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MG Rover in administration

08 April 2005

MG Rover looks to be on the verge of collapse. The stricken car maker appointed PWC as administrator today and the Government launched an aid package for the thousands of workers in the West Midlands supply chain.

MG TF front tracking medium

MG Rover looks to be on the verge of collapse. The stricken car maker appointed PWC as administrator today and the Government launched an aid package for the thousands of workers in the West Midlands supply chain.

The administrator will investigate the best course of action. It is likely that MG Rover’s car manufacturing operation will close, but other parts of the company could be salvaged.

The crisis was sparked when partnership negotiations with Shanghai Automotive Industry Corporation ended yesterday without success.

Vice-chairman Peter Beale admitted last night that the company could not survive without the partnership. MG Rover had hoped to develop its much-needed new small cars with the Chinese firm.

Trade and Industry Secretary Patricia Hewitt today launched a £40 million aid package for the supply network in the West Midlands.

The Longbridge plant in Birmingham employs 6000 workers, but a further 15,000 people in the area are employed in the supply chain.

Ian Powell, joint administrator, said: ‘The business will continue over the weekend. We have asked employees to return to work next week. We will be working closely with management, staff, unions, key suppliers, creditors and the Government as the situation develops.’

Click here for our Q&A explaining what is likely to happen if the company closes. Follow the link to find out where you stand if you own an MG or Rover, or are thinking of buying one.

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