Rover to go into administration

Adjust font size:

Manufacturing News, Source : TheManufacturer.com
Published : 08 Apr 2005 13:58

Beleaguered British car maker MG Rover has said it will appoint administrators for the business later on Friday.

Rover’s 6000 Rover workers are yet to find out if the firm will continue making cars.

A Rover taskforce has been set up consisting of the leaders of regional development agency Advantage West Midlands and business group the CBI, and will meet on Monday.

Tony Woodley of the T&G union said he had met the proposed 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.

In the meantime, the Government has offered a £40 million support package for the firms that supply MG Rover. Mrs Hewitt is expected at Rover’s Birmingham plant today (Friday) and has pledged to do “absolutely everything I can” to help the 6000 Rover workers and other jobs in the area reliant on Rover business.

The Government had been in last minute talks with the Shanghai Automotive Industry Corporation (SAIC) to secure Rover’s future. A bridging loan was offered but SAIC would not agree to its terms, which stated that the offer was only for one year; SAIC wanted solvency to be guaranteed for two years.

Comments on this story

click here to add a comment

You must be registered & logged in to add comments
Please register

already have an account and just want to login?

email address
password
remember me