Dream turning into a nightmare?

1258 Views 12 Replies 12 Participants Last post by Stephen K. Hone, Apr 5, 2005

colin d

Discussion Starter · Apr 5, 2005

With press stories that MGR could run out of money by Friday where does that leave my order for a new 75 due for delivery in two weeks? My dealer says there is no problem, SAIC deal on track etc, but they would say that wouldn’t they. How many others who read these forums have new cars on order from MGR and what have they been told?

My concern is that I will have a new car that will have no ongoing manufacturer warranty and parts support and which will be valueless in three years time when I change it. Legal advice from a motoring organisation is that if I cancel I will lose my deposit as nothing has been announced, but that would be preferable to taking the financial hit of paying for a new car that will be unsellable if MGR go under.

Save

1 - 13 of 13 Posts

Diesel45

· #2 · Apr 5, 2005

colin d said:
With press stories that MGR could run out of money by Friday where does that leave my order for a new 75 due for delivery in two weeks? My dealer says there is no problem, SAIC deal on track etc, but they would say that wouldn’t they. How many others who read these forums have new cars on order from MGR and what have they been told?

My concern is that I will have a new car that will have no ongoing manufacturer warranty and parts support and which will be valueless in three years time when I change it. Legal advice from a motoring organisation is that if I cancel I will lose my deposit as nothing has been announced, but that would be preferable to taking the financial hit of paying for a new car that will be unsellable if MGR go under.

Your car won't be unsellable. There are plenty of third party warranty vendors, a warranty is just a type insurance policy based on risk. If the worst happens then you could weigh up the cost of buying a third party warranty for three years against the size of your deposit.

If there is a price crash about to happen due to this situation, then I will be waiting with my money.

Save

James Riley

· #3 · Apr 5, 2005

I wouldnt worry about it at all. The parts situation will never happen and you are getting a very fine car in the 75, regardless of the current financial worries the company has.

Stick with it and enjoy what is and will be a future classic car. It's still one of the best in the market.

Save

MG ZR VIRGIN

· #4 · Apr 5, 2005

I sympathise with you. My new ZR is a week away and I am in the exact same dilemma. At least in your case you are having communication with your dealer...mine refuses to ring me back. MGR are supposed to be making a statement today, so I think I will see what they have to say and go from there. The only problem is that there is not much on the market to compete for the price.

Save

MGTurbo

· #5 · Apr 5, 2005

And this is the exact reason why MGR is in the state it is in today, because of all these scare stories (true or not) putting buyers off the cars.

Save

JohnSwitzer

· #6 · Apr 5, 2005

But the key question is, will you still be here on Friday, or could you have been wiped out by a rogue meteorite on a collision course with planet earth?

That's what I'd be more worried about, as there is an infinitely greater chance of that happening than MGR running out of money any time soon.

John

Save

Walt

· #7 · Apr 5, 2005

Arms sales connection

I haven't read all the posts on this topic so I'm not sure whether anyone has pointed this out, but there could be bigger issues at stake:

China wants arms from Britain/Europe and is playing hardball with the negotiations to get its way.

George W. doesn't want it to happen (i.e. has told Blair not to do it).

Blair is stuck in his usual stance of trying to please everyone and will end up satisfying no-one (except George W to whom he can't say no).

That's why the governments are in deep discussions.

If MG Rover goes under, point the finger at Blair.

See less See more

Save

xerif

· #8 · Apr 5, 2005

I'd panic not. If they go down this weekend you can probably walk away as the order is not going to be completed.

However I very much doubt that this is going to happen. In fact by Friday, squeezed in between the funeral, marriage and election will be a brief announcement to say the future is still going to be MGR and that the future is assurred.

And I'll be pressurising her nibs into buying an MG ZT-T...

Save

iga

· #9 · Apr 5, 2005

Walt said:
I haven't read all the posts on this topic so I'm not sure whether anyone has pointed this out, but there could be bigger issues at stake:

China wants arms from Britain/Europe and is playing hardball with the negotiations to get its way.

George W. doesn't want it to happen (i.e. has told Blair not to do it).

Blair is stuck in his usual stance of trying to please everyone and will end up satisfying no-one (except George W to whom he can't say no).

That's why the governments are in deep discussions.

If MG Rover goes under, point the finger at Blair.

I think this might be a conspiracy theory too far!

Save

Stephen K. Hone

· #10 · Apr 5, 2005

colin d said:
With press stories that MGR could run out of money by Friday where does that leave my order for a new 75 due for delivery in two weeks? My dealer says there is no problem, SAIC deal on track etc, but they would say that wouldn’t they. How many others who read these forums have new cars on order from MGR and what have they been told?

My concern is that I will have a new car that will have no ongoing manufacturer warranty and parts support and which will be valueless in three years time when I change it. Legal advice from a motoring organisation is that if I cancel I will lose my deposit as nothing has been announced, but that would be preferable to taking the financial hit of paying for a new car that will be unsellable if MGR go under.

Have faith this deal WILL be done! (My opinion BTW)

Save

Diesel Dick

· #11 · Apr 5, 2005

Dont worry. the Government have offered a bridging loan to keep MGR solvent, if SAIC sign on the line.

DD

Save

Ben25

· #12 · Apr 5, 2005

I don't know whether MGR will run out of money any time soon but I have noticed that BBC news have now retreated from the 'receivers in by Friday' claims of yesterday and are now saying 'by the end of the month' which I suspect that that is a tacit admission that they don't know much either.

The fact that all the leaks about this deal appear to be coming out of the DTI and from 'sources' at SAIC suggest to me that a. SAIC are trying brinkmanship in the negotiations and b. the DTI (the civil servants rather than the politicians) have made it clear that they don't think the government should help save Rover. Given this it would suit them nicely if they could talk the deal down, thus saving (in their eyes) £100m.

Really we just have to wait and see. I am concerned about where this JV is heading as it seems to be looking more like a takeover from what we have heard (although I will wait to hear the details before sharpening my knives too much) but I do think that it will happen. I to will lose my warranty if MGR goes down but at present this seems a fairly minor concern against the bigger picture.

See less See more

Save

Stephen K. Hone

· #13 · Apr 5, 2005

Ben25 said:
I don't know whether MGR will run out of money any time soon but I have noticed that BBC news have now retreated from the 'receivers in by Friday' claims of yesterday and are now saying 'by the end of the month' which I suspect that that is a tacit admission that they don't know much either.

The fact that all the leaks about this deal appear to be coming out of the DTI and from 'sources' at SAIC suggest to me that a. SAIC are trying brinkmanship in the negotiations and b. the DTI (the civil servants rather than the politicians) have made it clear that they don't think the government should help save Rover. Given this it would suit them nicely if they could talk the deal down, thus saving (in their eyes) £100m.

Really we just have to wait and see. I am concerned about where this JV is heading as it seems to be looking more like a takeover from what we have heard (although I will wait to hear the details before sharpening my knives too much) but I do think that it will happen. I to will lose my warranty if MGR goes down but at present this seems a fairly minor concern against the bigger picture.

This deal will happen. It won't be a takeover. Probably, as pointed out by another poster, there will be SAIC and MG-R/PVH much as before. But there will be a third Entity and that will be the Joint venture Company split between SAIC and MG-R. What the actual % the split will be, we do not know. And outside of DTI, MG-R, and SAIC no one does. I tend to think it will be a lot more favourable to MG-R than people might imagine.

MG-R and it's designers Engineers have toiled long and hard on upcoming products like RD/X60 and the heavily revised 75 in the pipeline. Don't you think that beyond SAIC paying for some of the costs incurred, they should also pay something for "the idea" ...the intellectual property. That is why we have Patents. You have brilliant idea, then people want it, and they are prepared to pay something for the right to use that idea. Once they have secured that right to use your ideas, then they must set up a means by which they manufacture products using those patented ideas.

Obviously MG-R have something the Chinese want, (and in turn MG-R needs Money) and I think SAIC SHOULD pay more than half for this project, simply because MG-R are the ones that developed and designed it. I say...REAP WHAT YOU HAVE SOWN MG-R! Don't give the farm away for nothing.

See less See more

Save

1 - 13 of 13 Posts

This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.

Top Contributors this Month