Hey pals from UK, I find this outrageous that in a country like the UK one of the top industrial nations there is noone from within to step in and invest in the auto industry in a company like MG-Rover!!!!
Where are the Richard Branson's and other even stronger UK businessmen and companies???
It is being reported that the major problem is the size of MGR debt. Did the £500 million debt that BMW underwrote ever get settled or does that come back in to the equation in this tpe of deal?
A similar, but smaller, shutdown & restart was Triumph Motorcycles. Well know story, going downhill for years, worker cooperative for a while, shutdown completely. A knight (John Bloor) in shining armour came on the scene. His background was house building; started as a hoddie and built his first small estate when he was 21.
He bought the intellectual rights to the Triumph name, not the actual business, using his own private money. Designed a completely new range of engines and bikes, built a state of the art factory and started selling bikes again in 1991/92. Over the next 10 years he pumped in well over £80 million of his own cash. Then one night an explosion ripped the centre out of the factory destroying all manufacturing, stock and assembly.
Within 4 days he had an admin facility running at a business continuity site and the duisaster recovery plan was kicking in to action. Within 100 days he was back in a new build facility with improved manufacturing lines and producing finished machines again.
It seems to me (simplisticly perhaps) that the big lesson from this is not trying to rescue an ailing company that has been run down over several decades but to rescue a respected name by regenerating.
It cost Bloor £80 - 100 million pounds to restart motorcycle manufacturing - the cost of designing a new MG from scratch would be mind boggling. Russians have bought Morgan, do they have enough to do the same for MG? Is there anybody, individual or consortium, who can finance a rescue program for MG & Rover?
There was interviews with Longbridge employees this morning on the radio, some said there were as much in the dark as anyone else but they all said they were worried, one even said "I think it's the end of the road to be honest". Guess everyone will just have to wait and see.