Honda Threat to Axe Rover Licences

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HONDA yesterday cast fresh doubt on the future of Rover, warning that it may scrap the licensing agreements and components deals that underpin the bulk of Rover's existing car production in the wake of its pounds 800m sale to BMW of Germany.

The Japanese company has already unravelled its equity links with Rover in protest at the sale by British Aerospace to a German competitor. It is now considering whether to maintain the agreements that will enable Rover to launch a replacement for the 200/400 series scheduled to appear at the end of this year.

Honda is also examining whether to build its own pressings plant at its Swindon car factory in order to end its …