UK carmaker MG Rover collapses

Life Cars & Motorcycles
1

As the former owner of a splendid, when it was running, 1968 Rover 2000 TC, and a few MG’s along the way, I am saddened to hear this. As inevitable as it may be.

[quote]UK carmaker MG Rover collapses
Thu Apr 7, 2005 06:46 PM ET
By Michael Smith

LONDON, April 7 (Reuters) - Britain’s last major carmaker MG Rover collapsed on Thursday, putting 6,000 jobs at risk after it failed to secure an alliance with a potential Chinese partner, the government said.

The 100-year-old carmaker has gone into receivership, a form of bankruptcy protection under which a court-appointed third party takes control of the business, the UK’s Trade and Industry Secretary Patricia Hewitt told a news conference late on Thursday.

“MG Rover has announced that their board has decided to call in the receivers. This is a devastating blow to everybody involved – the workers and their families, the company’s suppliers and the wider community,” Hewitt said.

The move came after China’s Shanghai Automotive Industry Corp. (SAIC) said it would not invest in the company.

“In the end, SAIC made it clear that they were not confident about the future solvency of MG Rover, and therefore there was no reasonable prospect of a deal,” she said.

The collapse could impact 6,000 staff and thousands more supply jobs, creating a political headache for the British government in the run-up to a general election on May 5.

Hewitt said the government could not give MG Rover a 100 million pound loan without the prospect of a deal with the Chinese automaker.

“This is an issue between the government and MG Rover,” an SAIC spokesman said.b[/b]
reuters.com/financeNewsArtic … ID=8120184[/quote]

2

Had a couple of Rovers in my time: SD1 straight-six, and an 820 - very comfy.

I still want an SD1 Vitesse twin plenum. And a Jensen Interceptor.

3

Does this mean the total extinction of exclusively British automotive endeavour? I mean isn’t Rolls Royce owned by Uni-President or something???

BTW My father-in-law had a Triumph Stag (V8 convertible) that was a a money-sucking blackhole that never ran smoothly or started when you needed it. This may help explain the death of Britsh cars.

4

At least Triumph is going from strength to strength… The new face of the company has put Hinckley back on the map of credible international bike manufacturers… The new Speed Triple and Sprint ST in particular are serious contenders for best in class, even up against the omnipotent Japanese competition… It would be a pity to see MG Rover go however…

Speed Triple

Sprint ST

5

I had a Stag for a while. Bombproof, fast and sexy. Started first time, every time.
And look at those Triumphs! Even when they make pig-ugly Tronbikes they STILL look sexy! :notworthy:

6

Both my Rovers were great except for the SD1 which filled the cabin with steam one day when the heater broke. And the 800 which was front wheel drive and refused to go round corners. Apart from that they were great. The 800 never failed to start. I did 22,000 miles in that in 9 months.

Life story of a particular Rover 820Si (I knew all the owners)

1994 -

7

Thanks for mentioning the Stag. I have a buddy in southern California who has one and drives it everyday. He has found a garage which seems to have a special affinity for keeping his auto on the road.
I personally am amazed it has done so well, but it keeps plugging along. His daily communte is approx. 35 miles each way in LA traffic.

8

A bit more rather ambiguous news.

[quote]MG Rover may get government lifeline
TRACEY BOLES, Sun 10 Apr 2005
THE government is considering a partial rescue of MG Rover, which was placed in the hands of administrators on Friday.

The news comes as the company

9

Rover still alive. Article is on page 12 of the business section of todays Taipei Times. Here’s the internet version.
taipeitimes.com/News/worldbi … 2003250186

10

I had a 1998 Rover 820 - an automatic. It was such a swish car and i loved it to bits. I gave it to my mate when I came to Tawian. Absolutely mint condition and very comfortable.

I had a vauxhall that broke down and a crappy Ford Mondeo which scrap yard cars put to shame.

I hope Rover bounces back.

11

I had a 1969 MGB in high and college. Best babe magnet on the road.

12

I would love an MGB.

13

The latest news on Rover/MG

[quote]The purchase of MG Rover could probably have a bigger response in Western business world in comparison with Roman Abramovich’s acquisition of Chelsea, 04/30/2005 16:56

The British automobile company MG Rover, which is currently experiencing a financial collapse, might become the property of a Russian businessman in the near future. It is not ruled out that MG Rover’s new owner will be the company Ruspromavto, owned by oligarch Oleg Deripaska.

Alexander Yushkevich, the chairman of Ruspromavto’s board of directors, said that such an acquisition should fit the development strategy for the Russian company, which had not yet considered the possibility to buy the British car maker. The asset is very attractive for the Russian company in theory. “MG Rover has a range of very interesting models - the 35th, 45th, 75th. There are a lot more of them in Russia in comparison with Italy’s Fiat, for example,” Alexander Yushkevich said.

Potential investors will make the final decision after the financial evaluation of the collapsing British maker. It is noteworthy that the process may take about a year.

The idea to make a British car maker the property of a Russian company did not turn out to be unreal. The majority of Russian businessmen are not interested in MG Rover. Russian oligarchs, though, have a special interest in foreign cars. “Rover is an interesting brand, and it does not cost a lot right now. It might be an interesting offer for Oleg Deripaska, for example, who controls the GAZ company (Russian car maker),” banker Alexander Gafin said.

Analysts have not come to any conclusion yet in their evaluations of the bankrupt British company. Alexander Yushkevich of Ruspromavto believes that the decision will depend on a variety of factors. “Will the company be put up for auction with its debts or will it be divided into separate assets? How heavy will the debt burden of the company be? Will the company’s team of managers and engineers stay or will they quit? It will probably take a year to find answers to all those questions,” Yushkevich said.

If Russian businessmen eventually decide to acquire MG Rover, it will become another transaction, in which a Russian citizen becomes an owner of a foreign car maker. Nikolai Smolenski, 23, the son of a well-known Russian banker, acquired the British sports car maker TVR in July of 2004. The factory reportedly cost the enterprising young man $50 million.

At the end of 2003 the Russian steel-making enterprise Severstal, owned by Aleksei Mordashov (the person, who ranks 7th on the list of Russia’s richest men, and owns the 5.1-billion-dollar fortune) purchased the Detroit-based Rouge Industries for $280 million.

It is noteworthy that Roman Abramovich’s acquisition of football club Chelsea became the most well-known investment of a Russian citizen in foreign business (Abramovich owns $14.7 billion, according to Forbes magazine). A football club, however, associates with an expensive toy, an entertainment for the businessmen, rather than with a business investment. The purchase of MG Rover could probably have a much bigger response in business circles of the West.
Read the original in Russian: (Translated by: Dmitry Sudakov)
english.pravda.ru/main/18/89/358 … Rover.html[/quote]

14

I used to have a little red MGB convertible. It was a fun car to cruise around in. The bottom rusted out and one of the batteries fell out once.

15

MG still make mad cars. They even changed the Rover 75 from front to rear wheel drive, and then put a huge V8 in it, rekindling memories of the V8 Vitesse. Now THAT was a car!