Sterling Devaluation (Part Two)

Concluding the story of Rover Group’s US Sterling misadventure. Why did it go so badly wrong?

Sterling in hatch and saloon form. Image: Favcars

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.

The US Automobile magazine(3) ran a Sterling for a year and 24,500 miles to see how it would fare in the hands of a typical owner. The car had to Continue reading “Sterling Devaluation (Part Two)”

Sterling Devaluation (Part One)

We recall Rover’s US misadventure with Sterling and ask why it all went so badly wrong for the second time in a decade.

1987 Sterling 825 publicity shot. Image: Motor Authority

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?

The company’s previous attempt to return to the US market was in 1980 with the SD1 3500 model. Eleven hundred federalised versions of the car were shipped to America to Continue reading “Sterling Devaluation (Part One)”