The alliance between honda and rover

A three-door Rover also launches. Last but not least, by forming the alliance, Honda could create a chance to be the supplier of major components and facilities of Rover; therefore, create more sales profit and spread the research and development expense as well. Moreover, the fact that India used to be the colony of UK also shortens the culture distance between the two firms.

Firstly, Rover was incapable of giving what Honda wanted in product design. As to Rover, firstly, the excess capacity had been a headache for the company. In addition, in order not to be left as an assembler for the big player, Honda could be a suitable partner.

From the projects shared by the two firms, it could be seen that Rover had been trying to get more involved in the product design.

honda rover

They also saw Rover as being stronger and more stable. Moreover, compared to direct investment, the alliance also had less risk. By the way, they have something to each other.

Rover honda case study

Nevertheless, the sale to BMW was the real end to what had been a remarkable industrial episode. It is also sold as the Honda Concerto. Also, a Japanese firm did not appear threatening to the British competitors. The Rover is a reworked, upmarket version of the latest Honda Civic , despite the Rover-Honda collaboration finishing a year earlier. By this time, all but the Rover, Land Rover and MG brands were still active - Austin had already been dropped in , because it was felt by Graham Day's new management that many of the other marque names within the former BL had been tarnished by their association with the poor quality cars of the s. Third, working with Rover made it much easier to source components in Britain and Europe than if Honda had done it alone. Following bids from Alchemy Partners and Phoenix Consortium , [8] core areas of manufacturing capability, along with a collection of marques such as MG , were purchased by the Phoenix Consortium. As to Rover, firstly, the excess capacity had been a headache for the company. For Honda, the purposes of forming the alliance with Rover could be from a few respects. On the other hand, Honda was quite successful because they were a de-regulized company which allowed them to be more competitive and flexible. By involving in the product development in the alliance with Honda, Rover could learn how to improve the quality and reliability of its own products and regain the capabilities of designing the main components. Also we could see that Honda successfully made itself become the supplier of Rover, not only on the major components of the cars, but also the facilities in the factories. Companies in the same business will have a common understanding of the business that overrides all such superficialities.

With a local partner, it would be easier for Honda to acquire the related information, even the applicable skills and technologies related to the product design.

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