MG-Rover.org Forums banner
1 - 20 of 20 Posts

·
Registered
Joined
·
21,131 Posts
Excellent... and very encouraging to note 'the government had agreed to work with the administrator and unions who will be developing "with all reasonable speed" a realistic business proposition for Shanghai Automotive Industry Corp (SIAC) and other possible purchasers to consider.'

Regards

John
 

·
Registered
cityrover
Joined
·
4,366 Posts
Discussion Starter · #4 ·
Here's the article from the BBC

MG Rover gets £6.5m loan lifeline

Six thousand jobs are at risk
The government says it has offered a £6.5m loan to prevent redundancies being made at car manufacturer MG Rover on Monday.
Trade and Industry Secretary Patricia Hewitt said the funds had been agreed to avoid job losses "while efforts are made to keep the business together".

Six thousand jobs are at risk if the company's plant in Longbridge, Birmingham, closes down.

The move followed weekend talks between Ms Hewitt, administrators and unions.

She said the government had agreed to work with the administrator and unions who will be developing "with all reasonable speed" a realistic business proposition for Shanghai Automotive Industry Corp (SIAC) and other possible purchasers to consider.

The loan would allow wages and other expenses to be paid for a week, said a Department of Trade and Industry spokeswoman. There would then be a review in seven days.

Some of Rover's suppliers are already laying off staff.

Transport and General Workers' (TGWU) union general secretary, Tony Woodley earlier said he hoped a rescue deal with a Chinese car-maker could yet be reached.

"In my view, it's the only hope for 6,000 workers, and that's why we don't give up, we don't move away from an opportunity that's as yet still there," Mr Woodley told BBC News 24.

'Fighting chance'

"The business logic is still strong, as long as the government now backs the efforts we're putting in with the administrator, and indeed they are doing that."

He said, before going into the talks at the DTI in London, that government help would give MG Rover a "fighting chance" of survival.

MG Rover went into administration after rescue talks with SAIC failed on Thursday, throwing its entire future into doubt.

If the Government takes sensible measures to bring about such a deal, I will support those measures

Michael Howard


Suppliers 'lay off workers'

Factory workers are to attend a mass meeting at the firm's Longbridge plant on Monday to hear of efforts being made to save their jobs.

The government says it will do all it can to support Rover and its suppliers.

But Tory leader Michael Howard and Liberal Democrat leader Charles Kennedy have both accused ministers of acting too slowly.

But Tory leader Michael Howard and Liberal Democrat leader Charles Kennedy have both accused ministers of acting too slowly.


In total 6,000 Rover workers face losing their jobs

Earlier on Sunday, Mr Howard told GMTV the prime minister and chancellor had a share of the blame for the crisis facing Rover.

House meeting

The government would have been aware of the situation at Rover for at least a year, said Mr Howard, but had "got involved at far too late a stage".

Mr Howard later arrived in Longbridge and went into the home of a local councillor where he spoke to a group of around eight MG Rover employees.

Afterwards Mr Howard said he was "deeply concerned" at the situation at Longbridge and the possible consequences for workers there and elsewhere.

He said he "devoutly hoped" the situation could be resolved.

"If the government takes sensible measures to bring about such a deal, I will support those measures," he said.

But he added it would be "very unfortunate" if uncertainty was prolonged or if workers were given false hopes which could not be achieved.

Support package

Lib Dem leader Mr Kennedy told the BBC's Breakfast with Frost programme the government should have acted earlier by assessing and negotiating with the Chinese "much better".

The criticisms come after Chancellor Gordon Brown announced an inquiry into the crisis.

He indicated claims the Phoenix consortium - which bought the company for £10 when BMW pulled out in 2000 - made millions from the car maker might be part of the inquiry.

There are no claims of illegal practices but trade unions complained in 2003 about a £12.6m pension fund set up for executives.

The government has announced a £40m support package for suppliers to the industry.

Rover's workers have been told to turn up for work on Monday.
 

·
Registered
mg_zr
Joined
·
370 Posts
Would the gorernment be doing this if they though MGR were dead?

or are they prolonging the inevitable.

I sincerely hope it's the former and that there is a sound change of MGR returning to business as normal (or as close as possible).
 

·
Registered
cityrover
Joined
·
4,366 Posts
Discussion Starter · #6 ·
Sounds like the want to help PWC ensure it is a going concern - either for PVH or A N Other

Might there be an election looming?
 

·
Registered
cityrover
Joined
·
4,366 Posts
Discussion Starter · #8 ·
Sorry didn't spot the earlier thread about "no redundancies" - moderators free to merge threads. The good news was somewhat hidden
 

·
Registered
Joined
·
6,157 Posts
£6.5m...? It's good, but it's a long way from the £100m we were talking about a few days ago... £93.5m away...
 

·
Registered
Joined
·
1,428 Posts
That's the problem - if it wasn't for the election you'd know there was genuine hope but given the election it might just be a ploy to retain votes in West Midlands. We gave you every assistance, Gordon Brown in China, £40+ Million to suppliers, £6.5 million in order to achieve a sale as a going concern etc. This £6.5m, welcome though it surely is, remains a lot less than loose change in Government terms. At least MGR are guaranteed another week to come up with something.

Anthony.
 

·
Registered
mg_zs
Joined
·
1,322 Posts
Interesting how that two faced tw*t charless kennedy has changed his position from not giving MGR any money to accusing the government of acting to slowly!!
When he clearly wouldnt have acted at all!

IVAN
 

·
Registered
other_manufacturer
Joined
·
1,496 Posts
IVAN MG said:
Interesting how that two faced tw*t charless kennedy has changed his position from not giving MGR any money to accusing the government of acting to slowly!!
When he clearly wouldnt have acted at all!

IVAN
Now, if it had been his favourite distillery......:beer:
 

·
Registered
Joined
·
3,931 Posts
This was on BBC News 24 tonight. I have to say it was very positive sounding, Patricia Hewitt basically said the Government is committed to keeping Longbridge going until either SAIC does the deal or another buyer is found.

This is very significant. To me she sounded like they've committed to keeping the company going. Hooray!!
 

·
Registered
Joined
·
1,496 Posts
*DLN* said:
All assistance the Government is currently offering MGR are in fact loans that MGR will have to repay.

They are not handouts !
So - therefore, the Govenment, after seeing the books, have come to the conclusion, that there is future in MG-Rover!

They would not 'loan' the money if hey thought there was no chance in getting it back!

This 6.5m might be more significant than we thought
 

·
Registered
Joined
·
5,424 Posts
...what I'm not clear on .... is how the £6.5m is any different to the £100m... ie the govenment is now giving £6.5m to a private company to stop it going into recievership.... but they couldn't "loan" a £100m to a private company for more 2 years, to enable it to contiue trading ?

...surely this £6.5m is a breach of the eurpean anti-competion laws ?
 

·
Registered
Joined
·
1,496 Posts
Is it possible, that this is some kind of back-door nationalisation?

Naturally,I would not support this in most cases, goes against my free-market insisnts, but when MG-Rover is involved, its different
 
1 - 20 of 20 Posts
Top