£6.5 Million lifeline for MG Rover

[Filuwaúrdjan]

Government tries to stop redundencies

[Richard]

MG Rover?

[Soup18]

This is the company that created the Land Rover, right?

[True Federalist (진정한 연방 주의자)]

Land Rover got spun off from Rover about 5 years ago and was bought by Ford.  I can see Ford as being interested in buying the Rover brand if the price is right, both to end confusion such as Soup18’s and to give its Land Rover dealers in the US and elsewhere a way to diversify beyond SUV’s.  (MG Rover does not at present sell cars in the US, altho MG did sell a couple decades ago some before it combined with Rover.) Given the failure Chrysler had with its Eagle brand when it tried introducing a co-brand for its Jeep dealers, I don’t expect that Ford would place a high value on being able to do so with Rover.  Also, I see no reason why Ford would be at all interested in MG or in MG Rover’s debt and pension liabilities, so they certainly would only get involved if MG Rover is broken up as part of bankruptcy.

[Peter]

I'm appalled at the government - I would never give out corporate welfare. If Rover isn't profitable, which considering the continual crises its in, it probably isn't, then it deserves to hit the can. There's no good trying to stop the inevitable, you never will: The market will take care of Rover and send it on its way to history.

As for the unemployed - the government should do what it can to help those made redundant, whether through retraining or trying to bring new investment into the area, but it shouldn't continually prop up an ailing company.

Whats even more appalling is that its clearly been done with electoral motives in mind because of the close seats in the areas around the plant.

[minionofmidas]

I'm appalled at the government - I would never give out corporate welfare. If Rover isn't profitable, which considering the continual crises its in, it probably isn't, then it deserves to hit the can. There's no good trying to stop the inevitable, you never will: The market will take care of Rover and send it on its way to history.

As for the unemployed - the government should do what it can to help those made redundant, whether through retraining or trying to bring new investment into the area, but it shouldn't continually prop up an ailing company.

Whats even more appalling is that its clearly been done with electoral motives in mind because of the close seats in the areas around the plant.

Sigh...it's called "politics"...

[Filuwaúrdjan]

I think the money is being given to prevent job losses in the short term, rather than prop up MG Rover, which is in adminstration now.
I suspect there's a chance that something could be salvaged out of this, but the current company is dead, thanks to the kleptomania of it's executives.

If anyone wants a laugh, a certain Cllr. J.A.M.Hemming of Yardley, Birmingham is playing his usual ego-politics with this and (this is rather amusing) blaming the DTI for the collapse of his mate's company.

[minionofmidas]

It might sometimes be wiser to assume that not everybody here is an ardent follower of British local politics, Al...

[Filuwaúrdjan]

It might sometimes be wiser to assume that not everybody here is an ardent follower of British local politics, Al...

Oh. Right. My apologies.

I was refering to Cllr. John Hemming, leader of the LibDems on Birmingham City Council, Deputy Leader of Birmingham City Council (in an unholy coalition with the Tories), serial candidate in Birmingham Yardley (1992, 1997, 2001 and this year as well) all round egomaniac and the very stereotype of the irritating West Midlands businessman who likes to brag about how much money he has.

[minionofmidas]

Yardley is a Lib-Lab marginal, right. I dunno about "mate", but I don't see how an opposition candidate with a serious chance of winning, from the area, blaming the government for something like this should be funny or, well, er, worth reporting...in other news, Tony Blair breathed today.

[Democratic Hawk]

Al, Peter you both make very good points re-the role of government

Al, I think the government is right with the £6.5million and the government's motives are sincere (had it been a Tory government and they had done this, I'd seriously doubt their sincerity with them being the party of mass unemployment) in wanting to hold off any redundancies - but it can't continue to happen, not in the long term. It certainly isn't their job to prop up the company

Meanwhile, the 'pilfering' needs to be investigated, while the administrators, the DOTI and the trade unions need to work together to sound out any options

As for Hemming, lets pray 'tis that opportunist, who faces the electoral backlash

Dave

[Filuwaúrdjan]

Yardley is a Lib-Lab marginal, right.

Yep. Has been since 1992.

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His mates ran the Phoenix Consortium that bought MG Rover from BMW in 2000. Interestingly Hemming was kicked out of it, because BMW wouldn't deal with anything that had anything to do with him (he's not got a reputation for being all that trustworthy).

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Ahhh... but you haven't seen what he said. He's been ranting about how the DTI "briefing against MG Rover" resulted in it collapsing.

Strange guy, Hemming.

[minionofmidas]

Lol.
Maybe he's personally losing money out of the Rover bankruptcy...that's what that complaint sounds like.

[Filuwaúrdjan]

Lol.
Maybe he's personally losing money out of the Rover bankruptcy...that's what that complaint sounds like.

Well, MG Rover's finances were so byzantine it wouldn't suprise me a great deal. Apparently someone's going to investigate them.

On the other hand, Hemming has a habit of making... interesting... posts on Usenet...

[True Federalist (진정한 연방 주의자)]

One of the beneficial things about bankruptcy is that it can be used to salavge the still viable parts of companies so that they can continue to operate.  If the company would be profitable except for its debt and pension liabilities, then it is quite possible for MG Rover to emerge from bankruptcy as a viable company, not unlike K-Mart or MCI have done over here.  Of course, those who have their capital, loans, and/or pensions reduced or wiped out in the process won’t be at all happy about this.

I did learn something wierd from Wikipedia, assuming that it’s true.  Apparently BMW still holds the rights to the Rover brand name, and it only leased it to MG Rover.  I still think that Ford will be interested in picking up slected pieces of the company if it goes into liquidation.  Getting the Rover brand and also the non-American rights to the Vanden Plas brand would make a good fit for Ford.  The MG and maybe the Morris brand names might still have some value, but given the current overcapacity in the European car market, I doubt if the Longbridge facility itself will attract much interest if the company gets broken up.  If Longbridge is to be saved, the company will need to get through bankruptcy relatively unscathed.