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This case covers certain major events between 1996 and the end of 1998 and reviews the progress BMW has made since the acquisition of Rover Group. It can be used on its own or in conjunction with the 1996 case ''The BMW Acquisition of the Rover Group'' (395-110-1) which contains additional material that students may find useful. Information is provided about BMW and Rover''s global market share, their major competitors in each model class, the company''s environmental policy and a vision of the car industry in 25 years time. The case includes coverage which can be used to concentrate students'' attention on strategic issues in the global car industry, such as the scale and resources required to compete effectively in the future. It can therefore be used in relation to both corporate and business level strategies at MBA level. Teaching objectives revolve around a complete understanding of the external environment and the strategic capability of BMW. It may be helpful for students to use either of the following two case studies as background reading: (1) Ads, R ''A Note on the World Automobile Industry'' in Johnson, G and Scholes, K ''Exploring Corporate Strategy: Text and Cases'' 4th edition, Prentice Hall, London, 1997, pps 637-653; and (2) ''The Global Car Industry: Preparing for the 21st Century'' (396-074-1). The case should focus students attention on the following issues: (1) the position of both BMW and Rover since the acquisition; (2) whether Rover cars should be retained in BMW''s portfolio; (3) the questions facing BMW following the Mercedes/Chrysler deal; and (4) the overall position and options for BMW in 1999.