its "pile em high, sell 'em cheap" philosophy, was frowned on by discriminating shoppers when it opened in the latter half of the 20th Century.
In the early 1990s it was number three in British supermarket sales. Now it is number three in the world.
Tesco's rise has been relentless with the chain unveiling record annual profits of £2.03bn this week.
Conversely, the mighty Rover has less than 3pc of the car market. Its only hope is the attempted deal with the Shanghai Auto-motive Industrial Corporation.
My knowledge of Chinese business and the Shanghai Corporation will not comfort Longbridge workers.
The Chinese company undoubtedly intends to manufacture Rover cars. Apparently it has already paid for the intellectual property rights for the Rover 25 and 75 models and the power train, engine and transmission systems.
What the Shanghai Corporation will never do is to take over Rover as a going concern, complete with all its pension liabilities.
Rover's declining fortunes perhaps reflect its unwillingness to change rather than a more general manufacturing decline.
Tesco's success in a tough marketplace shows how bold new ideas and constant energy can bring billions.
By finding new and better ways of selling food, more than 13 million customers shop there every week.
The chain pioneered internet shopping, making it possible to order goods at any time of day or night. It went for big, out-of-town stores selling everything and investing in local "express" stores. It slashed prices and developed new lines for the quality market.
Change or die. The fact is that if a company can't take the heat, it has no option but to get out of the kitchen.
