ABSTRACT
Events that took place in the auto industry in the West Midlands during March to May 2000 serve as a reminder that while in the ‘intelligent region’ (Cooke and Morgan, 1991) economic development agencies may devise and design strategies to secure regional competitive advantage, what might appear to be ‘historical disturbances’ occur. The reference is of course to the announcement in March 2000 by BMW of its intention to sell off Rover, in the first instance to Alchemy Partners, a venture capital company. The Rover plant at Longbridge was eventually sold for £10, to the perhaps appropriately named Phoenix Consortium, headed by John Towers, a former chief executive of Rover. Land Rover was sold to Ford for rather more. This is a story, however, which begins earlier, when in 1995, Rover was sold to BMW and when the die was already cast by wider changes taking place in the industry. Indeed, such developments must be seen in the context of the restructuring of the automotive industry in Europe and worldwide. More pertinently, they act as a reminder that there is a need to base policy on a proper understanding of business change.
