MG Rover Workers Fear for Their Future as Deal with Chinese Fails

The collapse of a deal with the Shanghai Automotive Industry Corporation has sent shockwaves through the British car industry, leaving thousands of workers and suppliers facing an uncertain future. The Government is finalising a £40m support package for firms that supply the MG Rover plant at Longbridge in Birmingham, in a bid to limit the damage to the local economy. Workers arriving at the plant today expressed pessimism about their future prospects, and union leaders are bracing for job losses among the 6,000 employees and an estimated 18,000 suppliers.

Key Takeaways:

• The collapse of the deal with the Shanghai Automotive Industry Corporation has left MG Rover on the brink of collapse, with administrators expected to be formally appointed later today.
• A £40m support package is being announced to help retrain MG Rover workers affected by the crisis.
• The support package will be targeted at firms that supply the Longbridge plant, in an effort to limit the damage to the local economy.
• Union leaders, including Tony Woodley of the Transport and General Workers' Union, are bracing for job losses among the 6,000 MG Rover employees and an estimated 18,000 suppliers.
• South Ribble MP David Borrow expressed concern about the impact on the local community, citing the strong links between the Leyland area and the Rover group.
• MG Rover has multiple showrooms in Lancashire, including in Preston and Chorley, which are now facing an uncertain future.
• The collapse of the deal has been met with a sense of shock and disappointment from workers, with many having believed that a deal with the Chinese firm was about to be signed.

Statistics:

• 6,000: The number of MG Rover employees who face job losses.
• 18,000: The estimated number of suppliers who face job losses.
• £40m: The value of the support package being announced to help retrain MG Rover workers.
• 9.20pm: The time at which John Towers, head of MG Rover's owners Phoenix Venture Holdings, telephoned Trade and Industry Secretary Patricia Hewitt to confirm the collapse of the deal.

Sources:

• "MG Rover dealers fear for their future as deal with Chinese collapses", The Guardian, no date.
• South Ribble MP David Borrow, quoted in The Guardian, no date.
• Tony Woodley, general secretary of the Transport and General Workers' Union, quoted in The Guardian, no date.
• Patricia Hewitt, Trade and Industry Secretary, quoted in The Guardian, no date.
• John Towers, head of MG Rover's owners Phoenix Venture Holdings, quoted in The Guardian, no date.