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*You can watch the news report with the "watch news in video" at the top right of the web page.*

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BBC NEWS (www.bbc.co.uk)

Union gives warning on Rover deal

About 6,000 are employed at Rover in Longbridge, Birmingham
The leader of one of the main unions at MG Rover has vowed to fight any forced job losses included in a link-up with China to save the car firm.
UK officials are in talks with a Chinese car firm which could invest up to £1bn in MG Rover, and the UK is offering the Chinese a £100m loan.

Tony Woodley of the Transport and General Workers' Union backed a deal.

But he told the BBC no-one should be allowed to "waltz in and just walk away sacking British workers".

UK trade officials are in talks with the state-owned Shanghai Automotive Industrial Corporation (SAIC).

BBC correspondent Bob Sinkinson said the proposed loan of about £100m was intended to quell Chinese worries about the Birmingham firm's long-term viability.

The Chinese link-up is seen as necessary to secure Rover's long-term future and help it launch a new range of cars.

Chinese cash

Chancellor Gordon Brown has already vowed to do everything possible to secure a tie-up between MG Rover and SAIC, which unions believe is the only way Rover's future will be secured.

Under the proposed venture, the Chinese company would inject cash into Rover to help it develop new models and in return SAIC would secure ownership rights to Rover's more advanced technology.

A DTI spokeswoman said: "Throughout this process the government has done all it can to help support the joint venture between MG Rover and SAIC.

"A team of DTI officials is in China this weekend holding discussions with SAIC. We are also in touch with the Chinese government.

"If it appears that a commercial deal will be agreed both MG Rover and SAIC are aware that the government would consider the option of providing a bridging loan facility to that deal. No formal decision has been made."

The government was also considering a package of support and financial assistance for the workers, their families and local communities if the deal does not go ahead, the department added.

The TGWU's Tony Woodley had said earlier he welcomed the DTI comments: "This is the right move for MG Rover, for the Midlands and for manufacturing industry as a whole."

"It will help keep MG Rover in business until the Is are dotted and the Ts are crossed on the deal with Shanghai Automotive."

But he told BBC Radio WM he did not want the Chinese corporation to run down Rover's UK operation.

"No enforced redundancies. That's where our position is," he stressed.

MG Rover employs about 6,000 workers at Longbridge but thousands more rely on the company for their jobs, working in local service industries in the West Midlands.

The company was bought for £10 from German car maker BMW in 2000 by a consortium of West Midlands businessmen led by John Towers.
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other_rover
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ITV W Mids teletaxt: £400 million pension deficit threaten JV

According to ITV's local teletext pages the MGR chinese deal is threaten by a 400 million pound deficit in the pension fund. Apparantely SAIC have "said" that they don't want to get stuck with the deficit.

IMHO whoever mis-managed the pension fund should pay up. So who was it? The Government, BAE, BMW or the P4?????

God I wish they would make their minds up. Are the Chinese ready to become big players or do they just want to make cars for other people?
 

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Lots and lots of big companies have huge pension deficits.

What will the next news story be?

'Deal threatened because MGR cars pollute the environment.'

'Deal threatened because MGR staff don't speak Chinese'.

'Deal threatened because it is.'

Deal threatened because some w**kers who work in the British media want the company to go bust.'

:banghead:
 
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I'm beginning to doubt whether the deal will go through now. There appears to be far too many obstacles in the way. IMHO the goverment should renationalise it and pump billions into it to create a World Class motor company
 

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other_rover
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But if it is a JV then why do SAIC need to worry about the Pension problem? Something tells me that either ITV have got something wrong or it's now a takeover. I mean if they own the MG brand, the K series engine, the intellectual property to the R75 then what is left? Surely they will own MGR. Whilst the P4 will only have 25% of the company.
 

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Sejin26 said:
The government could buy a stake in it just like some other motor companies.
They can't..those days are over.

As for the defecit I find it hard to believe that its £400M when it was considerably reduced last year. The only possibility here is that the pension auditors screwed up. Or its a typo for £40M which is more realistic.

The recent collapse of Allders was partly over the fact nobody wanted to pick up the pension defecit which was only about £18M. Instead they let Allders sink and cherry picked the stores (and staff).

I don't believe SAIC can let MGR go down if it wants the dealer force intact but they may have already negotiated options on the technology transfer if MGR go belly up. From my days in negotiating licensing deals this will have definately been discussed and agreed for the transfers which have already taken place.

SAIC are now driving a very hard bargain. It depends how much they really need MGR and whtether or not somebody else is also in the frame. Let's be honest, both GM and FIAT could do with a £1billion injection in cash as well.
 

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rover_45
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GM don't want to do a deal with SAIC. Fiat have bigger problems then MG Rover. How many 54/05 Fiat's have you seen on the roads. I will tell you how many I have seen 0 in the last 3 months. Least I have seen some new MG's and Rovers.
 

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Are they dead?

Well,

It seems the press are having a field day trying to suggest that MG Rover are on the brink of going into administration.

Why?

What are they trying to suggest? Has the deal collapsed?

Or are they being tossers as usual?

I want to know the truth, I don't usually believe all that is said, but its coming thick and fast.

What do you lot think?
 

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other_rover
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xerif said:
SAIC are now driving a very hard bargain. It depends how much they really need MGR and whtether or not somebody else is also in the frame. Let's be honest, both GM and FIAT could do with a £1billion injection in cash as well.
I must admit the thought had crossed my mind that SAIC may be eying up Fiat instead! But then why put all you eggs in one basket? Fiat/ Lancia/ SAIC and MGR could be quite a force.
 

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iaan said:
April 20th. Definitely. Maybe.
If this is the case, then SAIC and MGR should issue a joint statement to say that "something positive will occur on Aprl 20th". It would make a lot of rubbish go away.
 

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As there hasn't been one single statement from MGR themselves...only from 'Government Sauces' (sic) we can only assume the Government want us to believe they are in trouble...and they'll be shining white knight coming through to save the day...yawn yawn...it's all electioneering...don't worry...they probably got the hint about pension and redundancy issues off here...when some one queried who was responsible. I've noticed a few times things are discussed on here then a few days later...an 'inside sauce' sya blah blah

When can you tell if a politician is telling a lie........you can see the lips move!

Well if Tony Bliar can't feed our schoolchildren properly..what chance have they of looking after industry??!!!

Does Jamie Oliver like MG's????
 

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MGROVERnut said:
Apparantely SAIC have "said" that they don't want to get stuck with the deficit.

QUOTE]

MGR and SAIC have said nothing to anyone - you can bet your life the deal is strong and this is all electioneering to safeguard unsafe seats in the West Midlands

Just wait for the 20th - it's only a few days now
 

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I know I should not worry and it is unlike me, but hearing so many reports makes one wonder. All of the main newspapers seem to be leading with this story where do they get their "facts" from? Should there not be a law against this kind of inacurate reporting?

If MG Rover where to fail in procedding with this deal with SAIC, what would be the most likely outcome?
 

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other_rover
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It's 17 day's away! My hair has litterally been going grey since MGR started negotiations! (I'm not joking either!)..and I'm only 27
 
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