BMW says it has drawn a line under its financial involvement with Rover, which cost it £2.5 billion and involved losses of £471m.
In a statement made to the annual general meeting yesterday Prof Joachim Milberg, chairman of the management board of BMW AG, announced that the company was close to selling its Midland Power Train engine factory and foundry at Longbridge to MG Rover.
The sale will give MG Rover control of its engine supply.
He said: “One year after selling Rover Cars and Land Rover we can now draw the bottom – financial – line beneath our involvement in Rover.” The total cost of BMW's association with the UK car maker was £2.5 billion.
He went on to say: “We are currently conducting concrete negotiations on the sale of Power Train, our supplier in Longbridge and I trust we will soon be arriving at the final result.”