Regrettably, the (British) Government and the administrators were informed this morning (local time) that Shanghai Automotive Industry Corporation (SAIC) "are not willing to acquire either the whole or parts of the MG Rover or Powertrain businesses on a going concern basis out of administration, nor are they willing to establish a UK joint venture incorporating the whole or parts of the MG Rover or Powertrain businesses."

The administrator, PriceWaterhouseCoopers (PWC), has told the (British) Government that it will not be applying for any further government loan to stave off redundancies at the company.

Secretary of State for Trade and Industry Patricia Hewitt said:

"This is devastating news for the workers, their families and the wider community. Over the last week the unions and Government have done everything possible to try and secure Longbridge's future as a going concern".

"The challenge is now for all of us to work together to support the workforce and their families and to take the steps that are needed to secure jobs and economic strength in the West Midlands economy".

"I will be speaking to the unions and all concerned today and a full announcement on the support package will be made shortly."

Patricia Hewitt Secretary of State for Trade and Industry

The news from last week regarding the financial problems of MG Rover:
Will We Ever See The Rover 75 Coupe?
10th April, 2005
Financial difficulties may take MG and Rover to the end of the road. Price Waterhouse Coopers have been appointed as Administrators of the company that manufactures both these iconic British marques ..... more