MG Rover, Finally bankrupt?
4/7/05 | 05:20 PM
#1
Thread Starter
GTR Member
Joined: May 27, 2004
Posts: 4,749
Likes: 2
From: Manchester, England
This really pains me, the last large scale British car producer is about to go bump......
Last Updated: Thursday, 7 April, 2005, 23:00 GMT 00:00 UK
Confusion over MG Rover's future
Rover says Longbridge could close, but it has not given a timescale
The future of MG Rover and its 6,000-strong workforce is in doubt amid uncertainty as to whether the car maker has gone into administration.
While Trade Secretary Patricia Hewitt said on Thursday night that the firm had called in the administrators, MG Rover quickly denied this was the case.
The car maker said it had merely asked accountants to advise on its position.
With a month to the general election, the fate of MG Rover looks like turning into a major political issue.
Confusion
A spokesman for the Department of Trade and Industry said MG Rover chairman John Towers had phoned Ms Hewitt and "confirmed that the board had decided to call in the receivers".
Tony Woodley, general secretary of the Transport and General Workers Union also confirmed that he too had been told by Mr Towers that MG Rover had gone into administration.
"They [MG Rover] agreed the wording of the statement that was read out by Patricia Hewitt," Mr Woodley told the BBC.
Yet MG Rover told the BBC's business editor Jeff Randall that it was not in receivership.
The car marker said it had merely asked accountancy firm PricewaterhouseCoopers to advise on its financial position.
"It appears that Ms Hewitt has jumped the gun," said Mr Randall.
Earlier on Thursday, MG Rover was forced to halt all production at its Longbridge plant due to a shortage of certain parts, after a number of its suppliers refused to ship orders due to the ongoing financial uncertainty at the firm.
MG Rover was also continuing with protracted talks to form a life-saving partnership agreement with China's largest car maker Shanghai Automotive Industry Corp (SAIC).
In addition MG Rover was seeking a £100m ($187m) bridging loan from the UK government, which it says is vital to secure the deal with SAIC.
Last Updated: Thursday, 7 April, 2005, 23:00 GMT 00:00 UK
Confusion over MG Rover's future
Rover says Longbridge could close, but it has not given a timescale
The future of MG Rover and its 6,000-strong workforce is in doubt amid uncertainty as to whether the car maker has gone into administration.
While Trade Secretary Patricia Hewitt said on Thursday night that the firm had called in the administrators, MG Rover quickly denied this was the case.
The car maker said it had merely asked accountants to advise on its position.
With a month to the general election, the fate of MG Rover looks like turning into a major political issue.
Confusion
A spokesman for the Department of Trade and Industry said MG Rover chairman John Towers had phoned Ms Hewitt and "confirmed that the board had decided to call in the receivers".
Tony Woodley, general secretary of the Transport and General Workers Union also confirmed that he too had been told by Mr Towers that MG Rover had gone into administration.
"They [MG Rover] agreed the wording of the statement that was read out by Patricia Hewitt," Mr Woodley told the BBC.
Yet MG Rover told the BBC's business editor Jeff Randall that it was not in receivership.
The car marker said it had merely asked accountancy firm PricewaterhouseCoopers to advise on its financial position.
"It appears that Ms Hewitt has jumped the gun," said Mr Randall.
Earlier on Thursday, MG Rover was forced to halt all production at its Longbridge plant due to a shortage of certain parts, after a number of its suppliers refused to ship orders due to the ongoing financial uncertainty at the firm.
MG Rover was also continuing with protracted talks to form a life-saving partnership agreement with China's largest car maker Shanghai Automotive Industry Corp (SAIC).
In addition MG Rover was seeking a £100m ($187m) bridging loan from the UK government, which it says is vital to secure the deal with SAIC.
4/8/05 | 10:28 AM
#5
Joined: August 23, 2004
Posts: 3,599
Likes: 3
From: Bay Area, California
cuz they make that car only for europe in extremely small numbers... does mg still race?
4/8/05 | 11:52 AM
#6
Thread Starter
GTR Member
Joined: May 27, 2004
Posts: 4,749
Likes: 2
From: Manchester, England
Latest news from the BBC
MG Rover goes into administration
The outlook appears bleak for MG Rover's 6,000 workers
UK car maker MG Rover has gone into administration but Prime Minister Tony Blair has insisted a rescue deal with a Chinese investor is still possible.
Mr Blair said he had contacted Chinese officials on Friday and hoped a new deal could be put together.
Talks with Shanghai Automotive Industry Corp failed on Thursday, putting the future of MG Rover's Longbridge plant and 6,000 workers at risk.
Administrators said some potential buyers had already expressed interest.
Support
Workers face pension wait
"We will do whatever we can possibly do to safeguard the livelihoods and jobs of the people here," said Mr Blair.
Earlier, the government said a £40m support package had been put in place for the many firms in the area that supply MG Rover.
Ian Powell, an administrator with accountants PwC, said MG Rover would continue in business over the weekend and staff had been asked to return to work next week.
"We will be working closely with management, staff, unions, key suppliers, creditors and the government as the situation develops," he said.
"We have been approached by a certain number of people [about MG Rover] and we would be delighted to hear from more people."
Redundancy
With parts suppliers pulling credit and production stopped, industry analysts say the future of MG Rover is hanging by a thread.
One worker said staff had been told the company could not afford to pay them beyond Monday.
Workers said the redundancy terms on offer were £280 for each year's service, up to a maximum of 12 years.
"We have worked here and that's it - that's all we're getting. Everyone was angry like anything," said 28-year-old worker Adam Barnes.
"It feels terrible," added Ashley Wilkes, 43.
Going concern
In the morning, Trade & Industry Secretary Patricia Hewitt had held talks with workers at MG Rover's Longbridge plant in Birmingham.
She pledged to do "absolutely everything" she could to help them.
A Rover taskforce has been set up and its members, who include the leaders of regional development agency Advantage West Midlands and business group the CBI, will meet on Monday.
Tony Woodley of the T&G union said he had met the administrator, who "acknowledges that the priority for all of us is to explore every possibility of maintaining Longbridge as a going concern".
He said no decisions about the workforce's future would be made on Friday.
Political
Ms Hewitt said the government had made the £40m package available to MG Rover's suppliers to help them "find new business and secure their future".
An estimated 15,000-20,000 jobs in the area are supported by business from Longbridge.
She said some firms had already begun laying off workers.
Sited in an area of several marginal seats, the fate of MG Rover could also become an election issue, say correspondents.
But none of the major political parties has said the government should have put together the cash for a massive bailout.
For days, the government had been in intensive talks with both MG Rover and potential investor Shanghai Automotive Industry Corp (SAIC) to try to secure the firm's future.
A bridging loan was on offer, but only for a year and a limited sum - whereas SAIC would complete the deal only if MG Rover's solvency was guaranteed for two years.
Early on Friday John Towers, the chairman of Phoenix Venture Holdings - the consortium that bought MG Rover from BMW for £10 in 2000 - left Shanghai after the talks broke down, to return to London.
The day before, Rover - the last UK-owned volume car maker - had had to stop production as the supply of parts dried up.
"Yet again I'm having to write an obituary for another stalwart of the British engineering and manufacturing industry," said Tony Murphy of the Amicus union.
"Longbridge and the whole of the West Midlands are becoming ghost towns."
"We are going to fight for every job possible at Longbridge," said a spokesman for the T&G union.
"We don't want to see another supermarket built."
FIVE YEARS TO FAILURE
May 2000: BMW sells Rover to Phoenix Venture Holdings for a symbolic £10, saving thousands of jobs
Nov 2001: Rover says it will spend £300m on building a new medium-sized car
Nov 2003: Rover stops production for three days to clear a backlog of stock
Oct 2004: Rover reports a £77m loss for 2003, down from a £95m loss in 2002
Nov 2004: Rover says it is in talks with China's Shanghai Automotive about a £1bn joint venture
Feb 2005: Gordon Brown discusses Rover with Chinese leaders as concerns grow that the deal may be at risk
Apr 2005: The government offers a £100m bridging loan to Rover amid fears that the Chinese deal may collapse
Talks with the Chinese end without a deal, MG Rover is on the brink
MG Rover goes into administration
The outlook appears bleak for MG Rover's 6,000 workers
UK car maker MG Rover has gone into administration but Prime Minister Tony Blair has insisted a rescue deal with a Chinese investor is still possible.
Mr Blair said he had contacted Chinese officials on Friday and hoped a new deal could be put together.
Talks with Shanghai Automotive Industry Corp failed on Thursday, putting the future of MG Rover's Longbridge plant and 6,000 workers at risk.
Administrators said some potential buyers had already expressed interest.
Support
Workers face pension wait
"We will do whatever we can possibly do to safeguard the livelihoods and jobs of the people here," said Mr Blair.
Earlier, the government said a £40m support package had been put in place for the many firms in the area that supply MG Rover.
Ian Powell, an administrator with accountants PwC, said MG Rover would continue in business over the weekend and staff had been asked to return to work next week.
"We will be working closely with management, staff, unions, key suppliers, creditors and the government as the situation develops," he said.
"We have been approached by a certain number of people [about MG Rover] and we would be delighted to hear from more people."
Redundancy
With parts suppliers pulling credit and production stopped, industry analysts say the future of MG Rover is hanging by a thread.
One worker said staff had been told the company could not afford to pay them beyond Monday.
Workers said the redundancy terms on offer were £280 for each year's service, up to a maximum of 12 years.
"We have worked here and that's it - that's all we're getting. Everyone was angry like anything," said 28-year-old worker Adam Barnes.
"It feels terrible," added Ashley Wilkes, 43.
Going concern
In the morning, Trade & Industry Secretary Patricia Hewitt had held talks with workers at MG Rover's Longbridge plant in Birmingham.
She pledged to do "absolutely everything" she could to help them.
A Rover taskforce has been set up and its members, who include the leaders of regional development agency Advantage West Midlands and business group the CBI, will meet on Monday.
Tony Woodley of the T&G union said he had met the administrator, who "acknowledges that the priority for all of us is to explore every possibility of maintaining Longbridge as a going concern".
He said no decisions about the workforce's future would be made on Friday.
Political
Ms Hewitt said the government had made the £40m package available to MG Rover's suppliers to help them "find new business and secure their future".
An estimated 15,000-20,000 jobs in the area are supported by business from Longbridge.
She said some firms had already begun laying off workers.
Sited in an area of several marginal seats, the fate of MG Rover could also become an election issue, say correspondents.
But none of the major political parties has said the government should have put together the cash for a massive bailout.
For days, the government had been in intensive talks with both MG Rover and potential investor Shanghai Automotive Industry Corp (SAIC) to try to secure the firm's future.
A bridging loan was on offer, but only for a year and a limited sum - whereas SAIC would complete the deal only if MG Rover's solvency was guaranteed for two years.
Early on Friday John Towers, the chairman of Phoenix Venture Holdings - the consortium that bought MG Rover from BMW for £10 in 2000 - left Shanghai after the talks broke down, to return to London.
The day before, Rover - the last UK-owned volume car maker - had had to stop production as the supply of parts dried up.
"Yet again I'm having to write an obituary for another stalwart of the British engineering and manufacturing industry," said Tony Murphy of the Amicus union.
"Longbridge and the whole of the West Midlands are becoming ghost towns."
"We are going to fight for every job possible at Longbridge," said a spokesman for the T&G union.
"We don't want to see another supermarket built."
FIVE YEARS TO FAILURE
May 2000: BMW sells Rover to Phoenix Venture Holdings for a symbolic £10, saving thousands of jobs
Nov 2001: Rover says it will spend £300m on building a new medium-sized car
Nov 2003: Rover stops production for three days to clear a backlog of stock
Oct 2004: Rover reports a £77m loss for 2003, down from a £95m loss in 2002
Nov 2004: Rover says it is in talks with China's Shanghai Automotive about a £1bn joint venture
Feb 2005: Gordon Brown discusses Rover with Chinese leaders as concerns grow that the deal may be at risk
Apr 2005: The government offers a £100m bridging loan to Rover amid fears that the Chinese deal may collapse
Talks with the Chinese end without a deal, MG Rover is on the brink
Thread
Thread Starter
Forum
Replies
Last Post
PonyMuscletang13
2010-2014 Mustang
4
9/29/15 09:40 AM