The rump remains of what was once the world's fourth largest automaker shuttered it's last factory today. Britain MG/Rover Group, that nations last domestically owned volume car maker, has been unable to pay its bills and is asking the government to bail it out. The company had been hoping to find a foreign buyer but with a failed merger with BMW behind it and a series of failed talks with various Asian automakers things are not looking good for MG/Rover.
Back in 1994 the company was bought by BMW and its future looked secure, however, BMW ran into its own troubles and had difficulty coming up with the money to design new models at Rover. Thus the Germans broke the company up spinning off the MG & Rover brands, selling the Land Rover brand to Ford, and keeping the Mini brand for itself. Experts are saying that doomed MG/Rover by removing its two most profitable brands and losing its US dealership network. The management of MG/Rover is holding out hope for a last minute merger with China's #1 automaker Shanghai Automotive Industrial Corp (SAIC) but reportedly the Chinese are loath to buy out the lose making car company unless the British government kicks in generous subsidies. Alternatively, the mass car brand Rover could be allowed to die while the sports car brand MG could survive as a boutique maker.
What is for sure is that currently MG/Rover's 6,000 strong work force in the English midlands has been furlowed without pay. This is looking like the final chapter in the saga of British owned car makers.
Back in 1994 the company was bought by BMW and its future looked secure, however, BMW ran into its own troubles and had difficulty coming up with the money to design new models at Rover. Thus the Germans broke the company up spinning off the MG & Rover brands, selling the Land Rover brand to Ford, and keeping the Mini brand for itself. Experts are saying that doomed MG/Rover by removing its two most profitable brands and losing its US dealership network. The management of MG/Rover is holding out hope for a last minute merger with China's #1 automaker Shanghai Automotive Industrial Corp (SAIC) but reportedly the Chinese are loath to buy out the lose making car company unless the British government kicks in generous subsidies. Alternatively, the mass car brand Rover could be allowed to die while the sports car brand MG could survive as a boutique maker.
What is for sure is that currently MG/Rover's 6,000 strong work force in the English midlands has been furlowed without pay. This is looking like the final chapter in the saga of British owned car makers.
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