Talks to save British manufacturer MG Rover were still on track on Monday after the British government agreed to provide R75 million in emergency funding to prevent the immediate lay-off of 6 000 workers at the company’s Longbridge plant.

Talks to save British manufacturer MG Rover were still on track on Monday after the British government agreed to provide R75 million in emergency funding to prevent the immediate lay-off of 6 000 workers at the company’s Longbridge plant.


Staff at MG Rover's plant in central England will today attend a mass meeting addressed by union leaders to hear more about the attempt to rescue the company and lift it out of administration.


The government's provision of emergency funding on Sunday came after a day of talks between British Trade and Industry Secretary Patricia Hewitt, trade unions and the administrators appointed to run the company. The loan to the company will reportedly cover wages and expenses for one week.


CARtoday.com reported on Friday that MG Rover had failed to reach agreement on a rescue deal with China's Shanghai Automotive Industry Corp (SAIC).


The crisis at Rover threatens around 15 000 jobs among its suppliers, in addition to the 6 000 employed at its Longbridge plant in the English Midlands, creating a political headache for the British government ahead of a general election on May 5.


In the meantime, the British government hopes to develop a business proposition for SAIC and other possible purchasers to consider.


Hewitt said the government had agreed to provide emergency funding "in order to avoid the issuing of redundancy notices at MG Rover while efforts are made to keep the business together."


An immediate problem for administrators is to find out which assets have already been sold to SAIC, reported. If it is confirmed that SAIC holds the intellectual property rights to the Rover 25, the 75 and the K series engine, then it already has the technology to build Rover cars in China.


The political fall-out from the crisis at Rover intensified on Sunday when Tory leader Michael Howard said a share of the blame had to be taken by the prime minister and chancellor.


Staff at MG Rover's plant in central England will today attend a mass meeting addressed by union leaders to hear more about the attempt to rescue the company and lift it out of administration.


The government's provision of emergency funding on Sunday came after a day of talks between British Trade and Industry Secretary Patricia Hewitt, trade unions and the administrators appointed to run the company. The loan to the company will reportedly cover wages and expenses for one week.


CARtoday.com reported on Friday that MG Rover had failed to reach agreement on a rescue deal with China's Shanghai Automotive Industry Corp (SAIC).


The crisis at Rover threatens around 15 000 jobs among its suppliers, on top of the 6 000 employed at its Longbridge plant in the English Midlands, creating a political headache for the British government ahead of a general election on May 5.


In the meantime, the British government hopes to develop a business proposition for SAIC and other possible purchasers to consider.


Hewitt said the government had agreed to provide emergency funding "in order to avoid the issuing of redundancy notices at MG Rover while efforts are made to keep the business together."


An immediate problem for administrators is to find out which assets have already been sold to SAIC, reported. If it is confirmed that SAIC holds the intellectual property rights to the Rover 25, the 75 and the K series engine, then it already has the technology to build Rover cars in China.


The political fall-out from the crisis at Rover intensified on Sunday when Tory leader Michael Howard said a share of the blame had to be taken by the prime minister and chancellor.

Original article from Car