Menu
11/04/2005
Government loan for MG Rover
Troubled car manufacturer MG Rover has received a government loan to help sustain the business while administrators PricewaterhouseCoopers (PwC) continue to work on reopening talks to save the firm.
Trade and Industry Secretary Patricia Hewitt announced a £6.5 million loan for the company, which went into administration on Friday following the collapse of a possible deal with Chinese carmakers, the Shanghai Automotive Industry Corp (SAIC).
The loan will enable MG Rover to stay in business for another week and keep nearly 6,000 employees in their jobs while the administrators work on establishing a possible deal with SAIC.
Ian Powell, a partner in PwC, said that they were "pleased" to have received the government funding, saying that it had provided "vital breathing space to evaluate the interest of all parties." However, he stressed that it was only "a small step forward".
PwC partner Tony Lomas said: "There is a possibility that our appointment as administrators creates an opportunity to resolve some of the concerns around the previous deal and we now seek to engage in discussions with SAIC as soon as possible."
However, it has been reported that SAIC are unlikely to consider a joint venture with MG Rover while the company is in administration.
PwC confirmed that the car manufacturer, along with its subsidiary, engine and gearbox manufacturer Powertrain, are incurring "very significant losses" –estimated to be between £20 and £25 million per month.
The administrators said that the majority of the workforce had been sent home with full pay, although a small number of employees remained at the Longbridge site in order to help with the administration.
Car production at the site had already ceased when PwC assumed control of MG Rover's affairs on Friday and the administrators said that there were "no plans" to resume car production, although it is expected that limited engine production will continue at Powertrain.
Conservative leader Michael Howard has criticised the government for reacting "too slowly" to the crisis. He said yesterday: "I believe that the government have got involved in this situation at far too late a stage. Government must have known what was going on a year ago and they seem to have been very slow and very late into the business of seeing what they could to do help."
Liberal Democrat trade and industry spokesperson Malcolm Bruce also said that the bridging loan came "too late" for MG Rover. Mr Bruce said: "If the government had really been serious about saving Rover it would have got involved five years ago rather than trying to play the knight in shining armour when it was already too late."
(KmcA)
Trade and Industry Secretary Patricia Hewitt announced a £6.5 million loan for the company, which went into administration on Friday following the collapse of a possible deal with Chinese carmakers, the Shanghai Automotive Industry Corp (SAIC).
The loan will enable MG Rover to stay in business for another week and keep nearly 6,000 employees in their jobs while the administrators work on establishing a possible deal with SAIC.
Ian Powell, a partner in PwC, said that they were "pleased" to have received the government funding, saying that it had provided "vital breathing space to evaluate the interest of all parties." However, he stressed that it was only "a small step forward".
PwC partner Tony Lomas said: "There is a possibility that our appointment as administrators creates an opportunity to resolve some of the concerns around the previous deal and we now seek to engage in discussions with SAIC as soon as possible."
However, it has been reported that SAIC are unlikely to consider a joint venture with MG Rover while the company is in administration.
PwC confirmed that the car manufacturer, along with its subsidiary, engine and gearbox manufacturer Powertrain, are incurring "very significant losses" –estimated to be between £20 and £25 million per month.
The administrators said that the majority of the workforce had been sent home with full pay, although a small number of employees remained at the Longbridge site in order to help with the administration.
Car production at the site had already ceased when PwC assumed control of MG Rover's affairs on Friday and the administrators said that there were "no plans" to resume car production, although it is expected that limited engine production will continue at Powertrain.
Conservative leader Michael Howard has criticised the government for reacting "too slowly" to the crisis. He said yesterday: "I believe that the government have got involved in this situation at far too late a stage. Government must have known what was going on a year ago and they seem to have been very slow and very late into the business of seeing what they could to do help."
Liberal Democrat trade and industry spokesperson Malcolm Bruce also said that the bridging loan came "too late" for MG Rover. Mr Bruce said: "If the government had really been serious about saving Rover it would have got involved five years ago rather than trying to play the knight in shining armour when it was already too late."
(KmcA)
Related UK National News Stories
Click here for the latest headlines.
23 August 2007
Fourth Arrest Over Biker Murder
A fourth man has been arrested in connection with the murder of biker Gerard Tobin. Mr Tobin, 35, of south London was shot dead as he travelled home on the M40 from the Bulldog Bash bikers' festival at Long Marston near Stratford, Warwickshire on August 12.
Fourth Arrest Over Biker Murder
A fourth man has been arrested in connection with the murder of biker Gerard Tobin. Mr Tobin, 35, of south London was shot dead as he travelled home on the M40 from the Bulldog Bash bikers' festival at Long Marston near Stratford, Warwickshire on August 12.
11 September 2009
Government Seeks To Bar Directors Following MG Rover Collapse
Evidence is being compiled to bring proceedings against the MG Rover Group (MGRG) directors to prevent them running other companies in the future, Business Secretary Lord Mandelson has announced. The announcement was made today as the government published the results of an independent investigation into the collapse of MGRG.
Government Seeks To Bar Directors Following MG Rover Collapse
Evidence is being compiled to bring proceedings against the MG Rover Group (MGRG) directors to prevent them running other companies in the future, Business Secretary Lord Mandelson has announced. The announcement was made today as the government published the results of an independent investigation into the collapse of MGRG.
08 April 2005
MG Rover in administration, Government pledges £40M to bail out suppliers
As MG Rover went into administration today Trade and Industry Secretary Patricia Hewitt moved to help suppliers of the beleagured MG Rover following its failure to reach agreement with the Shanghai Automotive Industry Corporation on a joint venture.
MG Rover in administration, Government pledges £40M to bail out suppliers
As MG Rover went into administration today Trade and Industry Secretary Patricia Hewitt moved to help suppliers of the beleagured MG Rover following its failure to reach agreement with the Shanghai Automotive Industry Corporation on a joint venture.
04 October 2012
Missing Girl Hunt Resumes
Dyfed-Powys Police are continuing their search for five-year-old missing April Jones. Police have been given a further 12 hours to question Mark Bridger, 46, who lives locally on suspicion of her abduction. Yesterday they released a picture of his blue Land Rover Discovery.
Missing Girl Hunt Resumes
Dyfed-Powys Police are continuing their search for five-year-old missing April Jones. Police have been given a further 12 hours to question Mark Bridger, 46, who lives locally on suspicion of her abduction. Yesterday they released a picture of his blue Land Rover Discovery.
03 October 2012
Police Release Arrested Man Vehicle Picture In Missing Girl Search
Dyfed-Powys Police have released a picture of a blue Land Rover Discovery belonging to a man who has been arrested in connection with the disappearance of April Jones. She was last seen by another child near her home in the Bryn Y Gog estate in Machynlleth, mid Wales, at around 7pm on Monday.
Police Release Arrested Man Vehicle Picture In Missing Girl Search
Dyfed-Powys Police have released a picture of a blue Land Rover Discovery belonging to a man who has been arrested in connection with the disappearance of April Jones. She was last seen by another child near her home in the Bryn Y Gog estate in Machynlleth, mid Wales, at around 7pm on Monday.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
