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other_rover
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Discussion Starter · #1 ·
If PwC do look at the books and draw the conclusion that MGR is not insolvent and that it has cash in the bank then it may not be curtains. If PwC can get their audit done inside 2 weeks then MGR could turn around to the government and blame them for driving them into this crisis with their suppliers.

If that happen MGR could make a strog case for re-nationalisation. They could argue that this would not be a huge risk for the taxpayer as nationalisation would merely be a stepping stone to a deal with SAIC/ other. As a nationalised business MGR may have more strength to go out and draw a conclusion to a deal. PwC have a mission on now. They must prove MGR has money in the bank and gas in the tank!
 

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Given that Her Majesty's Government have effectively created this mess... then irrespective of what PWC find, then surely they have a moral and possibly a legal responsibility to sort this out, retain car manufacturing at Longbridge and see that the company is ressurected on a sound footing.

John
 

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Thing is, though, PwC may only find the company solvent if all the rest of the PVH assets are included... which would preclude any clever debt-avoiding break-up by the P4.

I still think we need to know whether PwC have been called in to examine MGR, or PVH as a whole.
 

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Hope you're right Matt, but if MGR ceases production then Powertrain won't be healthy for too long - although I suppose a lot of their work is supplying XPart (CAT) as well as Land-Rover, Caterham, etc.
 

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MattL said:
MGR only i think! Most other areas of PVH are quite healthy.
Are they not inter-dependent though, who is going to cover the volumes of engines MGR bought from Powertrain Ltd to keep them profitable?

What is happening with the stuff that SAIC bought - K series etc?
 

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Dan Lockton said:
Hope you're right Matt, but if MGR ceases production then Powertrain won't be healthy for too long - although I suppose a lot of their work is supplying XPart (CAT) as well as Land-Rover, Caterham, etc.
But not for long, Land Rover will be using a Ford engine in the new Freelander, and Caterham could easily change to Honda or Ford units, especially if Ford or Honda takes advantage of the situation.

Still, that Aquada thing that Richard Branson sailed across the channel uses the 2.5 KV6 and sells just slightly slower than a Rover 25.
 

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Discussion Starter · #8 ·
The big problem is that PwC like any other accountancy firm will need a minimum of 2 weeks just to get a half decent picture of the financial state of MGR. MGR workers need things to build and customers need reasurance.

Incedentally PwC can not give consultancy advice anymore as they flogged that business to IBM. PwC will be going in purely to advise on the health of the company.
 

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Powertrain LTD are dependant upon MGR but there are other areas of PVH that are healthy. Not sure if they will be included in any audit though as they are completely seperate on paper.
 
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