Hopes of saving Rover collapse

Administrators at striken car manfacturer Rover have announced that there is no hope of a deal to save jobs at the Longbridge plant.

PricewaterhouseCoopers, the administrator called in to try and save MG Rover, has told the government that it will not be applying for any further government loans to stave off redundancies at the company.

PwC has told the government that Shanghai Automotive Industry Corporation (SAIC) is “not willing to acquire either the whole or parts of the MG Rover or Powertrain businesses on a going concern basis out of administration, nor are they willing to establish a UK joint venture incorporating the whole or parts of the MG Rover or Powertrain businesses”.

Secretary of state for trade and industry, Patricia Hewitt said: “This is devastating news for the workers, their families and the wider community.

“Over the last week the unions and government have done everything possible to try and secure Longbridge’s future as a going concern.

“The challenge is now for all of us to work together to support the workforce and their families and to take the steps that are needed to secure jobs and economic strength in the West Midlands economy.

“I will be speaking to the unions and all concerned today and a full announcement on the support package will be made shortly.”

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