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Discussion Starter · #1 ·
It has been said on here that MGR have 3 or 4 models almost ready for production. Does anyone know what these are?

Any prospective buyer would be interested in these, surely, as showing the true potential of the company?
 

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I have read an article yesterday that said that MGR spended just 4.5m for R&D during 2003 and zero 2004. If this is really true, I can´t imagine that this often mentioned "3 or 4 models almost ready for production" has much truth in it.
 

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I have read an article yesterday that said that MGR spended just 4.5m for R&D during 2003 and zero 2004. If this is really true, I can´t imagine that this often mentioned "3 or 4 models almost ready for production" has much truth in it.
The 2003 figures came from the shareholders' report (made public) but where would the 2004 figure ("zero") come from? MGR hasn't published a 2004 report yet.

The R & D expenditure does puzzle me, because the UK has a fairly generous R & D tax credit scheme at present, which you'd think would encourage a company to overstate its expenditure, if anything. Though I suppose if the company is making a loss anyway, it probably doesn't matter.

A possibility would be that the R & D was not 'done' by MGR but channelled through another PVH subsidiary (or even a company outside of PVH) so that the IP resided with that company rather than MGR. That's only a guess, but it might be true. We don't know the full story. Clearly they have done some R & D in 2004 because of projects like the Sonalika SUV (which was reported by Sonalika rather than MGR, so it isn't just a figment of our imaginations).

I do share your worries, Atmos, but as an engineer I've seen a lot of adverts in UK trade magazines for MG Rover recruiting engineers over the last year. I can't imagine if they employed that many, that they would do "zero" R & D.
 

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Discussion Starter · #5 ·
Dan,

as another engineer in the industry, I can concur that MGR/PVH has indeed been advertising for engineers and contractors on longer term contracts than they have been offering over the last couple of years.

Ads have been in magazines such as Professional Engineering and Automotive Engineer, and these were full page ads, with an outline drawing of an SV at the top. They implied that they were recruiting development and design engineers as well as more senior project managers/principal engineers, and that there was the opportunity for overseas travel.

So if they really believed that this deal was coming to something, they certainly weren't expecting this trouble at the last minute. There have already been MGR engineers going out to China.

This is what I don't understand. If it wasn't already cut and dry, why hand the jewels over upfront? Unless of course PVH was misled and dropped once SAIC had got it's hands on what it wanted. :cus:
 

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The P4 said that they were working towards a Yes from the Chinese, so obviously their typical cost cutting wasnt done in the last half of 2004, hence the jobs, the ads and the R&D. Thats where any spare money they had went, I assume.
 

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Steve McF said:
Dan,

as another engineer in the industry, I can concur that MGR/PVH has indeed been advertising for engineers and contractors on longer term contracts than they have been offering over the last couple of years.

Ads have been in magazines such as Professional Engineering and Automotive Engineer, and these were full page ads, with an outline drawing of an SV at the top. They implied that they were recruiting development and design engineers as well as more senior project managers/principal engineers, and that there was the opportunity for overseas travel.

So if they really believed that this deal was coming to something, they certainly weren't expecting this trouble at the last minute. There have already been MGR engineers going out to China.

This is what I don't understand. If it wasn't already cut and dry, why hand the jewels over upfront? Unless of course PVH was misled and dropped once SAIC had got it's hands on what it wanted. :cus:
There's the public face of any company and the reality. MGR had a plan for new models so of course went on recruiting. But by October when the auditors were in and the restyled cars and the CR had clearly failed in the marketplace, Management must have known time was running out. It was in November that Towers had to preamaturely announce the deal because the suppliers were getting worried (and remember using Just in Time they would have known what the real production figures were).

So in desperation and having comprehensively shot themselves in the foot by the premature announcement of the deal, MGR gave away sweetners to keep SAIC on board. What other choice did they have?

It wasn'y finally PVH who was misled but SAIC. Answer this: why if the deal was so close in November SAIC and the DTI only found out how bad things were two weeks ago.

Maybe SAIC thought the there was a deal but had been totally misled on the true state of MGRs finances.
 

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I agree with xerif, especially the "There's the public face of any company and the reality" sums it up very well. Maybe the Phoenix 4 have always tried to keep the people happy and have told them what they want to hear, but at one point the reality bites.

Dan, the Independent wrote those figures yesterday, no idea what kind of source they have.
 
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