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Discussion Starter · #1 ·
Digby Jones (from the CBI - http://www.cbi.org.uk) was interviewed on BBC West Midlands radio about half an hour ago.

He will do what he can for the MGR employees and marques, and is likely to be heavily involved in any redevelopment plan.

He sees a future in some sort of deal with the Chinese with the new medium car (and I guess the 75). He also hopes that MG sportscar production at Longbridge can continue.

It seems likely that the business will effectively be wound up, so that the viable parts of the business can start with a clean slate.

You can listen to the radio station at:
http://www.bbc.co.uk/england/radiowm/
 

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So basically we will have an MG sportcar company producing a few tens of thousands of cars at most, and all the hard work and effort that's gone into trying to maintain the existing models, and produce the Nexus and other modles will all be for nothing as these will end up as essentially Chinese products in ownership and production. And probably brand name as BMW sells the Rover to MGR and/or SAIC.Apart from another TVR-type company, please tell me exactly what there is to be pleased about in this scenario? Exactly what is saved?
 

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There was simply no way PVH could wind-up MG Rover at the drop of a hat, some sources have said that BMW have already written off the £500 million loan and aren't realistically expecting it ever to be paid back, so I doubt they'll be too bothered, it seems to me that the loan was really to keep MGR going long enough that BMW wouldn't be overly implicated (and suffer more negative press) if the company going bust, should such a situation occur. I doubt they'll be shoving their way to the front of the queue now and may well just write the loan off completly, rather than face more negative press.

I was thinking that part of the reason MGR may be short of cash is that they've had to give SAIC all their money back, the money paid for the K-Series and the R75 and R25 designs. If I recall correctly, that would total around £160 million.

Now, with the Chinese blamed, BMW blamed, and the Phoenix Four pretty much exonerated by the Unions, MGR can be wound up, effectively start with a clean slate and without having to stump up interest repayments to BMW, without having a pension fund defecit (the Government will clear that out too, with the new Pension Protection Fund which starts, umm, today !) and business may well carry on as usual until, funding is possible without huge creditors and pension fund black holes, so we may see Government or some of the banks bankrolling the new RD/X60 once everything has been sorted out.

The Chinese may still be involved, could all be a masterplan, and perhaps they along with a totally seperate PVH Venture own the rights to the Rover 75 and the Rover 25, and the K-Series engine out in China, that way the company goes bust but has no assets, no IP, with the JV continuing happily on it's way out in China.

Nick
 

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Discussion Starter · #7 ·
I reckon the 25 and 45 will be sold to the Chinese lock stock and barrel.
The common-rail L-series will go to be Sonalika in India.

There may be buyers for the TF and SV production facilities (lets hope they are British), but the TF is dependant on the K-series, though that may well go to China and be imported back.

The 75/ZT and new medium car is where the uncertainty really lies. Will the Chinese get their hands on all of it on the cheap, or can a true UK-Chinese collaboration for these platforms be achieved?

As for any new MG sportcars, their future probably depends on the low-volume suitability of the platform.
 

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Discussion Starter · #8 ·
There's just been another interview on BBC radio WM.

Apparently an exciting proposition (oo, er) will be made to the PM this evening.
There was a hint of some sort of city rescue package being put together.
 

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gnnw196 said:
There's just been another interview on BBC radio WM.

Apparently an exciting proposition (oo, er) will be made to the PM this evening.
There was a hint of some sort of city rescue package being put together.
Why does this sound familiar? Or am I just having deja vu?
 

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Discussion Starter · #10 ·
A certain individual with the initials JM comes to mind, doesn't he.
However, he has been quoted as saying something along the lines of "I wouldn't touch the TF with a bargepole".

I guess it all comes down to the low volume viability of the unfinished sportcars.
 

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Roodosutaa said:
Why does this sound familiar? Or am I just having deja vu?
There is a chance that RBS / Barclays / HSBC or a Foreign bank (or any combination of the above) may well be interested in bailing MG Rover out, provided the Government is prepared to underwrite a sizeable chunk of the loans (This being the Business Loans Guarantee Scheme, although whether it would apply to MGR is unclear, If I recall correctly, works as follows, Bank loans 100% to MGR, Government underwrites around 85% and Phoenix would underwrite the 15%)
 
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So they should - The Banks have made Billions this year - time to support Britain.


Where did you get this news from?
 

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Discussion Starter · #13 ·
I heard the "proposition" news on BBC WM, but I didn't catch the name of the interviewee :banghead:
 

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Well, who said owning a Rover and MG was boring? I think MGR will be saved but jobs will go, that's inevitable. I sense something positive is just around the corner.
 
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gnnw196 said:
He sees a future in some sort of deal with the Chinese with the new medium car (and I guess the 75). He also hopes that MG sportscar production at Longbridge can continue.

It seems likely that the business will effectively be wound up, so that the viable parts of the business can start with a clean slate.
Which pretty much takes us to where Alchemy wanted to be 5 years ago.

Two ways of looking at it: It's either been 5 valuable years years of "volume" car production or 5 unnecessary years of pain and anguish.

Perhaps, a little of each. The Rover brand has been damaged, but there is a new car just about ready to go and MG have at least been resurgent over that tim.
 

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gnnw196 said:
A certain individual with the initials JM comes to mind, doesn't he.
However, he has been quoted as saying something along the lines of "I wouldn't touch the TF with a bargepole".

I guess it all comes down to the low volume viability of the unfinished sportcars.
I might be wrong on this, but looking at the way Alchemy has worked when they've taken over other failing companies, they're really not in it for the long haul. They almost guarantee to exit within 5 years, ideally 3, after slimming down the companies by selling off all the assets they can, leaving a much smaller, leaner core (which is what Moulton's proposed 2000 MG Car Company would have been).

So if Moulton were to be involved again this time, he'd have to be confident that there were enough assets included to strip to make it worthwhile for Alchemy's investors.
 

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Discussion Starter · #17 ·
Tens of thousands of people have been earning a living for five years because of the P4. Thats got to be worth something.

If Jon Moulton had got the deal before the area would have been devastated. Now at least the component suppliers have diversified and most of them will survive.
 

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Well done Sir Digby.


I am very glad that there are lots of people working hard to make this as painless as possible.

It is important that as much can be saved as is possible. I am glad that the people of his calibre are on board.
 

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Hope beyond hope

I hope to God something can be salvaged from this.

Please correct me if im wrong but SAIC now own the 25 and 75 designs.

What where P4 thinking??????????

Come and give us a lot of money for our R&D department so we can develop the 75 into the new 45?? oops we dont own the 75.

Im sure it was a financial neccesity but it seems niave
 

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Discussion Starter · #20 ·
Rights to manufacture the 75 and ownership of the IP are two entirely different things.

Even if the Chinese have the IP they don't have the production line and presses. If MGR goes bankrupt, they won't complete the transfer and installation of the equipment, and the Chinese won't be able to manufacture the car.

If the Chinese want the line, they will have to pay for MGR engineers to move it. Who they will have to pay for the line and the engineering expertise is another matter.

I really hope something of the 75 is left at here, it really is worth fighting for.
 
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