The company says it is confident that it will move into the black next year. But the profitability claims should be treated gingerly. Rover may slip into the black next year, but experts say it is not certain that it will stay there the following year. And if it does manage to turn a profit, even the company's chief executive, Kevin Howe, concedes it will be only a 'marginal' one. As such, the management's ultimate aim over the next four years is to cut costs and polish the marques in order to make Rover as attractive as possible to a buyer prepared to invest for the long term.
Rover faces enormous challenges.
Its business plan is predicated on selling 200,000 cars a year. Heightened fears of a global slowdown do not provide much succour for those keen to talk up Rover's mid-term prospects. Back in the UK, the company is in the midst of a vicious turf war, with rival manufacturers slashing prices to dramatic effect. Prices fell by 9.4 per cent in January compared with the same month the previous year. As a result, most UK carmakers are struggling.