Goodbye MG Rover

[pna]

I think its a real shame, and I did some work with the people at Longbridge a few years ago so I'm sorry for them, however surely the reason for the problems are they are not making cars that people want to buy ...

I do not think Governments should have an obligation to pick up the pieces for a failing business.

 

[david and julie]

The foreign firms mentioned here may not be much better than our own. They are here for the EU subsidies, which incidently, we are not allowed to give Rover. The EU needs to take its share of the blame here for interferring in market forces for political reasons.

Her plans, confirmed yesterday and due to be outlined in March or April, come as Nissan, part-owned by Renault, is considering building a new model to replace the Primera at Sandouville, a French plant operated by Renault, rather than at Sunderland.
Ms Kroes wants to end the "bidding wars" for state aid among EU countries by companies such as Nissan. It got big government grants to build the new Micra at Sunderland rather than at Flins, in France, two years ago.

http://www.guardian.co.uk/eu/story/0,7369,1399490,00.html

Notice the big difference here though, Renault wants grants to build in France not in the emerging memberstates or suchlike. Renault are being more nationalistic and we urgently need to do the same.
Is it a coincidence Rover going in April, which is the time for ending subsidies mentioned in the above article? The more stupid part is that they don't want to end these subsidies they just want to move them elsewhere!

We desperately need out of this EU inspired, politically motivated, tinkering in market forces.

 

[pipme]

Happening here mate, aerospace business moved elsewhere in UK Having been offered grants .. that sticks a bit doesn't it ? probably using our own taxes to entice the work away !! Doesn't bother me too much now tho'

 

[david and julie]

I smell a bit of delaying or cover up tactics in the offing here, until after the election or more likely permanantly. The Rover collapse is being investigated by the, FRC.The Financial Reporting Council, which is an independant quango, which reports in private to the DTI. Here are their departments (or snouts if you like pipme)

Accounting Standards Board
Auditing Practices Board
Professional Oversight Board For Accountancy
Financial Reporting Review Panel
Accountancy Investigation & Discipline Board

Whoever actually performs the inquiry, within this independant outfit, then reports to the DTI who then decide what to do, again behind closed doors, about the mistakes they also made in this affair. At this stage the Gov has ruled out a proper and truthfully independant investigation, I have a sneaky feeling more public money may have gone into(and maybe out of) this venture than we were told.

There is more to all this than meets the eye, when Tony Blair was on the news, walking round Longbridge, he said it is a shame "but we are going to turn the site into an industrial park" which will create more jobs.

Was this a quick decision or an already known use for a massive piece of property? Does anyone know who actually owns the site?

 

[pipme]

....St. Modwen Properties, which owns most of MG Rover's Longbridge site, on Friday told Reuters it was an "unlikely possibility" the plant would be saved and redevelopment seemed inevitable.

Rent has been paid until June apparently.

 

[petewood]

I heard earlier today that there is to be a full enquiry into financial managment at Rover. Any bets as to the outcome?

 

[david and julie]

I heard earlier today that there is to be a full enquiry into financial managment at Rover. Any bets as to the outcome?

Forgone conclusion I reckon, there are too many vested interests involved here, the Gov, through the DTI, selected the enquiry team and set the remit, then ordered that the outcome not be made public. The report is to be given to the DTI, who have been involved since before the BMW days, to decide what to do. In doing this the Gov is letting the DTI be judge and jury, despite their mistakes and failings. If the Gov really was interested in the truth, the enquiry would be judicial or public, otherwise it sounds more like a cover up exercise(which it no doubt will be). This whole exercise looks like another sham enquiry, just like the others (such as Iraq) were. One thing is for certain the losers will be the workers and the taxpayer. The Rover board/owners, civil servants and politicians will all win.

The public needs to remember, that whilst it is sad about the loss of jobs, you are talking hundreds of millions of public funds that have been lost here and they are still putting more in. Any enquiries should be investigating this as well as any Rover management issues.