MG Rover is on the brink of collapse after Chinese firm Shanghai Automotive Industry Corporation (SAIC) said there was no chance of it entering into a partnership. Thousands of jobs will be lost.
MG Rover is on the brink of collapse after Chinese firm Shanghai Automotive Industry Corporation (SAIC) said there was no chance of it entering into a partnership with the manufacturer.
A £6.5 million lifeline from the Department of Trade and Industry (DTI) effectively gave administrators PricewaterhouseCoopers until Monday to rekindle relations with SAIC and save MG Rover’s future with a partnership deal.
‘Significant redundancies’ will be announced this weekend, thought to be up to 5000 of the 6000 staff at the Londbridge factory in Birmingham.
A statement from PricewaterhouseCoopers said: ‘We are extremely disappointed that SAIC has decided not to progress discussions and acquire the business. We are very conscious of the impact this news will have on the employees, their families and the business dependent on MG Rover Group.’
PricewaterhouseCoopers said it had received other expressions of interest in the company but that ‘none is capable of resulting in the sale of the complete business’.
The DTI admitted PricewaterhouseCoopers is not looking for any more money to prevent redundancies at the company.
Trade secretary Patricia Hewitt said: ‘This is devastating news for the workers, their families and the wider community.’
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