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mg_tf
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Discussion Starter · #1 ·
It seems that Patricia Hewitt's announcement of MGR's demise is, at the moment, premature (and certainly not going to help the situation).

The prospect of losing 21000+ jobs is awful. The possible loss of warranty and speedier depreciation on my TF pales into insignificance.

However, if Hewitt eventually turns out to be right, the BBC seem to think that MG may survive in some form. Certainly, I've seen it written that TF production was pretty stretched. Is this true? Might the TF, with its unique position in MGR's model range actually survive? Is it sufficiently saleable?

Note to moderators: Please don't move this thread. It's about the future of the F/TF and not MGR as a whole.
 

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Not sure. But the facts are thus:

The MGTF is the biggest selling roadster in the UK.
The UK has the biggest roadster market on the planet.

My hope is that as the TF is just a bucket of Honda and Rover bits held together with string, chewing gum and hope, it might be quite cost-effective to keep making it.

If not, then watch your resale values plummet like a Yugo's.

My advice is to disregard everything and enjoy your car for as long as you want to.

Nige.
 

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nce said:
Not sure. But the facts are thus:

The MGTF is the biggest selling roadster in the UK.
The UK has the biggest roadster market on the planet.

My hope is that as the TF is just a bucket of Honda and Rover bits held together with string, chewing gum and hope, it might be quite cost-effective to keep making it.

If not, then watch your resale values plummet like a Yugo's.

My advice is to disregard everything and enjoy your car for as long as you want to.

Nige.
No major auto manufacturer closed in recent history!

Big difference between going bankrup and seizing to exist!
 

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mgf
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I'm actually too depressed at the moment to contribute meaningfully to this discussion. But i will say that we don't know all the facts and there is a hell of a lot of speculation flying around.

:(
 

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Scarlet Fever said:
I'm actually too depressed at the moment to contribute meaningfully to this discussion. But i will say that we don't know all the facts and there is a hell of a lot of speculation flying around.

:(

Totally agree Andy.
Spent an hour reading thru some of the posts in the General forum. There's so much speculation and a lot of anger (understandably) at all the prime targets but no one here has all the facts or knows what's been going on behind the scenes for real.

Good to know that TF production is carrying on but presumably when other suppliers jump on the bandwagon that may stop as well.
 

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I think it probably is more likely that MG survive and Rover don't, looking at the sales figures alone you've got to imagine that their accountants would probably be advising them to hold on to the more profitable business and get rid of that which is losing them money.
 

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Fact is that MG TF is the best selling roadster in the UK. Ok we all have our niggles with the car and poor points about it. Afterall it is rover.

However i would not swap or purchase any of its rivals in a similar market. MX5, MR2 etc. The upper markets like lotus and porsche yes, but who wouldnt?

I am alittle worried about the depreciation values but hey at the end of the day i love my car, and afterall its only a bit of tin and metal. I just feel for the workers who may lose their jobs!!

Heres to good luck and a happy future for those panicing with redundancy looming....Good Luck
 

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Green Goddess
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Its a sad and worrying time especially for all the staff that could soon be out of work, all we can do is keep an eye on the news and wait and see what happens and keep our fingers crossed
 

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mg_tf
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Discussion Starter · #13 ·
Schtopper said:
I think it probably is more likely that MG survive and Rover don't, looking at the sales figures alone you've got to imagine that their accountants would probably be advising them to hold on to the more profitable business and get rid of that which is losing them money.
I did see this morning that while Rover recently saw a drop in sales, MG saw a rise...
 

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mg_tf
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Discussion Starter · #14 ·
Patricia Hewitt is sounding a little more measured and contrite after last night's blunder. On BBC News she has referred to the 'MG sports car' as 'very popular and successful' in the context of some manufacturing continuing at Longbridge.

She also said that it was never part of the Chinese negotiations. I hadn't realised that.
 
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The MG brand carries a lot of credibility world wide and that must have some commercial value. The TF is a good seller and, as part of an expanded range, may give a lifeline to MG at least.

I have greater doubts over Rover - the world is now full of quality family/executive cars and it may be harder to find a buyer for them. I suppose that the Rover name will revert to BMW if MGR fold or are split up. Could we expect a range of MINI based Rovers? How about a 21st century, MINI based, Rover badge Riley Elf equivalent!
 

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mgf
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Yep, the SAIC deal was for use of the Rover name only as far as i am aware - but the details are still very hush hush and no one really knows the full ins and outs other than the principle players.

I am still hearing various rumours flying around and have no idea of what is actually going on. I suspect that a very few people do know, so i am very worried and concerned for the future of the company and it's employees, but have no real facts to proceed on.

Here's how i understand the situation so far...

1 ) SAIC deal was supposed to be done in January - meddling by the press and falling sales (also mainly caused byt the press scare mongering) gives SAIC pause for thought regarding the long term viability of thier proposed new partner. They seek assurances that MGR will still be around in 2 years (when the profits from the proposed deal start to roll in).

2 ) DTi propose a £100m bridging loan as a sweetener to the deal with SAIC, but this is a one off payment for the first year only, SAIC still worried about year 2 and the deal is on the brink of collapse.

3 ) Because of this, some of the component suppliers (who are on a credit arrangement with MGR) become worried that they won't get paid and stop supplying parts (yesterday) causing the line to stop. Basically they are holding MGR to ransom - suicidal brinksmanship i call it.

4 ) MGR call in Price Waterhouse to review options (and nothing more).

5 ) Patricia Blewit jumps the gun and says MGR have called in the receivers - this causes panic amongst the workers and suppliers and also SAIC.

6 ) MGR try to set the record straight, but the horse has bolted and the damage is done - the media are reporting the demise before it has happened and MGRs credibility has dissapeared completely - it is now only a matter of time...

7 ) MGR come to the conclusion that they cannot continue now, and call in the receivers (this is the latest news - note 10 hours difference between Pat Blewit announcing a false hood to her blunder actually causing it to happen).

Just an incredible set of events, but as i said, this is just my interpretation of what i am hearing from various sources. I certainly think that the DTi and Pat Blewit have a lot to answer for - an incredible blunder, i also think the press are largely responsible for the continual decline of sales - think about how many news items you have heard that start off 'Troubled car maker MG Rover' - each one of those puts off buyers. A self fulfilling prophesy? I am seriously gutted, but who knows what will happen next - i certainly couldn't have predicted the above.
 

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mg_tf
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This is only rumor and speculation read from another forum, but there was a suggestion that the TF and the SV were ring fenced and may even have been transferred into a new company MG Rover Cars Ltd created in april of this year.

But of course that could be rubbish as well.
 

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other_manufacturer
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Need to be careful on this reply as I understand its an emotive time and I don't want to cause offence.

5 ) Patricia Blewit jumps the gun and says MGR have called in the receivers - this causes panic amongst the workers and suppliers and also SAIC.

6 ) MGR try to set the record straight, but the horse has bolted and the damage is done - the media are reporting the demise before it has happened and MGRs credibility has dissapeared completely - it is now only a matter of time...

7 ) MGR come to the conclusion that they cannot continue now, and call in the receivers (this is the latest news - note 10 hours difference between Pat Blewit announcing a false hood to her blunder actually causing it to happen).
These statements give the impression that the goverment is in some way responsible for MGR's demise. Althgough you would have thought that MGR's press office and the goverment would have got there act together with timings, I'm sure you would agree that the company was already dead and buried. If it hadn't been the case MGR would sue the goverment for every penny of loss caused - nah, the state of the finances with MGR were the cause of the demise.

1 ) SAIC deal was supposed to be done in January - meddling by the press and falling sales (also mainly caused byt the press scare mongering) gives SAIC pause for thought regarding the long term viability of thier proposed new partner. They seek assurances that MGR will still be around in 2 years (when the profits from the proposed deal start to roll in).
Although the press don't do MGR any favours the main reason has to be with no investment, hence no new models. Sales were bound to slump.

Its a dreadful shame for the workers and if any are reading this thread good luck to you in the future fingers crossed that some thing positive is waiting in the wings.
 

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mg_tf
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Discussion Starter · #20 ·
Bill Brooks said:
These statements give the impression that the goverment is in some way responsible for MGR's demise.
Certainly didn't help. As soon as Hewitt (incorrectly) said that the receivers had been called in it made it well nigh impossible for any further discussions with the Chinese. Why pay for a going concern when you can wait a while and pick over the wreckage for a song?

It's also interesting to note that she doesn't appear to understand the difference between receivership and administration; and what is a Government Minister doing making that kind of announcement about a private comapny anyway?
 
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