Concluding the story of Rover Group’s US Sterling misadventure. Why did it go so badly wrong?
A total of 14,171 cars found US buyers before the end of 1987, Sterling’s first year on sale in the US. This was a respectable number, if shy of the 20,000 to 23,000 sales that had been forecast by ARCONA. Even before the end of the year, however, reports were emerging about inconsistent build quality and poor reliability. There were many instances of faulty paintwork, poorly assembled interior trim and various electrical problems(1). Moreover, the quality of the dealerships was highly variable, many lacking the expertise(2) to deal effectively with issues that arose on the car.
We recall Rover’s US misadventure with Sterling and ask why it all went so badly wrong for the second time in a decade.
The 1981 Project XX joint venture agreement between Honda and Austin Rover to develop a large luxury saloon appeared to open the way for the British company to return to the United States. It was no secret that Honda was designing its version of the car, the Legend, with the US market firmly in mind. The Japanese company wanted to move upmarket, to raise US transaction prices and profitability in case volume import quotas might be imposed by the US government to protect domestic automakers. If the Legend was explicitly designed to appeal to US customers, then why shouldn’t the British version, the Rover 800, do likewise?