A bridge to far.........?

[Tankus]

MG Rover suspends production

The Independent

By Alan Jones, PA

07 April 2005

MG Rover today suspended production at its UK factory, blaming "isolated" component supply problems.

The car firm, which is involved in crucial talks with a proposed Chinese partner in a bid to secure its future, said cars were not being built on the day shift at its plant in Longbridge, Birmingham.

The company said the suspension was temporary and it remained optimistic that production would return to normal.

A company statement said: "Given the amount of negative media coverage this week it is no surprise that we have suffered a few isolated component supply problems. For this reason we have temporarily suspended production."

None of the 6,000 workers at the plant were sent home and were said to be "keeping busy" despite the halt to production of cars including the Rover 25, 45 and 75 and MG sports cars.

Talks over a possible £100 million Government bridging loan continued today as a team of officials from the Department of Trade and Industry remained in Shanghai.

Should Bliar throw a £100m to tide them over for production (until after the elections )...... Or force the hand of the 4 directors who have made £40m since the £10 buy out ....... to reinvest ...(is that possible ..?)

Bad news for the midlands either way ....... Ill bet the Chinese will walk , and get what they want dirt cheap when it goes into administration.....

[-pops-]

The main problem with the company is that it is so out of date. When was the last time it introduced a new model? Other car manufacturers are bringing in new designs every few months, not every few decades.

Most, if not all, of their models could count as classic cars by today's standards.

[dadyassa]

Too many chiefs and not enough earners :unsure:

[andsome]

The main problem with the company is that it is so out of date. When was the last time it introduced a new model? Other car manufacturers are bringing in new designs every few months, not every few decades.

Most, if not all, of their models could count as classic cars by today's standards.

Not only this, they have had an awful lot of trouble with head gasket seals breaking down. Watchdog ran a feature on the subject, but Rover denied that there was a problem. Land Rover were using the same sealing method, and they admitted that there was a problem.

[Hurdy]

I grew up a ten minute 'bus ride from Longbridge.

It dominated everything in the locality in the Seventies.

From the hooter in the morning - which us kids used as a morning alarm call - to 1 in 3 Dads working there.

I know it all went sour but it's sad really.

Another nail in the demise of British industry.

[Tankus]

R.I.P. ...

now the vultures circle ...... the knock on with suppliers will be huge

[Hurdy]

the knock on with suppliers will be huge

Absolutely.

[Tankus]

be some political fall out too ...all labour seats ......... ..

[Hurdy]

Nah! unfortunately it's a 'dyed-in-the-wool' or 'too-thick-to-think-for-yourself' neighbourhood.

Depending on your outlook.

[deuces wild]

Why is it the job of any government to support a failing business?

I realize the financial impact of a company leaving, but fair play is fair play. If a the leaders of a company drive it into financial ruin, is that the taxpayers fault?

Should all businesses also then receive equal compensation?

The US government has given billions in subsidies to failing businesses, including airlines. Not good as it is our tax dollars going to support them.

I say ta-ta to them if they don't have the smarts to make it on their own.

[Tankus]

I stayed at Solihull at a student dig, as a mate of mine was at Aston in the early 80's ... It was a bit Beirut even then .....

Longbridge looses 6,ooo , with a possible 18,ooo in suppliers ..... Hewitt gaff on news-night ...tonight ...she stated that they had gone into administration , .....with workers then phoning up BBC2 from the shop floor ,asking "what the hell are they doing then, on the production line " ........ total confidence and credit loss now

Price Waterhouse called in for advice only ...but it looks like toast .....

Nasty way for the workforce to find out ... I wonder how they are covered for their pensions , ... I think I heard that there was a big black hole ,which is why the Chinese backed off , once they checked the books ...Far to many long term financial liabilities ......

I wonder if Red Robbo is still claiming his pension ....?

Boy was it a sick dog then

[artist]

Sad really - Rover Cars had a bit of an elite reputation years ago. I worked for a garage that had a Rover dealership - also Triumph - and a lot of the 'top of the range' rovers were used by managing directors.

The problem seems to be that there hasn't been much of a 'move with the times' policy going on there and the cars are a bit dated - and expensive.

[expertec]

Sad but true. :(

[-pops-]

:D Excellent!

[Besty]

Who cares (part from the workers)? It was a failing company that showed no new initiative.

[Gandalph]

It was predicted as far back as the late sixties and early seventies that if the British Car Industry didn't start to put the technology into their vehicles that they were doomed to failure in the long term. They didn't so as a result they have failed.

Exactly the same thing happened to the Motorcycle Industry, when Honda and Yamaha and the likes started to introduce the 'Push Button Start' onto their bikes the first people to go across from Triumph and BSA, Norton and the likes were the Police Force. I remember they said that the 'Kick start' was unreliable. Having had a variety of British bikes myself I would totally agree with that statement.

[Tankus]

whup..............................................!

Fresh from planting the pope , Laurel and Hardy have flown into Brum to take charge , and shake down some Chinese ...........

Hewett pledges £40m for retraining ....

[Gandalph]

I heard the other night that the Chinese had pulled out when they were told about the £100 Million deficit in the Pension Scheme. I wouldn't like to buy a Company and find that I had to fix that on top of everything else.

[romanab]

They may not have introduced any totally new models but the Rover 75 V8 is as good as anything in it's class :o

[artist]

They may not have introduced any totally new models but the Rover 75 V8 is as good as anything in it's class  :o

True enough - but the majority vote with their feet and buy eslewhere.

[andsome]

They may not have introduced any totally new models but the Rover 75 V8 is as good as anything in it's class  :o

You obviously did not see the Watchdog programme that I referred to above, concerning faulty cylinder head gaskets, a fault which Rover failed to address or even acknowledge. Sales fell even faster after this report.

[-pops-]

They may not have introduced any totally new models but the Rover 75 V8 is as good as anything in it's class  :o

Don't forget we live in a "throw-away" society and any design more than about six months old is thought of as old fashioned. Excellent as the car may be (but, as you see, there are those who disagree) it has been around far too long to have any appeal to the car buying public (or the fleet manager).

[Tankus]

hmmm......... 10 labour marginals in this area ....... but then thats not the real reason our Rev flew in straight there from the Vat. ........ is it ...?

The guardian MG Rover was bought from BMW by the "Phoenix four" Midlands businessmen less than five years ago.

Ms Hewitt refused to rule out a formal investigation into the actions of the Phoenix four but said it was first up to the administrators to report. "We have got to wait on that," she said. The four paid £10 for MG Rover, but the business came with a multi-million pound dowry of cash and assets. BMW gave MG Rover an interest-free loan of £427m, repayable by 2049, and handed over cars made, but not sold, valued at £385m.

The business also came with more than £112m of cash. BMW gave the car company a further £65m in cash when it handed over the Powertrain business in 2001.

Subsequently Phoenix Venture Holdings (PVH), the private company controlled by the Phoenix four, raised more than £200m by selling off Longbridge land and buildings, the parts business and technology to SAIC.

Something very smelly in the centre ........

[Tankus]

  Auto Industry news    Trade and Industry Secretary Patricia Hewitt set out details of a substantial support package on 8 April following the failure of MG Rover and the Shanghai Automotive Industry Corporation to reach agreement on a joint venture. And on 10 April she announced a separate £6.5m in funding to the administrators of MG Rover to pay the firm’s wages and other costs for the week commencing 11 April, to facilitate further discussions with SAIC and the Chinese authorities.

Hmmm....... £6.5m per week in wages ....4 weeks to the elections .....I expect another £26m in administration package relief to tide the plant over till the elections ....?

All the workers were sent home this afternoon ....producton has ended ..a non productive plant will be a harder sell than a going concern ...as the bills will mount up by the minute .....!

....another sale for £10 ..with millions in liabilities ....I doubt it ...BMW gave a sweetner of close to £1b to get shot of it ..that kept the plant going for 5 years ...thers nothing left

The Chinese are going to walk, and cherry pick the meat off the bones in the fire sale, all they have to do is wait ..(they would be daft not to ) ...The pension hole is to big ........ the true state of the situation is going to massaged until May 6th purely for political reasons l Then the table will be empty

I feel so sorry for the workers ...

[Tankus]

Breaking news Reuters

LONDON (Reuters) - China's biggest carmaker says it is highly unlikely to agree a rescue deal for MG Rover, as administrators battle to find a buyer for the firm which is losing up to 25 million pounds a month.

About 6,000 MG Rover workers could be made redundant next week if administrators fail to find new investors to inject more money into Britain's last independent carmaker when emergency government funding runs out, administrators PwC said.

MG Rover, which once made the iconic Mini and Land Rover models, collapsed on Friday after failing to agree a rescue deal with China's Shanghai Automotive Industry Corp (SAIC).

The dramatic move could hardly have come at a worse time for the Labour Party, which is campaigning on the back of its economic record to win re-election on May 5 and is defending a number of slim majorities in seats around MG Rover's main Longbridge plant in Birmingham.

PwC also said it had contacted SAIC, but the Chinese firm dashed hopes it could be persuaded to return to the table while the company was under administration, a form of bankruptcy where accountants are bought in to try to save the business.

"Our position is unchanged at the moment. We still believe it is highly unlikely that SAIC would want to be involved with MG Rover while it is under administration," an SAIC spokesman said

The European Commission said it expected the government to notify it about the emergency funding within the next 24 hours, adding that in theory no aid can be paid out if it has not been notified.

Workers at Longbridge fear thousands of jobs will go. "There are blokes walking around in shock," said Pat Wilson 54, who has worked there for 32 years

Blimey ..for once ...I feel a bit of sympathy for Tone ...he must feel a bit like the fox in the caught in the headlight's ....

He calls an election ....and this timley blows in his face .... Euro ban on support aid funds ...... poss... 12 marginals at stake .... and not really much that he can do ....

"events ,dear boy, events"