MG-Rover.org Forums banner
1 - 8 of 8 Posts

·
Registered
Joined
·
4,977 Posts
Discussion Starter · #1 ·
Here's a thought. When MGR collapsed they had a fair sized stock of new, unregistered cars. The administrators helped to add to that stock a little by finishing off what they could last year.

We heard recently that this new car stock is now owned by NAC (whereas the stock of used cars is owned by a bank).

I wonder how much this stock of new cars is worth, and how much NAC paid for it? (I assume it was included in the £53m). Could this have been a way of maximising the assets of the old company and transfering those assets to the new owners? Selling those cars now must be bringing in a usefull income while NAC get ready to restart production. To some extent it will be bridging the gap until they can make and sell new cars.

Does anyone know how many new cars were unsold at the time of the collapase?

I'm not suggesting that MGR deliberately built as many cars as they could before they collapsed, but it can't have done NAC any harm... ;)
 

·
Registered
Joined
·
4,977 Posts
Discussion Starter · #2 ·
Here's a rough guess at the numbers:

At the end MGR was selling something like 100,000 cars a year. If the stock was 3 months worth, that's 25,000 cars.

If they got an average of £5000 each wholesale that would be £125m.

That can't be right, can it! £53m for the production equipment AND £125m worth of cars...

But even if it's only 1 months worth that's still over £40m at 5k each. :eek:

Did NAC buy the stock separately? Have I completely misunderstood the situation?
 

·
Registered
mg_zt
Joined
·
388 Posts
I thought that Capital Bank factored the cars - that is they paid MG Rover for each car as it came off the production line then selling it on to the dealers who were usually given so many months credit before having to pay.

There was a stock of cars sold by the receivers, presumably some not factored out to the bank, demonstrators, employee cars etc, but I imagine that Nanjing inherited all the engineering cars (some still parked at Longbridge) and the ones that pop up in photos in China. No doubt SAIC also aquired some as well.

I don't imagine Nanjing has any use for a large number of completed cars.

I believe that most of the new and prereg cars for sale are filtering out from Capital bank.
 

·
Registered
Joined
·
144 Posts
laser558 said:
I thought that Capital Bank factored the cars - that is they paid MG Rover for each car as it came off the production line then selling it on to the dealers who were usually given so many months credit before having to pay.

There was a stock of cars sold by the receivers, presumably some not factored out to the bank, demonstrators, employee cars etc, but I imagine that Nanjing inherited all the engineering cars (some still parked at Longbridge) and the ones that pop up in photos in China. No doubt SAIC also aquired some as well.

I don't imagine Nanjing has any use for a large number of completed cars.

I believe that most of the new and prereg cars for sale are filtering out from Capital bank.
You're mainly right. When MGR went into liquidation, the majority of new car stock was being held by Capital Bank on behalf of the dealers. When PWC managed to iron things out, these cars were then released to MGR dealers on quite strict terms from Capital Bank. The dealers had NO CHOICE but to take them under these terms after much painful negotiation by the MGR Dealer Council and Capital Bank. The truth was, the margin that (some) of these cars offered, particularly the bigger stuff, was actually LESS than that was available when MGR was afloat. So, in effect, the remaining dealers were having to buy their own cars back at new terms - and ones which weren't actually that great. Hence many dealers bailing out as soon as they could to obtain new franchises, cars being sold at silly money (for heavy losses), and the reason why there are still a few unregistered motors available out there. If Nanjing has ANY cars at all, and it probably does, they will probably be unfinished, rogue spec and maybe a few company cars that were still being used. And maybe possibly a few development / engineering cars. Anyone remember what they (Nanjing) turned up in at Hopwood Sevices on the 1st Anniversary of closure just recently? Now I doubt they bought that off ebay or Auto Trader! There certainly WILL NOT be a fleet of unregistered cars lying around anywhere - as MGR were a bit crafty for a few months before the collapse. Dealers had to order cars many months in advance in order to qualify for hefty discounts........hence many disgruntled dealers left with loads of stock. And it didn't stop there. Not long before the collapse, they had a massive flush out of used cars (ex-staff cars) to the dealers at reasonable money. Guess what? At the time of the collapse, if they were on the dealers stocking (finance plan) then they were the dealers property and they HAD to take them. No wonder so many dealers were miffed to say the least - and why so many went out of existence.

MG Franchise Anyone????

I'm sure next time will be different :D

Regards,

Heath.
 

·
Registered
mg_zt
Joined
·
278 Posts
ZRsteve said:
Here's a rough guess at the numbers:

At the end MGR was selling something like 100,000 cars a year. If the stock was 3 months worth, that's 25,000 cars.

If they got an average of £5000 each wholesale that would be £125m.

That can't be right, can it! £53m for the production equipment AND £125m worth of cars...

But even if it's only 1 months worth that's still over £40m at 5k each. :eek:

Did NAC buy the stock separately? Have I completely misunderstood the situation?
Anyone have a vague idea how many are still unregistered. there seem a lot of City Rovers about still and a few odds and ends. Are there more to come? Maybe for the new reg in september?
 

·
Registered
Joined
·
144 Posts
I was on the front line...........I knew EVERYTHING!!!!!! The dealers were stuffed mate, didn't stand a chance. It's not often people should feel sorry for car dealers, but this is one occasion where it even brought the odd tear to my eyes.

Would I do it again though?: YES!
Do I still love MG? (and Rover!): YES!
Do we Brits love a good spanking: YES!

I'm sure if the new owners don't make the same mistakes everything will be fine. But a lot of dealers came in for a heavy shafting. And I'm not going to name names or point accusations, but you've got to have a pretty good idea how dealers operate to tie them up in knots like that. Very crafty. Very clever. But not very funny.

Still, what's done is done and the future beckons............

Heath.
 
1 - 8 of 8 Posts
Top