[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Tuesday, 12 April, 2005, 10:28 GMT 11:28 UK
More gloom than hope at MG Rover
Jeff Randall
By Jeff Randall
BBC business editor

MG Rover
The winds appear to be blowing against MG Rover

It is pretty gloomy stuff at MG Rover.

When it comes to selling the company as a whole, there is very little left for the administrators to put in the shop window.

Just about all the goodies have gone.

The land has been sold, the car parks business has been sold, the intellectual property rights have gone, the car finance business has gone to the directors of the Phoenix consortium, 500m of cash that was in the company five years ago has been burnt through.

Even the Rover name is not owned by the company, it is leased from BMW.

So if this company is to be sold as a going concern, those administrators are going to have to be pretty slick salesmen.

'Damaged'

If we are talking about a full-scale sale we should never say never.

I'm sure there are some corporate vultures out there hovering over the company willing to pick over its bones.

But it is hard to see a conventional car company coming in at this stage.

Think about the painful experience that BMW had at MG Rover.

It lost billions and ended up leaving behind 500m for the directors of Phoenix to take it away.

BMW's experience will put off many of the world's big car companies.

The administrators themselves gave the game away when they said that, despite the changes of the last five years, the company is still losing 25m a month.

The brand has been damaged.

It is an awful thing to say, but if I was a Rover worker I would not be pinning my hopes on a deal by next Monday, I'd be looking for a new job.




RELATED INTERNET LINKS:
The BBC is not responsible for the content of external internet sites


PRODUCTS AND SERVICES

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East | South Asia
UK | Business | Entertainment | Science/Nature | Technology | Health
Have Your Say | In Pictures | Week at a Glance | Country Profiles | In Depth | Programmes
Americas Africa Europe Middle East South Asia Asia Pacific