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Discussion Starter · #1 ·
On the news tonight (SKY or BBC24) they read an extract of a letter that Tony Blair has sent to the Chinese PM. If I recall correctly, it talked of a conversation they had had on Wednesday when the Chinese informed him that the original deal could not go ahead. I'm SURE it said Wednesday. The TV reports were that they spoke yesterday (Thursday) morning.

That would explain why Hewit was shifty in the House on Thursday morning and wouldn't give a straight answer on the loan questions- she knew it was too late. It would also explain why she was so quick to announce their demise- she was ready for it. It also explains why they have got £40million ready so quickly for the suppliers.

So John Towers stayed out there for an extra day, only returning this evening. My theory is he has been back to the negotiating table but this time not selling licenses and technology, but the whole lot. Once the deal was a no-go, he would have known the firm was finished, so my guess is he's been there trying to save the plant and as many jobs as he can.

So (and this is purely my own theory), Beale was left pleading for the Government to give the loan (for appearances sake? buying more time for Towers' talks? could they have been saved??), the Government was skirting the issue because they couldn't reveal what they knew and they couldn't give the money either- they had to wait for official announcement from MGR or SAIC. I think the Government and Phoenix have been very close on this; closer than we have thought- lets face it even the present shower in Downing St couldn't have screwed up this badly could they?

This is just a theory. If I misheard the letters contents and it said Thursday then this may not hold water...
 

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sounds about right to me.....alot more was going on in the background than any would have you know!! still say our government has handled the whole thing very badly!!
 

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FFS, I wish they would forget about the Chinese. Its their walking out of the deal that has now got us in this situation.

Hows about, for instance, the British Government, invest some money of their own, or cut back to a degree so that Rover can be self sufficient. It is the lack of this that now has Rover on its knees.

As much as I hate to say it, I doubt we are going to see another Phoenix style rescue. I not saying the Company doesn't have a chance at surviving, its just it won't without substancial cutbacks. They can build it up for there then...
 

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Discussion Starter · #5 ·
Who else will buy it? Its unprofitable and although you and I can hope and pray RD60 will change everything, no established business will take that chance. We all know GM, Ford, Daimler etc are in trouble. No one wants this plant. We are looking at the end now, they are trying to salvage something and SAIC might want bits. Saving bits is better than saving nothing surely?

MG will live, but probably not at Longbridge on its own, in its current form; its far too big a facility for the demand.
 

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Yes, they did say that the Prime Minister was on the phone to the Chinese Premier on Wednesday night for 25 minutes, but didn't reveal that they said the deal was over. This was said in Hewits announcement last night.
 

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Discussion Starter · #7 ·
Right, I reckon this idea has a bit more to it. The Chinese were allegedly put off by the following:

1/ The size of the workforce- there have been many comments on here about why MGR haven't reduced staff numbers- maybe this period of Admin. will sort that painful episode out nice and neatly for PVH?

2/ The pensions 'blackhole'- well the new rules that came in 2 days before will take care of that- gratis to PVH and SAIC!

3/ The size of MGRs liabilites- again this period of Admin. will shed/reduce these.

Towers has said himself to the Longbridge workers- "KEEP GOING"- is this because he knows it will be back up and running in no time? Was he in China 2 days extra because he was smoothing the path for SAIC to come back to the table?

Blair dodged the question of his opinion of P4 on Friday- is he just FURIOUS, especially after Beale begging for money on all TV channels on Thursday, especially if they all knew it was a dead deal anyway? And after all, Blair does seem confident of some salvation...

Brown is saying there may be an inquiry into PVH- is that sour grapes, genuine concern or a desire to jump on any popular press bandwagon?

Am I sadly deluded and labouring under false ideas due to lack of sleep? Probably...
 

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You're not deluded. I think the P4 have Tony and Gordon over a barrell, they know it and can't do anything about it.
 

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On BBC News 24, I am pretty sure the conversation referred to took place on Thursday... not Wednesday, but I cannot be 100% sure about that.

As for Mr. Brown's proposed inquiry... there is a time and a place for such an inquiry and it is not right now. Instead, the DTI and all parties concerned should be redoubling their efforts to ensure the future of the company, rather than trying to spread blame :irked:

John
 

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The collapse of a private company should not really have anything to do with the DTi - unless they feel guilty for not supporting the country more, in which case the inquiry should be into their actions, not those of the directors.

Also, I seriously doubt that had the money the Directors have drawn out of MGR over the last five years been ploughed back into the business that we would not have ended up with this situation, it would have just happened a few weeks later.
 

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Discussion Starter · #11 ·
Agreed. What IF they had removed £40million? So what? The company 'failed' over a lack of £100million. It would have still not been enough to satisfy SAIC.

I think any enquiry will show they took no such amount. If they did I'd be disappointed.
 
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