TNM
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Registered: 5th Apr 04
Location: Nottingham Drives: VW Tiguan
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Rover suppliers offered £40m aid
Rover says Longbridge could close, but it has not given a timescale
A £40m support package has been put in place for firms that supply MG Rover, the UK trade secretary has said.
The announcement was made as MG Rover's 6,000 workers wait to find out if the stricken UK car maker can survive.
The firm called in advisers on Thursday amid reports it was on the verge of collapse after talks with a possible Chinese investor broke down.
With parts suppliers pulling credit and production stopped, industry analysts say its demise may be inevitable.
"I think it's a given that there will be some form of insolvency proceedings," Ian Gould, corporate recovery specialist at PKN told the BBC.
They [MG Rover] agreed the wording of the statement that was read out by Patricia Hewitt
Union boss Tony Woodley
Hewitt statement in full
Andrew Marr on the fall-out
Jeff Randall on who said what
Trade and Industry Secretary Patricia Hewitt is due at Rover's plant in Birmingham on Friday morning.
She told the BBC that the government had made the £40m support package available to Rover's suppliers in an effort to help them "find new business and secure their future".
She also pledged to do "absolutely everything I can" to help Rover's workers and other jobs in the area reliant on the company's business.
The fate of the firm, supported by successive governments, looks likely to become an election issue, say correspondents.
Premature?
Ms Hewitt was the first on Thursday evening to suggest the firm had called in administrators or receivers.
Union leaders said they had been told the same thing by Rover's management.
But late on Thursday night, MG Rover told the BBC's business editor Jeff Randall that it was not in administration and that Ms Hewitt's statement had been premature.
It said it had simply invited accountants PricewaterhouseCooper to advise on its position.
The government has been in intensive talks with both Rover and potential investor Shanghai Automotive Industry Corp to try to secure the firm's future.
A bridging loan was on offer, but only for a year and a limited sum - whereas Shanghai Automotive would complete the rescue only if Rover's solvency was guaranteed for two years.
Politicans lament plight
Rover workers fear for future
Early on Friday John Towers, the chairman of Phoenix Venture Holdings - the consortium that bought MG Rover from BMW for £10 in 2000 - left Shanghai after the talks broke down, to return to London.
Production halt
The day before, Rover had had to cease production as the supply of parts dried up.
"Our credit terms have been taken away from us since the press (coverage) on Tuesday," said Peter Beale, Phoenix's deputy chairman.
"The implications are devastating. We cannot survive this."
The company's apparently impending doom led to calls for support for its workforce.
"Yet again I'm having to write an obituary for another stalwart of the British engineering and manufacturing industry," said Tony Murphy, Amicus national officer for the automotive industry.
"Longbridge and the whole of the West Midlands are becoming ghost towns."
ROVER TIMELINE
May 2000: BMW sells Rover to Phoenix Venture Holdings for a symbolic £10, saving thousands of jobs
November 2001: Rover says it will spend £300m on building a new medium-sized car
November 2003: Rover stops production for three days to clear a backlog of stock
October 2004: Rover reports a £77m loss for 2003, down from a £95m loss in 2002
November 2004: Rover says it is in talks with China's Shanghai Automotive Industry Corporation about a £1bn joint venture
February 2005: Gordon Brown discusses Rover with Chinese leaders as concerns grow the deal may be at risk
April 2005: The government offers a £100m bridging loan to Rover amid fears that the Chinese deal may collapse
Talks with SAIC end without a deal, MG Rover is on the brink
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Siberia
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Registered: 9th Oct 03
Location: Leprechaun Land Drives : Zafira GSI
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dont understand why there been given 'aid' ? arent they going bust cos there not selling any cars? its just prolonging the enevitable and using money in the proccess
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TNM
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Registered: 5th Apr 04
Location: Nottingham Drives: VW Tiguan
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its trying to help them sort of the deal with the chinese but its not going to happen now.
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Skipz
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Registered: 23rd Aug 03
Location: Falkirk: Drives:nothing but gettin another Corsa
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MATT Wheres your pic  I AM deffinately not reading the ESSAY!!!!
Siberia if MG Rover hadnt been Split up by BMW i reckon they wouldn't be in this mess, look how Land rover are doing under the ownership of ford 
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Graham
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Registered: 12th Oct 03
Location: Lincoln.
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i was hoping for it to be a joke 
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Cybermonkey
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Registered: 22nd Sep 02
Location: Sydney, Australia
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oh well  more shit now off the roads.
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TNM
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Registered: 5th Apr 04
Location: Nottingham Drives: VW Tiguan
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quote:
Originally posted by h18_oab
MATT Wheres your pic I AM deffinately not reading the ESSAY!!!!
Siberia if MG Rover hadnt been Split up by BMW i reckon they wouldn't be in this mess, look how Land rover are doing under the ownership of ford
Landrover werent having any problems with people buying the cars where as rover where. So splitting the company up was the best thing they did! Why drag landrover down the pan just for the sake of not splitting them up? 
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Jambo
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Registered: 8th Sep 01
Location: Maidenhead, Drives: VXR Arctic
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Pics? 
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Ojc
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Registered: 14th Nov 00
Location: Reading: Drives : Clio 197
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Get rid of Rover, its been dieing for years.
The MG series is quite good though and is deffo a step in the right direction.
I would own the new MG ZR180, its well nice.
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