Government intervenes to save Rover
The Government is likely to proffer a reported £100m bridging loan to help car giant MG Rover win a deal with its Chinese partner.
Officials flew out to China to meet with counterparts of Shanghai Automotive Industrial Corporation, the firm set to invest up to £1 billion in the carmaker, safeguarding the 6,000 jobs at the Longbridge plant in Birmingham.
And four directors of Phoenix Venture Holdings, MG Rover’s holding company, have agreed to contribute “several million pounds”, according to reports.
The figure has been estimated at least £10 million.
The Transport and General Workers Union welcomed the Government cash, ring-fenced for training and research.
T&G leader Tony Woodley described talks as in the last chance saloon.
The money has been set aside “to tide” the firm over while the deal is being hammered out.
A spokeswoman for the Department of Trade and Industry said: “Throughout this process the Government has done all it can to help support the joint venture between MG Rover and SAIC.
“A team of DTI officials is in China this weekend holding discussions with SAIC. We are also in touch with the Chinese government.”
