Jonathan Fry: Former MG Rover Bidder Secures €1 Billion Funding

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A former bidder for MG Rover Group Limited, has approached the failed car manufacturer’s new owners Nanjing Automotive, with proposals to discuss opportunities for future co-operation.

The approach has been made by Professor Krish Bhaskar, who formerly led the unsuccessful ‘Triple A’ bid for MG Rover, following the Longbridge company’s collapse into administration earlier this year. Professor Bhaskar has the support of American Arabian Investment & Development Holdings, Inc (AMAR). The investment trust, with offices in the United States, Egypt and Germany, has earmarked funds of up to 1 billion Euros to finance the project.

Professor Bhaskar says,: “I have approached Nanjing Automotive with a view to exploring opportunities to redevelop sustainable car production at the Longbridge site.”

“Nanjing and their UK partners have already stated that should car production resume at Longbridge, it will be on a significantly smaller scale than before. It makes sense to examine the feasibility of acquiring assets at Longbridge which do not form part of Nanjing’s plans for the site, and possibly the sharing of core production facilities. In the event that car production will not prove possible at Longbridge, then we would be prepared to consider an either an existing facility or a new ‘greenfield’ site in the West Midlands.”

Professor Bhaskar is a veteran of the British motor industry. Educated at the London School of Economics, where he subsequently taught, Professor Bhaskar was later appointed to a founding Chair at the University of East Anglia where he founded the Motor Industry Research Unit and later the 1Automotive / MIRU group of companies.

Professor Bhaskar’s professional interest in the motor industry started with a research grant given by the Joseph Rowntree Social Trust to study what to do with the then stalled British Leyland. He produced an alternative to the famous Ryder Report and was one of the architects of British Leyland’s strategy of developing links with Honda. Professor Bhaskar was a prime mover behind the sale of Jaguar and led an almost successful bid for the company together with Christopher McCann.

In 1994 Professor Bhaskar moved to Nice in Southern France, and is currently CEO of MIRU and 1Automotive – a global leader in the supply of motor industry research information and forecasting to leading motor manufacturers and blue chip customers worldwide.

He has also been extremely active in mergers and takeovers within the automotive industry. These include ventures ranging in the United States, United Kingdom, mainland Europe and Asia, having played an instrumental role in the completion of 17 deals within the international automotive sector.

However despite, or perhaps because of Professor Bhaskar’s international outlook, he remains firmly committed to the UK’s motor industry.

Professor Bhaskar says,: “The UK is indisputably a great place to design, engineer and manufacturer cars as Nanjing will soon find out. The Longbridge workforce in particular has proven itself especially flexible and adaptable. Problems that have occurred are largely due to the uncertainties that surrounded the business and poor management.”

“Halewood in Merseyside is an excellent example of a ‘turnaround’ plant. Previously the plant had a chequered history, producing Escorts. But over recent years it has been transformed into a world class plant in terms of quality, producing Jaguars. Soon the Land Rover Freelander will be added to the X-Type. I believe the same can apply to Longbridge and in particular the workforce and the engineering expertise”

“When combined with the necessary finance and a credible management team, the Longbridge workforce’s inherent flexibility and adaptability creates a unique opportunity to build a truly world class car manufacturer in the UK. Through combining AMAR’s financial support with MIRU’s proven track record in distribution, marketing, productivity, plant location and design, I am confident we can do just that, complementing Nanjing and their UK partner’s plans for the Longbridge site.”

Since the acquisition of the Longbridge manufacturer by Nanjing, Professor Bhaskar has also taken a leading role in a number of other ventures.

Professor Bhaskar has also launched a number of ‘green’ and low carbon R & D projects with Graham Farmer, under the name ‘New Triumph’ banner. These projects with ambitious fuel economy and emissions targets, have been launched with the aid of a number of well known UK based automotive suppliers and research institutes. Together Professor Bhaskar and Graham Farmer are planning to submit applications to the Energy Savings Trust’s Low Carbon R & D Programme.

Professor Bhaskar has also been associated with plans to relaunch a spiritual successor to Austin Healey and other venerable marques, from the heyday of the British motor industry. Whilst remaining tight lipped on any involvement in such a project, Professor Bhaskar expresses amazement at recent newspaper reports that GB Sports Cars (GBSC) has acquired the right to use the Austin Healey name.

“I was amazed to read that sources close to GBSC are claiming the company has secured the rights to use the Austin Healey brand. I obviously cannot comment on what exactly GBSC has or has not bought, but I am certain it has not the right to use the Healey brand name in any shape or form. The right to use the name on any production vehicle belongs to a third party and the Healey family who I believe are unrelated to GBSC or its financial backers. However, I do wish Frazer Welford-Winton and the GBSC team every success in their future endeavours and will be watching their progress with interest.”

Research Material:
PROFESSOR KRISH BHASKAR studied at the London School of Economics and subsequently taught at London School of Economics, University of Bristol and was appointed to a founding Chair at the University of East Anglia. In total he has published more than 34 books and written several hundred articles, papers and monographs. He founded The Motor Industry Research Unit at the University of East Anglia and also the 1Automotive / MIRU group of companies.

His professional interest in the motor industry started with a research grant given by the Joseph Rowntree Social Trust to study what to do with the then stalled British Leyland. He produced an alternative to the famous Ryder Report, which evaluated 18 alternatives under a variety of objectives such as employment, profitability. He was supportive of British Leyland’s strategy of developing links with Honda. He was a prime mover behind the sale of Jaguar and nearly led a successful bid for Jaguar much to the pleasant surprise of then Chairman, Sir John Egan.

For much of the 1980s and the 1990s he was the sole adviser to the European Commission on such issues as state aid, innovation in the automotive industry and block exemption. At various stages in his career he has also worked closely with DRI/Global Insight, Marketing Systems, PwC/Autofacts, J D Powers and Associates, LMC, Primedia/Wards and other agencies. Manufacturers to whom he has provided consultancy services include General Motors, Ford, Jaguar, DaimlerChrysler, Renault, Fiat and the Volkswagen Groups.

In 1994 he moved to Nice/Monaco, but also works out of the US where he can be found working in mainly Detroit, Miami and Los Angeles.

MIRU is a global leader in the supply of motor industry research information and was originally established in 1970. Today, the company is based in Nice, France. MIRU has been one of the leading automotive forecasting agencies specializing in automotive demand and other forecasting for the motor vehicle manufacturers and suppliers. MIRU has been concentrating on production forecasts geared to the needs of automotive suppliers and the industry in general. MIRU is also one of the leading authorities in the World on distribution, block exemption, marketing, product policy, long term policy, productivity, profitability, plant location and construction and many other fields. It specialises in the automotive field.

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