MG Rover Plays Its Final Act
Some 5000 MG Rover workers received letters on Monday morning telling them that they no longer had a job. Despite false hopes that were fanned by local and national politicians fearful of the effects of closure in the run up to a national election, no further delay was possible in announcing the fact that China's Shanghai Automotive Industry Corporation was no longer interested in purchasing MG Rover, which was effectively bankrupt.
SAIC confirmed it would not buy the British company in writing at the end of last week, and the administrators appointed a week earlier had no option but to immediately fire 5000 of the 6000 workforce at MG Rover's Longbridge plant. The workers had only received last week's pay because the government had stepped in with a loan. The loan, and two visits by Prime Minister Blair and his finance minister, could have been influenced by the fact that Longbridge is surrounded by constituencies held by members of Parliament from Blair's Labor party. All of them are standing for re-election on May 5, and one cynical newspaper said the only jobs the government wanted to save were those of its own candidates.
PWC, the administrators looking after the remains of MG Rover, say they have had plenty of interest in the firm or parts of it, but none that would keep the car plant as a going concern. Now there will be a sale of the company's viable assets, the most important of which is the MG name and business.
Owners of MGs and Rovers up to three years old are currently without a warranty on their cars, and they have been advised to look at the possibilities of buying independent warranty coverage. Dealers have been left in the lurch, but as yet there are no big price reductions at dealerships - values of used models in auctions have already fallen, however. -
Some 5000 MG Rover workers received letters on Monday morning telling them that they no longer had a job. Despite false hopes that were fanned by local and national politicians fearful of the effects of closure in the run up to a national election, no further delay was possible in announcing the fact that China's Shanghai Automotive Industry Corporation was no longer interested in purchasing MG Rover, which was effectively bankrupt.
SAIC confirmed it would not buy the British company in writing at the end of last week, and the administrators appointed a week earlier had no option but to immediately fire 5000 of the 6000 workforce at MG Rover's Longbridge plant. The workers had only received last week's pay because the government had stepped in with a loan. The loan, and two visits by Prime Minister Blair and his finance minister, could have been influenced by the fact that Longbridge is surrounded by constituencies held by members of Parliament from Blair's Labor party. All of them are standing for re-election on May 5, and one cynical newspaper said the only jobs the government wanted to save were those of its own candidates.
PWC, the administrators looking after the remains of MG Rover, say they have had plenty of interest in the firm or parts of it, but none that would keep the car plant as a going concern. Now there will be a sale of the company's viable assets, the most important of which is the MG name and business.
Owners of MGs and Rovers up to three years old are currently without a warranty on their cars, and they have been advised to look at the possibilities of buying independent warranty coverage. Dealers have been left in the lurch, but as yet there are no big price reductions at dealerships - values of used models in auctions have already fallen, however. -