Unipart

[Mike Wattam <MikeWattam@domain.elided>]

Dear All

Changes at Unipart you might read about in the press, so here is the
correct story.

For those of you who may not know, Unipart was at one time part of the
Rover Group (and it predecessors e.g., BL) responsible for supply of parts
to Rover dealers and so on (and also very successfully supplying all-makes
parts to the UK unfranchised motor trade).

A few years ago Rover sold Unipart to gain themselves some much-needed cash
(aka Jaguar) but kept a 19% share stake, and basically Unipart was bought
by its management and staff - one of the few truly democratic British
companies and it has done very well because of it.  Unipart remained under
contract to supply Rover dealers and very well thay have continued with
this arrangement too.

They even opened or bought their own factories to make parts for Rover
production lines and for the after-market - such as radiators, fule systems
and exhausts.  Their manufacturing operations have suffered from cancelled
production orders from Rover recently due to their (BMW) diabolical
mishandling of Rover design, sales and marketing which has in months
resulted in the halving of Rover new car sales volumes and a frightening
slump in used car prices (will now be the cheapest time to buy as used
Rover?).

I expect you also know that BMW owns Rover.  Some years ago they gave
Unipart notice that they would be pulling out of this arrangement that
works by year 2002.  Accordingly BMW have just sold their 19% share back to
Unipart.

Unipart have moved their business on. They now distribute on behalf of
manufacturers VW, Volvo and Daihatsu with more to follow, and they have
also got extensive non-motor interests.

Meanwhile they are continuing with their all-makes parts ranges and also
with Rover parts which they are permitted to do under the agreement.  This
doesn't affect Stags as BMW will not be interested in parts for 'old' cars
and will allow Unipart to continue to make parts for them.  But in the long
teerm, Unipart might decide not to distribute parts for 'old cars' as they
will have no contractual obligation and they are a very commerical
organisation.

I have a long personal relationship with the senior management of Unipart
and I am continuing contact with them to influence them as far as possible
to keep 'old cars' in mind - and in production.

As you will have already seen in the press, all is not well at Rover or
BMW.  Heads have rolled but this is definitely not the end - just the
beginning.  I predict there is plenty of trauma going to develop over the
coming months but I won't make predictions as I could far too easily be
proved wrong with the pasage of time!  In the meantime Ford have got
Reitzle (deposed argumentative head of marketing and design at BMW) -
aren't they the lucky ones?  But Pichetsrieder (the deposed Anglophile
chairman of BMW Group) I have heard nothing about - can any of our German
members tell me what he is doing?  This weekend the entire non-German board
of Rover has resigned - this includes the Director of Sales and Marketing
and Director of Production.  It is difficult to imagine a worse situation
other than the complete collapse of both Rover and BMW.

BTW any of you into shares might like to have a good look at Unipart -
their long term future should be good and are probably relatively cheap at
present as John Neill has just given a 'profits' warning due to the
production order problems at Rover.

IMHO - Mike Wattam
Chairman - Triumph Stag Register