Exactly. This is awful news. Sorry, but I'm starting to feel very negative right now.Richard Moss said:Great - one of those self fulfilling prophesies.
Suppliers won't supply due to doubts over viability. Production suspended. Cash flow dries up. No money to pay bills. Company becomes non-viable.
That’s just one of the better gags! How can you file for compensation when you haven’t paid for anything? It’s more like the suppliers would send the finger breakers round to Longbridge and re-take unpaid for items!boxwellm said:Daft isn't it. They're probably waiting for supplies of widgets costing 3p from some supplier whose got arsy.
Production halts are an everyday occurance though, so this really isn't news at all. 75 production was suspended during our factory tour last week whilst MG-Rover awaited parts supplies.
The thing is, all these suppliers are on pretty tight contracts, which means they will have to start paying MG-Rover compensation pretty quickly if the supplies don't start arriving.
I would have thought that resolving these problems will take a few hours on the phones, offering immediate payment terms and the alike for the next two weeks. I am lead to believe that MG-Rover have built up a good payment record over the past five years and that this hasn't changed recently, which will obviously work in their favour.
However, if I were MG-Rover I would also be invoking the compensation claims with immediate effect alongside this, so that unless parts start arriving before the end of the day the suppliers are liable for losses.
No. MG-Rover have contracts for supply in place. Like most manufacturers, MG-Rover have a just in time supply process for Longbridge. This means that when you run out of - say - 5amp fuses, the whole production line comes to a halt.That’s just one of the better gags! How can you file for compensation when you haven’t paid for anything? It’s more like the suppliers would send the finger breakers round to Longbridge and re-take unpaid for items!