mikeyb
04-16-2005, 10:07 AM
<TABLE cellSpacing=0 cellPadding=0 width="90%" border=0><TBODY><TR><TD class=text18 vAlign=top>MG Rover (update): 5000 redundancies, liquidation confirmed<!--//title--></TD></TR><TR><TD class=text11>15 Apr 05 18:11</TD></TR><TR><TD>http://www.channel4.com/4car/media/generic/spacer.gif</TD></TR></TBODY></TABLE><!-- //PAGE TITLE & DATE --><!-- FEATURE STORY HOLDING TABLE --><TABLE cellSpacing=0 cellPadding=0 width="90%" border=0><TBODY><TR><TD class=text11><TABLE class=featuretopimage cellSpacing=1 cellPadding=0 width=175 align=left border=0><TBODY><TR><TD colSpan=2>http://www.channel4.com/4car/media/logos/02-medium/mg-rover.jpg</TD></TR></TBODY></TABLE>It took a week in the end for the news to be confirmed, but as suspected last Friday, when it became clear that Shanghai Automotive was pulling out of the partnership deal, MG Rover has finally reached the end of the road. In a press conference this afternoon at the Longbridge factory, spokemen for PricewaterhouseCoopers, the administrators tasked with winding the company up, said: "Overall, we expect there to be just under 5000 employees made redundant. We are still trying to finalise the exact numbers."
Around 400 workers will be retained in the Powertrain engine division, and 25 at MG Sport & Racing, both of which have also gone into administration; a further 600 employees will be retained short-term to finish making the 1000 or so uncompleted vehicles on the production line, and to mothball the plant until a buyer can be found. MG Rover's assets are expected to be sold off piece by piece. A PwC spokesman added that "we will carry on with the interested parties who want to talk about pieces of the business. At the same time we will of course be mothballing the facility here& so that we do have time to go back to SAIC and ask them to tell us, if they do have any interest, really what that interest is."
Prime Minister Tony Blair, Chancellor Gordon Brown and Trade and Industry Secretary Patricia Hewitt were quick to appear on the scene in Birmingham, Brown delaying a trip to the US for a G7 finance ministers' meeting. Blair said: "It's been a terrible blow because the workforce is a fantastic workforce and everyone has worked so hard over the past few years to try and turn the company round." He also spoke on Jeremy Vine's Radio 2 show, telling an MG Rover employee who had taken part in a phone-in that "I'm really sorry. I just want you to know that we tried every single thing we possibly could to put the deal together with the Chinese company. In the end I'm afraid it has been bad news."
Support workshops will be set up at Longbridge to help the redundant workers find new jobs, or apply for appropriate re-training; PwC has indicated that they can expect to receive £280 a week for every year of service at MG Rover. PwC is also looking into how to treat employees who have MG Rover cars on the company's special lease plans for staff, though it says that it will not be repossessing any vehicles at short notice.
This is so sad!!
http://www.channel4.com/4car/news/news-story.jsp?news_id=12089
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Around 400 workers will be retained in the Powertrain engine division, and 25 at MG Sport & Racing, both of which have also gone into administration; a further 600 employees will be retained short-term to finish making the 1000 or so uncompleted vehicles on the production line, and to mothball the plant until a buyer can be found. MG Rover's assets are expected to be sold off piece by piece. A PwC spokesman added that "we will carry on with the interested parties who want to talk about pieces of the business. At the same time we will of course be mothballing the facility here& so that we do have time to go back to SAIC and ask them to tell us, if they do have any interest, really what that interest is."
Prime Minister Tony Blair, Chancellor Gordon Brown and Trade and Industry Secretary Patricia Hewitt were quick to appear on the scene in Birmingham, Brown delaying a trip to the US for a G7 finance ministers' meeting. Blair said: "It's been a terrible blow because the workforce is a fantastic workforce and everyone has worked so hard over the past few years to try and turn the company round." He also spoke on Jeremy Vine's Radio 2 show, telling an MG Rover employee who had taken part in a phone-in that "I'm really sorry. I just want you to know that we tried every single thing we possibly could to put the deal together with the Chinese company. In the end I'm afraid it has been bad news."
Support workshops will be set up at Longbridge to help the redundant workers find new jobs, or apply for appropriate re-training; PwC has indicated that they can expect to receive £280 a week for every year of service at MG Rover. PwC is also looking into how to treat employees who have MG Rover cars on the company's special lease plans for staff, though it says that it will not be repossessing any vehicles at short notice.
This is so sad!!
http://www.channel4.com/4car/news/news-story.jsp?news_id=12089
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