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Cat will supply Rover parts

MG Rover Group has signed a 10-year global parts supply deal with Cat Logistics, starting in March 2002, which will help develop parts sales as a “key revenue stream”.

Rover announced two years ago that its contract with Unipart, signed in 1988, would not be renewed when it expires in 2002. But MG Rover is looking to give dealers “an element of continuity” by negotiating an all-makes parts supply deal with Unipart. It hopes the move will protect the investment in parts factoring made by several Rover dealers.

Cat Logistics, which also supplies DaimlerChrysler, Peugeot, Hyundai and Land Rover, will provide a worldwide parts support service, including logistics, parts marketing, purchasing and customer services.

Kevin Howe, MG Rover Group chief executive, said: “Full development of our parts business is a major element in our business strategy.

“With a turnover of around £250m per annum, parts represents a key additional revenue stream.”

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