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MG ROVER IN ADMINISTRATION - update !

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Receivers called in by MG Rover Rover says Longbridge could close, but it has not given a timescale The board of MG Rover has called in the receivers, UK trade and industry secretary Patricia Hewitt has said. It follows the apparent collapse of the company's planned tie-up with China's largest car marker Shanghai Automotive Industry Corp (SAIC). Shanghai Automotive Industry Corporation said it was because grant aid had not been forthcoming. MG Rover had earlier urged ministers to "make a decision" on a £100m bridging loan to help complete negotiations. It said directors were even willing to put up £10m of their own money to convince the Government of their commitment.Around 6,000 people are employed at the Rover plant at Longbridge in Birmingham - a key battleground in the General Election.A further 20,000 jobs are now in jeopardy in companies which supply parts and components to Rover, the UK's last bulk car manufacturer. The company had been losing huge amounts of money, not helped by a 17 per cent drop in sales in March compared to a year ago. The Department of Trade and Industry said the bridging loan was available, provided a deal was reached. MG Rover blamed "isolated" component supply problems for the decision to suspend production at Longbridge earlier today. It later emerged Wagon plc had put a halt to deliveries because of an oustanding bill of £900,000.Wagon supplies door frames, windscreen wipers and nuts and bolts among other items. Its total business with MG Rover last year was £14m. Cars built at Longbridge include the

Migration info. Legacy thread was 26700
 
Can't say I'm surprised. Uninspiring designs badly built with poor image, not the best formular for a sucessful car. Feel sorry for the workers but after all, it's business and not charity. Can't keep pumping money into a businees that loses money everyday just to keep workers employed forthe sake of it. BMW got their fingers burnt, got what they could possibly get out of it leaving the left overs, I'm surprised the current owners even thought they could pull it off by adding a few body kits on the existing models that nobody wanted!

Migration info. Legacy thread was 26702
 
You are right Butzi, even worse, the Directors bought Rover for £1 and took £40m in dividends in the last two years.... arguably if they hadn't milked it to that extent the company would still be liquid.

Interesting to see how they justified paying dividends when there was clearly not enough money to pay Rover's debts - so I hope they are punished

PS. Even worse - they are asking the Govt to help out with our money - what a nerve !

PPS. even worse than that - Patricia Hewett considered helping them !!!

LJ


Migration info. Legacy thread was 26707
 
UPDATE ! MG-ROVER ON E-BAY There was surprise in the car industry last night following the discovery that Midlands-based car maker MG-Rover is for sale on e-bay. The auction for the once-popular manufacturer began earlier this week and has so far attracted just one bid of £10, far short of the £1500 reserve. According to the brief description accompanying the auction, MG-Rover comprises "range of models, workforce (6500) and factory (1) currently located in South Birmingham (buyer collects)" whilst in a refreshingly honest 'faults' listing, buyers' attention is drawn to a number of points including "some models have dated appearance, problems with unions in past (fixed c1980), buyer must be aware that developing new medium car off existing large car platform seems to take ages". The surprising and radical sales technique will come as a shock to many industry observers but those hoping to snag a car making bargain may have their hopes dashed, as the closing section of the item description makes clear: "This item is advertised elsewhere. We reserve the right to withdraw it if the Chinese are still interested. We will not accept bids from anyone with less than 10 positive feedback or bidders based in Munich".
MGREbay.jpg




although thanks to
www.sniffpetrol.com
again for this piece (those guys are the best ! too much comedy !)


Migration info. Legacy thread was 26754
 
I'll chip in £2.50 so i can put then put another £10 Million in my pension Fund of someone elses money

Just need to find 3 chums with £2.50 each to make it fail

then we can all retire

I think thats the way it works,

Or did I read it wrong???


Migration info. Legacy thread was 26794
 

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