SORRY - DON'T HAVE NO CONFIDENT WITH LAND ROVERS
Last British car maker collapses Posted by MSN 4/8/2005
MG Rover, which built the original Minis, Land Rovers and MGBs, abruptly shuts down. It's the final straw for the British-owned auto industry.
By MSN Money wire reports
Cash-strapped car manufacturer MG Rover Group -- the last major British-owned car manufacturer -- succumbed to its mounting debts Friday and filed for a form of bankruptcy protection after a deal with a Chinese automaker fell through and a government loan was not granted.
Phoenix Venture Holdings, the parent company of Rover, said it had asked PricewaterhouseCoopers to take over administration of the company after it was forced to suspend production at its British factory Thursday when suppliers -- spooked by reports the Shanghai Automotive Industrial Co. was pulling out of a takeover deal -- stopped providing goods.
MG Rover confirmed Friday that the talks with SAIC in China had come to an end and that the negotiating team, including Rover Chairman John Towers, had left Shanghai. SAIC had reportedly insisted that MG Rover be able to demonstrate it was solvent at the point of signing a deal and for the following two years.Banks and insurers
check your credit.
So should you.
'The English Patient'
A British icon dating back to 1905, MG Rover has, in its various guises, produced some classic British cars alongside the mini, including the Morris Oxford, the Austin Seven, the MGB sports car and the cheap and cheerful Mini Metro.
Rover was sold to Germany's BMW in the 1990s -- when the German media dubbed it "The English Patient'' due to its poor financial health -- but returned to British ownership when BMW sold it to holding company Phoenix four years ago for 10 pounds plus costs.
Since then, however, Rover has struggled, and many say it was always likely to fail.
"Rover needed major investment and new models very quickly if it was to survive but, since the BMW years, Rover has not had it,'' said auto industry expert Tom Donnelly from nearby Coventry University.
"When Phoenix came in, BMW had already cherry-picked the company …'' he told Reuters. BMW retained the rights to make cars under the revered Mini name, and it sold the Land Rover division to Ford.
Other than a few niche makers who hand-build sports cars, there are no British-owned carmakers left besides Rover. Ford also owns two other historic British marques, Jaguar and Aston Martin. BMW owns Rolls Royce. Volkswagen owns Bentley.
Bad for Blair, worse for workers
The troubles at Rover, which will affect 6,000 workers at the company's Longbridge plant in central England and thousands more at companies that supply the factory with parts, come at a sensitive time for the government, with a general election just four weeks away.
Prime Minister Tony Blair talked by telephone with Chinese Prime Minister Wen Jiabao on Wednesday night and government officials had offered Rover a $188 million bridge loan to keep the company solvent to assist the deal.
"This is a terrible day for the work force of MG Rover and their families and for their suppliers," said Trade and Industry Secretary Patricia Hewitt, adding that the government would work with unions and Rover's future administrators to try to secure future car production at the factory.
St. Modwen Properties, the company that owns most of Longbridge, said it appeared certain the site would be turned into something other than a car plant.
"They've told us to turn up Monday,'' said 43-year-old Ashley Wilkes, who has worked at Longbridge for 18 years. "They've just told us we're entitled to 280 pounds ($524) for each year's service, up to the maximum of 12 years. It feels terrible.''
Last British car maker collapses Posted by MSN 4/8/2005
MG Rover, which built the original Minis, Land Rovers and MGBs, abruptly shuts down. It's the final straw for the British-owned auto industry.
By MSN Money wire reports
Cash-strapped car manufacturer MG Rover Group -- the last major British-owned car manufacturer -- succumbed to its mounting debts Friday and filed for a form of bankruptcy protection after a deal with a Chinese automaker fell through and a government loan was not granted.
Phoenix Venture Holdings, the parent company of Rover, said it had asked PricewaterhouseCoopers to take over administration of the company after it was forced to suspend production at its British factory Thursday when suppliers -- spooked by reports the Shanghai Automotive Industrial Co. was pulling out of a takeover deal -- stopped providing goods.
MG Rover confirmed Friday that the talks with SAIC in China had come to an end and that the negotiating team, including Rover Chairman John Towers, had left Shanghai. SAIC had reportedly insisted that MG Rover be able to demonstrate it was solvent at the point of signing a deal and for the following two years.Banks and insurers
check your credit.
So should you.
'The English Patient'
A British icon dating back to 1905, MG Rover has, in its various guises, produced some classic British cars alongside the mini, including the Morris Oxford, the Austin Seven, the MGB sports car and the cheap and cheerful Mini Metro.
Rover was sold to Germany's BMW in the 1990s -- when the German media dubbed it "The English Patient'' due to its poor financial health -- but returned to British ownership when BMW sold it to holding company Phoenix four years ago for 10 pounds plus costs.
Since then, however, Rover has struggled, and many say it was always likely to fail.
"Rover needed major investment and new models very quickly if it was to survive but, since the BMW years, Rover has not had it,'' said auto industry expert Tom Donnelly from nearby Coventry University.
"When Phoenix came in, BMW had already cherry-picked the company …'' he told Reuters. BMW retained the rights to make cars under the revered Mini name, and it sold the Land Rover division to Ford.
Other than a few niche makers who hand-build sports cars, there are no British-owned carmakers left besides Rover. Ford also owns two other historic British marques, Jaguar and Aston Martin. BMW owns Rolls Royce. Volkswagen owns Bentley.
Bad for Blair, worse for workers
The troubles at Rover, which will affect 6,000 workers at the company's Longbridge plant in central England and thousands more at companies that supply the factory with parts, come at a sensitive time for the government, with a general election just four weeks away.
Prime Minister Tony Blair talked by telephone with Chinese Prime Minister Wen Jiabao on Wednesday night and government officials had offered Rover a $188 million bridge loan to keep the company solvent to assist the deal.
"This is a terrible day for the work force of MG Rover and their families and for their suppliers," said Trade and Industry Secretary Patricia Hewitt, adding that the government would work with unions and Rover's future administrators to try to secure future car production at the factory.
St. Modwen Properties, the company that owns most of Longbridge, said it appeared certain the site would be turned into something other than a car plant.
"They've told us to turn up Monday,'' said 43-year-old Ashley Wilkes, who has worked at Longbridge for 18 years. "They've just told us we're entitled to 280 pounds ($524) for each year's service, up to the maximum of 12 years. It feels terrible.''
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