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other_rover
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Discussion Starter · #1 ·
According to PwC they are busy trying to figure out the books. However they have said that one of the positives people should take is that MGR is now in a position to renegotiate all it's liabilities with the creditors. PwC have said this gives them a better chance of negotiating a rescue deal with SAIC.

I know PwC staff. They really are the best firm out there to come in as administrators. If the Government play ball then I tend to believe PwC can pull off a rescue deal. Incedentally nearly all the PwC guys are local lads. Many have a back ground in manufacturing. Whilst accountants are unemotional I tend to believe that if a deal is done, what will be left will be viable and then some! So don't despair that the accoutants have arrived. These guys are very good at their jobs!
 

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:) This is rather good news. I'm glad that they're not accountants from a london office who don;t give a damn about anything other than figures.

Ta for that MGRnut, reading that has made me a feel a bit easier :)
 

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I say turn your backs on the Chinese, it's their dilly dallying that has caused this situation.

Find a BRITISH company to take the helm.

I think the P4 have done a sterling job, but the press will never give them fair treatment now, so they should bow out, for the good of the company
 

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One thing to remember as well, Even in administration, its not over. Its putting the company in a state of protection.
Its a different market but I feel its a good reference.
Look at United airlines, they are in administration, they are getting their house in order and slowly climbing out of the situation they where in when they filed for administration back in 2002

Also im really unsure if still trying to get a deal with SAIC is a good thing or not. I have been getting the impression they are courting Fiat ever since the GM split up
 

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Scorgie said:
One thing to remember as well, Even in administration, its not over. Its putting the company in a state of protection.
Its a different market but I feel its a good reference.
Look at United airlines, they are in administration, they are getting their house in order and slowly climbing out of the situation they where in when they filed for administration back in 2002

Also im really unsure if still trying to get a deal with SAIC is a good thing or not. I have been getting the impression they are courting Fiat ever since the GM split up

Very true and they are starting to come out the other side now even stronger. I know because I work with UA as a preferred supplier.
 

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The move to administration partly wipes the slate clean - gets rid of excess liabilities and staff (only a management consultant could say that).
 

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It is an unfortunate business fact that the easiest way to cut costs is to make staff redundant, and I can see no way for MG-Rover to avoid cutting its workforce at Longbridge in order to survive.

It is interesting to note that back in Michael Edwardes time in charge at Longbridge, British Leyland employed tens of thousands of people. Today MGR employs just 6,000 and by the end of the year, that is most likely to be less. Just as Edwardes made staff redundant to cut costs in the 1970s, PwC and MGR will probably need to go down this line today.

This represents not only the decline of the car industry in this country, but manufacturing as a whole - 1 million jobs lost in that sector since Blair came to power in 1997.
 

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Of course, the public might go out and buy Rovers this weekend if the delaers get the story on the Warranty's right. It happened in 2000, it could happen again.

Blimey, doesn't seem like 5 years ago at all...
 

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Towers has flown back. Whether the 60 other MGR people are still out there I don't know. And if they are out there, I bet they're getting p1ssed! Or I hope they are.

SAIC could now find MGR an acceptable acquisition as after Administration many liabilities will be removed. But the fundamentals remain- it will be quite a while before MGR could show a profit. And we've all heard the rumours this year about the losses growing again.

If HMG offer a new deal, I still think SAIC will be very nervous about buying MGR wholesale. They may well insist on sharing the responsibility- that would make sense. After all, it's supposed to be pensions and redundancies that has scared them off so sharing MGR with someone would be sensible. And I'm sure HMG won't just start selling off IPR, they are there to save jobs, not raise a few million (chicken feed).
I think HMG will try and get SAIC back to the table as they will prove to be the only party interested in the bulk, but they will not want all the responsibility, so I see SAIC, PVH and HMG as backers/guarantors going in together. I can't see another option. PVH will be involved as they know the business backwards, they hold much of the IPRs and many of the contracts with SAIC, as well as Tata and owning the MG brand.
Sure HMG/PWC can make a few quid flogging the new engines, RD60 etc, but they are trying to save jobs and on any sale they make they will try and hang jobs on it or commitment to the UK- a poisoned chalic for many.
 

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Scorgie said:
Also im really unsure if still trying to get a deal with SAIC is a good thing or not. I have been getting the impression they are courting Fiat ever since the GM split up
I have the same impression. The Chinese have played a dirty game with MGR (and as SAIC made the rules it was easy for them).
 

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Discussion Starter · #14 ·
podders said:
Towers has flown back. Whether the 60 other MGR people are still out there I don't know. And if they are out there, I bet they're getting p1ssed! Or I hope they are.

SAIC could now find MGR an acceptable acquisition as after Administration many liabilities will be removed. But the fundamentals remain- it will be quite a while before MGR could show a profit. And we've all heard the rumours this year about the losses growing again.

If HMG offer a new deal, I still think SAIC will be very nervous about buying MGR wholesale. They may well insist on sharing the responsibility- that would make sense. After all, it's supposed to be pensions and redundancies that has scared them off so sharing MGR with someone would be sensible. And I'm sure HMG won't just start selling off IPR, they are there to save jobs, not raise a few million (chicken feed).
I think HMG will try and get SAIC back to the table as they will prove to be the only party interested in the bulk, but they will not want all the responsibility, so I see SAIC, PVH and HMG as backers/guarantors going in together. I can't see another option. PVH will be involved as they know the business backwards, they hold much of the IPRs and many of the contracts with SAIC, as well as Tata and owning the MG brand.
Sure HMG/PWC can make a few quid flogging the new engines, RD60 etc, but they are trying to save jobs and on any sale they make they will try and hang jobs on it or commitment to the UK- a poisoned chalic for many.
Towers has flown back to China???? Where did you hear that?
 

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i bet the lads in china are desperately trying to get back while they can....they dont want to be stranded with no one to pay for them to get back.
 

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Discussion Starter · #17 ·
Hmmmm not necessarily. If SAIC are planning to asset strip or do a deal SAIC will probably ask them to stay!
 

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after what has happened I agree with above, If i saw china running MGRover we know it wouldn't be genuine, this will turn out the same scenario as last time (bmw ) we need a company that has roots here & so if it does wrong people will get offended( and action can be taken ) , If china messed us about what could we do ???
 

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Discussion Starter · #20 ·
no1knows said:
after what has happened I agree with above, If i saw china running MGRover we know it wouldn't be genuine, this will turn out the same scenario as last time (bmw ) we need a company that has roots here & so if it does wrong people will get offended( and action can be taken ) , If china messed us about what could we do ???
We need to stop Rover and MG going out of business. We also need to recognise that SAIC own the rights to the Rover brand!
 
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