MG-Rover.org Forums banner
1 - 19 of 19 Posts

·
Registered
Joined
·
7,896 Posts
Discussion Starter · #1 ·
More support for MG Rover by Quentin Wilson in today's Sunday Mirror.

Basically he states that the Government dithering about the £100m loan gave the suppliers the jitters which in turn gave the Chinese the jitters.

The Adminstration was forced upon MGR and in reality is completely unecessary as MG Rover Group still have a healthy bank balance but obviously not enough to pay suppliers up-front, no manufacturing company big or small could pay up-front.

The Government damage limitation continues though as they try to shift the focus and blame away from themselves and on to the Phoenix 4.
 

·
Registered
Joined
·
250 Posts
Good to hear that another 'name' in motor Journalism has something positive to say.
Regrettably the Mirror's political stance is that it will always blame the 'big bad bosses' rather than refer to ineptitude on the part of the current government. Of course, Mirror readers will lap that up.
 

·
Registered
mg_6_gt
Joined
·
1,580 Posts
It sounds to me that Wilson is firmly blaming the Government. If this theory is the cause, then Hewitt should resign!
 

·
Registered
Joined
·
1,089 Posts
I wonder what the Mail on Sunday says? The motoring correspondent Russell Bray is always fair to MGR and its cars, and I think he genuinely does care about the company.

The financial and editorial team on the paper are the exact opposite, and have always been ready to stick the knife in. :cus:
 

·
Registered
other_manufacturer
Joined
·
4,589 Posts
Unfortunately UK governments are sh*t scared of breaking EC law*.
Instead they fall over themselves to adopt every bit of Euro beaurocracy that the corrupt lot of time and money wasting t*ssers churn out.

You can say one thing about the French, they put French companies and French jobs first and then argue with the EC second.

I'm voting UKIP!!!

* the reason why no loan could be made I believe.
 

·
Registered
Joined
·
21,131 Posts
I have no wish to get too political here... but there really ought to be an investigation into what went on at the DTI.

Much of the nonsense that appeared in the press can be laid firmly at the door of the DTI, who appeared intent on undermining MG Rover; as well of course as Ms. Hewitt who may well have signed the company's death warrant by her ill-advised and incorrect remarks on Thursday evening :irked:

John
 

·
Registered
rover_45
Joined
·
11,619 Posts
If they have money in the bank the administrators will find it very hard to say the business is not viable. Regardless of the debt outstanding to suppliers. So if money is in the bank like Wilson says then when John Towers said they still had assets he was not bending the truth.
 

·
Registered
Joined
·
14,789 Posts
Rover_ron said:
Unfortunately UK governments are sh*t scared of breaking EC law*.
Instead they fall over themselves to adopt every bit of Euro beaurocracy that the corrupt lot of time and money wasting t*ssers churn out.

You can say one thing about the French, they put French companies and French jobs first and then argue with the EC second.

I'm voting UKIP!!!

* the reason why no loan could be made I believe.
I agree with you there, most of the countries in europe pick and choose which bits of europe they want, like France.. We have to take on the whole lot, has Blair never heard of the word NO?

Jonathan
 

·
Registered
Joined
·
4,625 Posts
Sejin26 said:
If they have money in the bank the administrators will find it very hard to say the business is not viable. Regardless of the debt outstanding to suppliers. So if money is in the bank like Wilson says then when John Towers said they still had assets he was not bending the truth.
Then why didn't Towers pay the suppliers?

Assets are actually worthless if nobody wants them. MGR no longer had any cash to pay its suppliers even on credit. PVH had sold off everything of value in the past few years. Which is called asset stripping. And who benefited from this.?
 

·
Registered
Joined
·
7,896 Posts
Discussion Starter · #10 ·
If John Towers had paid Wagon upfront then every other supplier would panic and want their money upfront too.

A manufacturing business cannot operate in such a way.
 

·
Registered
Joined
·
1,608 Posts
The problem seems not to be that Wagon and others wanted upfront payment, they wanted payment for goods they have already delivered to MGR.

Wagon has an open bill of 800k, Trafficmaster 500k - who knows how many unpaid supplier bills are still there. It is understandable that the suppliers have not supplied any more.

Quentin Wilson seems to be wrong, is he a business expert (his name says me nothing)?

It is a very good question why the MGR directors have not paid open bills with their own money (this means the lot of money they have taken out of the business before). Will be one of the interesting questions they will have to answer.
 

·
Registered
Joined
·
4,625 Posts
*DLN* said:
If John Towers had paid Wagon upfront then every other supplier would panic and want their money upfront too.

A manufacturing business cannot operate in such a way.
Course it can't which is why it went bust.

Can I suggest you read the Times article (3 pages) and ask where did all that money go?

http://www.timesonline.co.uk/article/0,,2-1561289,00.html

There are some very serious questions which must be answered.
 

·
Registered
Joined
·
7,896 Posts
Discussion Starter · #13 ·
Any manufacturing company regardless of it's size cannot pay upfront for major components/supplies.

The basic principal is to :

receive materials, manufacture, sell finshed product, pay for materials.

Wagon are owed £760,000 and are on 60 days credit terms, I believe the amount is only payable in May.

MG Rover have always paid their suppliers according to their Credit Terms, their was absolutely no reason for any supplier to panic last week, it was all a direct result of the DTI 'expressing concerns' about the Joint Venture last Tuesday.
 

·
Registered
Joined
·
56 Posts
Atmos said:
The problem seems not to be that Wagon and others wanted upfront payment, they wanted payment for goods they have already delivered to MGR.

Wagon has an open bill of 800k, Trafficmaster 500k - who knows how many unpaid supplier bills are still there. It is understandable that the suppliers have not supplied any more.

Quentin Wilson seems to be wrong, is he a business expert (his name says me nothing)?

It is a very good question why the MGR directors have not paid open bills with their own money (this means the lot of money they have taken out of the business before). Will be one of the interesting questions they will have to answer.
I disagree with this. Any large manufacturer will have massive credit terms like this, effectively the suppliers get their money when the part is fitted to a car, not when it is delivered. Wagon had around £14m of business annually from MGR. A bill for £800k is less than a month's worth, and it's fair to assume they get their payment on a monthly basis. Hence they weren't overdue, they just wanted their cash upfront instead of on the agreed terms. Also, the directors wont have to answer any questions as to why they didn't pay the bills - it's not for them to do that! Any questions will be about asset transferral and pension funding, but I think they'll find the P4 did nothing illegal, and I personally don't think any such rearrangement of assets have led to this situation. The bottom line is that enough cars weren't sold - yes there will be a great deal of debate and speculation as to why that was the case, but a few tens of millions of pounds wont have been the straw that broke the camel's back.

Whilst Quentin may not be an expert on business, he does have a firm grasp of how a business works, and I respect him for not being afraid to speak out rather than go along with the rest of the press and the government's desire to wrap this whole issue up before the election campaign gains momentum.
 

·
Registered
Joined
·
3,039 Posts
Plus, we're not talking of handing a supplier £800K for goods supplied, we're talking about twice that. £800K for the goods already delivered and becoming due for payment plus this amount again to pay for the goods you want to order.

Suppliers retracting terms and demanding up front effectively doubles the amount owed, few (if any) companies would manage to weather that without a problem....
 

·
Registered
rover_45
Joined
·
11,619 Posts
xerif the management of MG Rover or PVH have plenty of assets. What about Studly Castle, tools for the cars, MG name and the TF. Heck we don't even know if they have sold the 25/ZR/75/ZT and the K series. I don't think they wear stupid enough to sell them outright as the 75 is there only real bargain tool for the whole business. Also you say about asset stripping I don't think they have. Just because they restructured the business to make more profit for the core of the business does not mean asset stripping. The main reason they could not pay the supplies upfront is simple. As Daytona said they would have to pay Wagon £800K plus another £800K for the next order that means £1.6 Million just for Wagon if you add the rest of the supplies up then you would be taking a lot of money.
 

·
Registered
other_manufacturer
Joined
·
1,496 Posts
Sejin26 said:
xerif the management of MG Rover or PVH have plenty of assets. What about Studly Castle, tools for the cars, MG name and the TF. Heck we don't even know if they have sold the 25/ZR/75/ZT and the K series. I don't think they wear stupid enough to sell them outright as the 75 is there only real bargain tool for the whole business. Also you say about asset stripping I don't think they have. Just because they restructured the business to make more profit for the core of the business does not mean asset stripping. The main reason they could not pay the supplies upfront is simple. As Daytona said they would have to pay Wagon £800K plus another £800K for the next order that means £1.6 Million just for Wagon if you add the rest of the supplies up then you would be taking a lot of money.
The problem is once you start paying cash up front with one supplier, every other supplier is going to expect the same, hence a snowball situation. PWC may have managed to get 14 day credit terms, still not ideal, but keeps things ticking along nicely.
 

·
Registered
other_manufacturer
Joined
·
3,679 Posts
*DLN* said:
More support for MG Rover by Quentin Wilson in today's Sunday Mirror.
That's quite ironic, seeing as Quentin Wilson and his free beer swilling press cronies have been merrliy slagging the brand off for decades, thus playing a not insignificant part in its downfall. He's just a smug eejut (i've actually met him and saw no reason to change that viewpoint afterwards).

DD
 
1 - 19 of 19 Posts
Top