MG-Rover.org Forums banner
1 - 20 of 36 Posts

·
Premium Member
Joined
·
31,560 Posts
Discussion Starter · #1 ·
Just been on News 24.

Price water house were bought in by MGR today or tomorrow to review the books & to advise, not to start recevership proceedings. Hewitt jumped the gun and declared that they had bought in the recievers, effectivly destroying the remaining confidence in the company.

The mother of all fu*k ups if you ask me... Nice one, that stupid woman has probably cost tens of thousands their jobs.
 

·
Registered
Joined
·
1,195 Posts
I can just imagine the conversation...
"We're calling in PWH"
"Receivership, OK I'll tell the press"
<Kerchunk> Phone disconnects
"No, wait we're... Oh F*ck"
:cus:
 

·
Registered
Joined
·
404 Posts
SteveChilds said:
Just been on News 24.

Price water house were bought in by MGR today or tomorrow to review the books & to advise, not to start recevership proceedings. Hewitt jumped the gun and declared that they had bought in the recievers, effectivly destroying the remaining confidence in the company.

The mother of all fu*k ups if you ask me... Nice one, that stupid woman has probably cost tens of thousands their jobs.
Spot on Steve. She needs to be the target of a pretty nasty press backlash and I'd like to see her neck on the line. An absolute sham (again) from this hapless blundering government department. Could Byers have done worse? Probably not!

Simon
 

·
Registered
Joined
·
4,625 Posts
JohnSwitzer said:
This could actually be very good news. Presumably, this means that MGR can sue HMG for damages?

John
Realistically Beale was saying they were finished a few hours earlier. Some of the confusion depends on what Towers said since it'll be his call.

With suppliers already holding back, its the final death rattle.
 

·
Registered
Joined
·
1,195 Posts
It's not really a way out though is it...

But why the government should be interfering so much in a private company's afairs I don't understand.

It is MG Rover's call to make the announcments.
 

·
Registered
Joined
·
1,068 Posts
Trouble is, the papers will already have been printed, so the damage is done, people will be queueing up at dealers tomorrow to cancel their orders
 

·
Premium Member
Joined
·
31,560 Posts
Discussion Starter · #8 ·
To be fair Pontelad, the papers won't have changed that much in 90 mins, I suspect the story broke too late for most of them anyway.
 

·
Registered
Joined
·
1,861 Posts
Indeed this is now being reported on Ceefax as Confusion over MG Rovers Future, although Teletext are still saying they have called in the Recievers

What a shambles.

I guess it depends if they really have run out of Money. If they could avoid Administration they could look at a Major Slimdown and turn themselves into the MG Sportscar company but could they afford the redundancies probably not.
 

·
Registered
Joined
·
35,551 Posts
PonteLad said:
Trouble is, the papers will already have been printed, so the damage is done, people will be queueing up at dealers tomorrow to cancel their orders
The papers hadn't got wind of the news from Patricia Hewitt that MG Rover had gone into administration, because their print runs would have been earlier this evening. They will probably hit the second run.
 

·
Registered
Joined
·
881 Posts
Speaking of tomorrow's papers, the Guardian, Independent & Daily Mail are all blaming the Phoenix Four and applauding the government for not offering support.




News
Disgruntled staff blame the "Phoenix Four"


By James Burleigh
529 words
8 April 2005
The Independent
4
English
(c) 2005 Independent Newspapers (UK) Limited . All rights reserved. This material may not be published, distributed or exploited in any way.
WORKERS AT MG Rover"s plant in Birmingham said last night that employees" morale was "at rock bottom" following the announcement that production has been suspended.

As production line staff left the plant at Longbridge last night with a distinctly uncertain future ahead of them, many were clearly disgruntled with the management team at the car manufacturer.

The managers " John Towers, Nick Stephenson, Peter Beale and John Edwards " who, in more optimistic times, were called the "Phoenix Four" " will clearly not be hit in quite the same way as their workforce.

While they have overseen sales dropping to about 100,000 last year and losses totalling at least £611m since they paid BMW £10 for the firm in 2000, it is believed the four bosses have paid themselves around £31m in salaries, pensions and benefits.

In addition, their investment vehicle Phoenix Venture Holdings will keep a 25 per cent stake in any Chinese joint venture likely to be worth at least £50m, according to industry experts.

For the man on the shop floor, that came as no surprise. Dave Wilkins, 44, who has 20 years" service with the firm working as a rectifier, blamed senior management for not investing in the plant.

Mr Wilkins said: "There"s no future for Rover. It just seems to be one five-year deal after another. They"ve not invested anything. The equipment is here, they should have invested the money in prototypes." Mr Wilkins added that production had been faltering at the site for a while and that yesterday was especially bad, with people milling around all day as the production line stood idle.

Mr Wilkins, who plans to become a firefighter if he loses his job at the plant, said: "There"s been a shortage of parts for the past two months. They haven"t been paying their bills. It started with fascias, then wheels."

Ever since the takeover, sales have sagged dramatically from over 200,000 in 1999 to the current low and the losses have grown ever higher. Figures for last year will not be made public until the autumn.

Meanwhile, Rover sources have reportedly said that, after the deal with the Shanghai Automotive Industry Corporation, the Phoenix Four would continue to control a number of valuable businesses and assets that will be omitted from the joint venture. They include two MG car models, Rover"s car showroom and financing businesses as well as Studley Castle " a £5m stately home in Warwickshire.

Another worker, outside the gates, who did not want to be named, said: "I have worked there for a long time and I have never seen it that bad before. People don"t know whether they are going to have a job tomorrow, they worry about whether they are going to lose their house and how their families are going to suffer."

Speaking outside Q Gate, on the southern fringe of the site, Ian Lambeth, 46, a worker from Bartley Green, said that many staff wanted answers from management about their fate and about the worth of 800 shares issued to workers after BMW sold the plant.
 

·
Registered
other_rover
Joined
·
2,435 Posts
I am lost for words. Yes, this is one big f**k up. The damage has now been done. I agree with statement above about the government keeping out of private companies finances.

Heads need to roll for this.

I am lost for words, and higly peed off. My vote was going to go to labour but alass they have not just effectively closed down one company they have illustrated the way they wish to tackle the manufacturing industry. The end is nigh in more ways than one.

We need to get some air time in the media for pro MGR / manufacturing. Considering getting the car stickered up with pro MGR / manufacturing so at least as i travel down the grid locked M1 people get chance to read it.
 

·
Registered
Joined
·
1,306 Posts
Yessssss!

C'mon folks! This is excellent (ish).

The Government has jumped the gun. Beale said earlier the company had 'days' left. Hewitt has killed them. THIS IS NOT RAILTRACK!! THEY CANNOT DO THIS!!

MGR now have a case against the Government for compensation. MGR IS NOT DEAD YET!

And if it is, P4 (who I have always felt were doing their best) still control the TF, the SV, the badges and Powertrain. All that dies now is the BMW loan!

This could be a very good news day for MG fans...
 

·
Registered
mg_zt
Joined
·
240 Posts
Trouble is, the papers will already have been printed, so the damage is done, people will be queueing up at dealers tomorrow to cancel their orders

Well I was going to order a MG ZT CDTi + 135PS at the end of this month, and if I can still get one I will. Forget warrenties, at least I can hold my head up with British Pride.
 

·
Registered
Joined
·
61 Posts
You reep what you sow and the gang of 4 have sowed some right **** and bull story's over the last couple of weeks,the best thing they can do is hand the money back that they have taken from the coffers.
 

·
Registered
Joined
·
35,551 Posts
TimO said:
Well I was going to order a MG ZT CDTi + 135PS at the end of this month, and if I can still get one I will. Forget warrenties, at least I can hold my head up with British Pride.
Yeah still buy one. I've got an 04 plate one and it is fantastic. I went to Sainsburys this afternoon and coming out of the shop, I looked around at the sea of cars in the car park. What car was it that stood out above all else - my car! Absolutely stunning.

If the worst does happen to MG Rover, then buy the new MG without the warranty and buy an aftermarket warranty for a couple of hundred pounds - you are covered that way!
 

·
Registered
Joined
·
10,841 Posts
Well, i think there will be alot of mixed opinions now on the political parties involved with the 2005 election with the speculation of the job losses in the Midlands! Especially in the area of Birmingham and the Midlands region. I think peoples polticial veiws are varied, but i personally think that now this has all come to light, the Labour's campaigning in these areas will be falling on deaf ears.
 

·
Registered
Joined
·
1,306 Posts
Well let them cancel! Strengthens MGRs case! Look what the Governemnt have done!

The Government have just gone to the press- typicall- all they care about is headlines and their side of things. They have trotted MPs out tonight to blame MGR for failing. Spin spin spin. FACTS FACTS FACTS!

MGR will be trading tomorrow- they still have money to pay the bills... Not for long, but they can justly say the government has killed any rescue.

This is a BIG problem. If I were Tony I would want to be in Rome tomorrow- far, far away...
 

·
Premium Member
Joined
·
31,560 Posts
Discussion Starter · #19 ·
Update from DTi...

Blaming the Union chief Tony Woodley, the DTi said that he was asked if the contact from John Towers indicated that tghe administrators had been called in, he said yes.
 
1 - 20 of 36 Posts
Top