Would this affect a purchasing decision?

-Chris-

If you asked me over the last few years, "Chris, should I buy a Rover/MG?", I've have said "no". I've have sited concern for what would happen to you and your car if Rover went under as a company - what happens to your warranty, your aftersales service, the availability of spare parts?

I don't think I'd have been alone in having that opinion.


When you start reading about the possibility of Ford or GM going bust, does this spark the same concern?

If not, why not? Is it the strength of the brand and the feeling of "Ford have been around forever, and they'll stay around forever", or do you have more specific reasoning?


(P.S. GM = Opel, Chevrolet, Saab).

Biro

AudiChris wrote: »

If you asked me over the last few years, "Chris, should I buy a Rover/MG?", I've have said "no". I've have sited concern for what would happen to you and your car if Rover went under as a company - what happens to your warranty, your aftersales service, the availability of spare parts?

I don't think I'd have been alone in having that opinion.


When you start reading about the possibility of Ford or GM going bust, does this spark the same concern?

If not, why not? Is it the strength of the brand and the feeling of "Ford have been around forever, and they'll stay around forever", or do you have more specific reasoning?


(P.S. GM = Opel, Chevrolet, Saab).

Availability of spare parts would make it a different ball game. How many Fiesta's are in the world compared to how many Rover 214's? It'd be well worth while for "spurious" manufacturers to make any spare part necessary for Fords on the small chance that they'd disappear from existance. Even Ford themselves would have millions of spare parts, if only by virtue of unsold stock that caused them to go wallop in the first place.

-Chris-

Fair point, just like Mini parts are in plentiful supply from spurious suppliers.

So would financial instability of either of these companies only affect new car sales - second hand prices would remain strong?

Biro

AudiChris wrote: »

Fair point, just like Mini parts are in plentiful supply from spurious suppliers.

So would financial instability of either of these companies only affect new car sales - second hand prices would remain strong?

I don't know to be honest. I suppose another way to look at it is when Rover were struggling, they probably were so tight on funds that they couldn't afford to develop and build a car to the quality they wanted. A company like Ford who are used to a few hundred million loss take the approach of make-or-break and borrow a billion to try and make the best car in it's class across the board to get them back on track. They take the view that they were once strong, the brand is strong, but there's a reason for loosing sales. When they look it's usually down to competition out-doing them, so they need to up the anti and produce cars like the all new Fiesta in a bid to win sales back. Because of the sheer size of them it's nothing to aquire that kind of money.
Rover on the other hand were dwindling for so many decades what finance company would lend them any money? So chances are the 2006 Rover 75 was even more poorly built than the 2003 one when they had more cash!

unkel

Biro wrote: »

Availability of spare parts would make it a different ball game. How many Fiesta's are in the world compared to how many Rover 214's?

The Rover spare parts business makes a decent profit afaik. Margins on spares are usually quite high anyway. I can't see availability of spare parts as a problem if a major manufacurer goes under.