Disaster At MG Rover
The statement from today indicates survival
of the MG Rover Group is unlikely. The Chinese
connection had been seen as the saving grace for
the financially troubled company. It is now up to
the Administrators to determine what can be salvaged
from a once great name .... a name with a troubled past.
Stephen Walker .... Editor
15th April, 2005
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."
The news from last week regarding the financial problems of MG Rover: