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News of  December 05, 2001

MG ROVER Creates New Parts Company

MG Rover Parts, a newly formed company of MG Rover Holdings, has finalised its agreements with Caterpillar Logistics to build a world wide parts operation.

The new company will open its doors for business in March 2002. The deal creates the infrastructure for MG Rover to fully develop the commercial benefits of its parts operation, which has an expected turnover in the region of £250 million.

Unipart, which has supplied parts for Rover and MG cars since 1987, will continue to work alongside MG Rover Parts. It will provide 'legacy' parts, for cars registered prior to 1995 and its own 'All Makes' parts range. This, together with MG Rover's own bumper to bumper original range, will give MG Rover dealers an unprecedented parts choice from a single source, which covers over 100,000 items.

Kevin Howe, MG Rover Chief Executive said: "Taking full control of the parts operation is strategically very important for the business. It allows more control over costs and opens up new marketing opportunities. The full benefit of the additional revenue will be seen in the development of both our company and the dealer network."

Bill Springer, Vice President, Caterpillar said: "We're really excited to be working with MG Rover and its dealers. We can certainly contribute to the business, with our own expertise and knowledge. We've been impressed with the turn round at MG Rover and we're looking forward enormously to supporting the company's operations around the world."

(November 28, 2001)

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