MG Rover expands in Germany

Bonn, Germany. MG Rover aims for a big sales boost in Germany. The UK automaker is rebuilding its German sales network to help achieve its goal.

At the beginning of this year MG Rover's German sales network comprised only 50 dealers and 90 service workshops.

"We took on more than 20 new partners during the first half of 2004," said dealer development chief Wilfried Fleischer.

He hopes that by the end of the year the network will comprise 100 dealers and 120 service partners "to maintain the nationwide supply for existing customers."

MG Rover Germany hopes its sales network will extend to 170 dealers in the medium-term with many of these multi-brand dealers.

Juergen Voss, managing director for Germany, hopes to reach at least last year's unit sales of 5,855 cars in 2004.

The revamped Rover 75 sedan and wagon (1,600 units) and MG ZT/ZT-T (350 units) models will make up a large share of the total while Voss plans to sell up to 70 of the new flagship MG ZT 260 V8.

Voss expects annual unit sales of up to 10,000 autos in the medium-term.

Sales should increase by a fifth to 185 million euros in 2004. Operating profit should be approximately 2 million euros.

Contrary to many competitors, MG Rover Germany only demands very modest advance investment of 3,500 euros from its dealers.

Tags: Automakers MG