MG Rover: What happens next?

MG Rover workers are set to receive redundancy notices this weekend, the firm's administrators have said.

This follows confirmation that rescue talks with the Shanghai Automotive Industry Corp had collapsed.

The T&G union has described the move as a "devastating development" and is set to hold talks with administrators PricewaterhouseCoopers (PwC) to see what can be done for the workers.

MG Rover went into administration last week after talks on a tie-up with the Chinese company broke down.

Do you think MG Rover deserves help? Are you affected by the recent events? Send us your experiences and a contact phone number.

This debate is now closed. Thank you for your comments.

Click here for the new MG Rover debate: Is Rover politically damaging?

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The following comments reflect the balance of opinion we have received so far:

Rover went bust because it produces cars that no one wants to buy. There have been no new models in years, presumably because of management incompetence, allowing competitors to get an edge. It's a tragedy, but taxpayers' money shouldn't be used to pay people to make things people won't buy.
Pete, London, UK

Rover has been let down badly for years. Firstly, BMW only bought Rover for the 4x4 technology (Land Rover) moved the R&D to Germany to build their own. Secondly, the infamous four that have lined their pockets. Then the government that have not helped a bit, saying for months "the last chance for Rover" which increased the sales slump and made the Chinese wonder what they were buying into. Then look at the money the Italian government have given to Fiat, the French to Renault and Peugeot./Citroen. Look at the money our government have given to the Japanese every time they want a new model, then look at how much they have given to Rover to help develop new models. Not a penny.
TH, Burton on Trent

Consumers are not patriotic; they buy what is best for them Matthew Stringer, Leeds, UK

This is a sad day for all involved. However given that Rover had not produced a market leading car (or even close) for about 30 years it's no surprise that this has happened, consumers are not patriotic; they buy what is best for them.
Matthew Stringer, Leeds, UK

With out a doubt, the govt should nationalise Rover. We must keep manufacturing jobs and the skills that they require in the UK. Renault is a nationalised business built to a world class company by the foresight of the French govt; ours should make the same commitment. I'd rather see taxpayers' money go to keep British workers in the job and manufacturing skills alive (we can't all be shop workers and call centre employees) rather than spend billions on the Iraq war, govt non jobs etc. Also why did the govt never get their procurement agencies to buy Rover cars for the police force etc. It irritates me when I see police driving around in Volvos and BMWs.
Nigel, Reading, UK

I know that maybe today many Rover workers do not feel like looking to the future but have you seen the story on this website regarding the shortage of skilled car workers in Australia? Maybe some families can find some good out of this and go and enjoy a better life down under?
Ben Clark, Bristol, UK

The Phoenix 4 have done what any sensible businessman would have done - they kept the MGR business going for as long as possible to seek a life-saving link-up with another manufacturer; whilst at the same time ring-fencing those assets that were saveable if that third-party strategy failed. The Longbridge workers have had 5 years' further employment since 2000. The Phoenix 4 put up their own money in the first place to evidence their commitment and to contribute to the finance for the purchase back in 2000. If they have been significantly well rewarded, it is down to their sense of entrepreneurial opportunity as well as their risk taking. I hope that the West Midlands will now move forward into the 21st century - and to profitable businesses with a future without the on-going dependence on outside third party finance.
David, Lichfield, Staffs

I can't understand the lack of realism amongst contributors thus far. Rover has been doomed for years because it has produced a product inferior to the competition. It hasn't made any money for years and the Phoenix Four only prolonged the death throes. Why do people expect any government to use taxpayers' money to prop up a continually loss making company?
Anon, Edinburgh, Scotland

The one saving grace is that according to the government we have an abundance of jobs to fill.
Mark Howard, Norwich

I own a 98 Rover 200 and it's wonderful. I think the problem is that unlike other makes a Rover doesn't breakdown and therefore is not needed to be replaced. It's such a shame.
Sue , Birmingham

The writing has been on the wall for Rover for at least two years Nigel Empeel, Warwickshire

Why are people so surprised. Rover has been a dead duck for years. To be a successful small volume car producer you have to have some special brand cache, Jag has it, so does BMW, SAAB, Mercs, Volvo Rover no way! The writing has been on the wall for Rover for at least two years, people should have started getting out then. Don't prop up failed industry. Besides the UK economy is shifting away from manufacturing to products like software.
Nigel Empeel, Warwickshire

I was born and bred in Longbridge, served my apprenticeship at Longbridge, I left Austin Rover 17 years ago. Britain needs Rover, Britain does not need the press that has hounded and helped destroy Rover/Longbridge over the years. Get Richard Branson or Alan Sugar to run the company, and make it illegal for the press to hound the good honest working people of Longbridge
Ian, Somerset

I don't think MG Rover should get any special assistance. Plenty of companies go under every year, and you don't hear about the government putting together "support packages" for those companies. Hundreds of jobs have been lost in the south west (e.g. Nortel) and I don't seem to remember anyone helping those guys out. If MG don't make any money that's their bad business, and the rest of the country shouldn't be subsidising their wages and "support packages".
CJ, Devon

As an engineer at a company that supplies parts to Rover, it has been obvious for a while that this has been coming. The cars Rover have been producing are still based on 15 - 20 year old models, if they had wanted to survive, cars that were actually new rather than just face lifted needed to be made, it didn't happen and now Rover have gone down the tubes. Not a surprise.
Jono Munday, Cardiff

We deserve better than this sad end Keith Jones, Bromsgrove, Worcs

I've worked for Rover for seventeen years. In those years I've been late twice and lost 5 days sick. We deserve better than this sad end.
Keith Jones, Bromsgrove, Worcs

I too, like 70,000 people a month in the UK am losing my job at the end of June after 32 years. Whilst I am glad Tony Blair is "intervening" and ensuring there is a support package in place for Rover employees, what is he doing for me and the other 70,000 this month and every other month?
M. Taylor, Dagenham, UK

I worked for a Midlands based company that went into administration and closed almost 12 months ago. It was not offered ANY government help at all and neither were its employees or suppliers. Why should Rover get any? The government are throwing money away and, yet again, wasting taxpayers' money in a hope to secure 10,000 votes on May 5th.
Anonymous, Birmingham

What a disgrace! My father has worked for over 15 years and now is left with nothing. All workers should get better redundancy packages. What they have been offered is an insult to them and their families! I have no faith in our current government as well. Not even 21 yet!
Simone Johnson, Birmingham

I live in an area which is also to be faced with the same problems. The government has set up a task force to help workers of Corus Rail in Workington, which is to close in 2006. What other use is there for a plant making rails? The government should start living in the real world! Invest in our country - we have some of the best workers in the world. Although our numbers are significantly smaller than Longbridge we can feel for you all - good luck.
Anon, Workington, Cumbria

The contractors have been forgotten Sharon, Birmingham, England

My husband works for Rudolph and Helmann, who contract to Rover. Unlike Rover workers he has been laid off without pay. Will the government be helping us? The contractors have been forgotten.
Sharon, Birmingham, England

Most of my family have worked at the Longbridge plant over the years or had some connection to business there. All I have ever known is people knocking this company whenever they could because certain people in the automotive press feel that it is the "in thing" to bad mouth MGR and the public just believe what they hear. I have always had to defend this company from stupid comments and remarks and it is usually people who have not even sat in an MG or Rover, let alone considered making their own mind up.
Paul Guest, Bromsgrove

I work at Land Rover in Solihull and we have been stock piling engines supplied by Longbridge for about 8 months now. People at the top must of knew about the problems at Rover ages ago.
Anonymous, Birmingham

The last of the great British owned car manufacturers Vincent Hammersley, Coventry, England

So that's it then is it? The last of the great British owned car manufacturers - gone, just like that. Today I looked out of my window across the fields and the A45 and could see the sun briefly reflecting on the roof of part of the Jaguar Browns Lane plant and knew that they were not building cars there anymore. Apparently, the PR department used to get the occasional request from proud Jag owners from the USA asking if they could have a brick from the factory - they can have it all now but I doubt if they will want it. This evening we will do the weekly shop at Sainsbury's on the site of the Rover Canley plant. They built Triumphs there that are still lovingly cared for and sought after by enthusiasts from all over the world and was the site of Ivy Cottage where the PR department was once located.
Vincent Hammersley, Coventry, England

It's a disgrace that the livelihoods of tens of thousands of families are sacrificed for the sake of the profits of a few. Rather than spend millions to fund redundancy payments the Government should take the company over without paying compensation to the greedy bosses who have already made an obscene killing. I remember vividly when workers in the Upper Clyde Shipyards faced the same threats. They forced a Tory Government to nationalise the company and protected their jobs for a generation by occupying the yards and campaigning across the country.
Danny Williamson, Paisley, Renfrewshire

Yet more skilled manufacturing jobs which will inevitably be replaced by minimum wage burger flipping, and soul crushing call centre jobs. As a country, how much longer can we sustain the loss of skills, loss of key industries either altogether or to foreign companies, and demoralisation of workers? It's not just MG Rover, but thousands of companies like them.
Dan, UK

As an ex-Rover employee I am now very glad indeed that I took the decision to exit that company two years ago and relocate. Things were clearly going wrong from the start. The attitude and actions of the senior management baffled those who still did not realise that they had no long term game plan other than to exit at a profit for themselves and investors on sale or break up. The remnants of the company had no future as car maker from the very start and that is why BMW were prepared to take such a heavy hit to be rid of it. Overall, there is an ugly story to be told and the outcome is not going to be happy for some.
Brian Herren, Guildford, Surrey

We live in a global consumer village Henry, London

Unfortunately we live in a global consumer village where, whether we like it or not, low cost manufacturing will gravitate to low cost countries (e.g. China, Eastern Europe, Mexico) so Rover's demise was inevitable. Similarly low cost clerical work (back office, call centres etc) is gravitating to English speaking emerging nations (e.g. India). The result, over time, will be that the fat cat senior directors of Britain's companies will get ever richer on lower cost workforces, while in the end, there will be no jobs for semi or unskilled British workers in a country which has turned into a service sector only, serving a consumer society, propping up absurd asset values (e.g. property) with insane levels of government and personal debt.
Henry, London

As a car worker myself (Vauxhalls), I can feel for all the workers. We could be next!
Steve, Liverpool

Money must now be invested in re-skilling these employees for a new future Peter Richardson, Hul

As a TU rep in manufacturing and as a Rover customer I have every sympathy with the Rover workers and their families. I have experience of waiting for the axe to fall. I don't see the sense however in the government propping up the company further, the 3 dated body styles are clearly not selling. Whilst the public cry "shame" they still aspire to drive something German or economise and drive something Korean! Money must now be invested in re-skilling these employees for a new future.
Peter Richardson, Hull

I genuinely sympathise with those who have lost their jobs at Rover, but I don't really understand why everyone is putting pressure on the government to intervene. Like many businesses, it was unsuccessful and has come to the end of its life. If the company I work for went under, I wouldn't expect the government to bail it out!
Sam, Birmingham

It is a shame. I was on the demo in 2000 to save it then and our advice was ignored. It should have been nationalised. Also the group that took over then seem to have made huge fortunes since then. Maybe we should be asking them for some money to keep it going. Is there not some question of money going missing into the parent company?
Adrian Cannon, Edinburgh, Scotland

MG Rover was dead the minute John Major's government allowed the BMW takeover Tom, UK

The rump of MG Rover handed over by BMW never had a chance. There was no international market, no small car, no four-by-four, and no capital to develop new models and new engine technologies. MG Rover was dead the minute John Major's government allowed the BMW takeover. The only good thing to come out of this is that the skilled workers remain, and demand for their skills is greater than ever.
Tom, UK

I think a British car industry deserves help. I am affected as much as anyone in this country as I watch Britain going abroad for manufactured goods. Is this not a case for 'disaster relief'? If government is not prepared to re-nationalise then perhaps a direct appeal to people to make a high risk investment in the form of donation; convertible to share status if the investment works?
Leila Johnston, Kelso, Roxburghshire

I think the Phoenix four should be investigated thoroughly. They are currently sitting pretty. The whole thing stinks!
Margaret Willmott, Halesowen

I'm not sure what makes me sadder, the loss of a classic car maker or the loss of humanity in the British public. Who cares if it costs the government money to keep it afloat? They spent BILLIONS of public money on a war the public did not want. Inject cash, rebuild the dream and this time let the workers have a say in what they're making, not corner cutting money saving choices from the management which increases profit in the short term by compromising the product and the long term survival of the company.
Anonymous, London, UK

Loyalty in this firm only goes one way and that's from the workers Alison Billingham, Halesowen, West Midlands

I am a wife of a Longbridge worker of 18 years and my husband works really hard. He has never been out of work and doesn't know where or what to do now. Loyalty in this firm only goes one way and that's from the workers. The "fab four" as people have called them knew what was going on months ago, they should have said something then. I bet they don't lose any sleep, they are nice and comfortable with their big houses and second homes abroad while the workers struggle. What have they got to say for themselves now?
Alison Billingham, Halesowen, West Midlands

My 18month old MG is now warranty-less, but I am proud to say I bought British. I find it hard to believe that the a company of this size has been left to get into such a state, and seriously hope the Phoenix 4 get their come-uppance after they have so clearly asset stripped MG Rover and lined their own pockets.
R, West Yorkshire

Please don't forget the plight of the owners and staff at MG Rover dealerships throughout the country. 10,000 staff work in the dealer network. Many dealers have stayed amazingly loyal to the car maker despite the endless years of troubles and a high proportion are family owned small businesses. These now face imminent insolvency in the face of unpaid debts from Rover for sales bonuses and warranty claims. Also, they will be left to pick up the pieces of selling off stocks of new and pre-registered cars at prices likely to be well below cost.
Alan Morrison, Scotland

Interesting enough, Rover and MG cars have a very good reputation in Austria, and I know a large number of Rover owners from Switzerland, Italy and Germany. They would never buy another car. What really amazes me is the bad reputation Rover has in its home country, I simply do not understand why. I am an Austrian and always bought British cars, and in this respect seem to be more "patriotic" than most British people ... A situation like this would NEVER have happened in Germany or France.
Bernhard Kellerer, Innsbruck, Austria

My husband has worked at Rover for 33 years. Redundancy payments only for 20 years service. All cars leased by workers who have given loyal service for more than 20 years should be given to the workers as a gesture of goodwill to enable workers to travel to interviews for other jobs. Family is devastated.
Mrs Angela Weatherill, Bromsgrove England

Good luck to all the people who have been affected by this disaster Ross Cooksey, Dudley, West Mids

It's sad to see another British tradition disappear. Hopefully the iconic MG brand can be saved and production of MG Sports models can still be produced in some form so the legend can live on. It's a shame as engine and drive wise the cars were as good as anything else around. Good luck to all the people who have been affected by this disaster.
Ross Cooksey, Dudley, West Mids

I was advised by my local mechanic over 8 months ago not to consider buying a Rover as it was difficult to get parts. He had also heard rumours that Rover were cannibalising unsold cars from the production line to fix cars on the road. With such a lack of confidence in the company, it is no surprise that they eventually folded. A sad day.
Neil, Hants

As the son of an employee who has committed 17 years for Rover, it is devastating. The management have milked the company, setting up a huge pension, sharing a fat pay all at the expense of 6000 Rover employees' jobs. PwC should investigate further into the four owner of Phoenix and take action to the furthest extent if they are found guilty of abusing their positions and causing such as a chaos not only in Birmingham, but in the Midlands as a whole.
Anonymous, Birmingham

Our lives will be devastated Lisa, Wolverhampton

I am a Rover wife who went to Downing Street on Wednesday. Our lives will be devastated as there is a chance we will lose everything. We have a one month old son and we were going to be married in October, there will be no chance of that now.
Lisa, Wolverhampton

I am directly affected and feel that instead of the Government proposing to perhaps pay the works until early May, these funds should be utilised now to re-train the employees
Hema Solanki, Birmingham, West Midlands

How many of the people expressing sadness at the demise of MG Rover actually own one? If more of us had put our money where our mouths are, rather than buying foreign owned makes, maybe the company would have stood a better chance of survival. I now find myself the proud owner of a one year old warranty-less MG, but am still pleased that I made the decision to buy British.
Janet Parker, Largs, Scotland

The only hope for MG Rover is for it to be taken over by a globally successful car manufacturer such as happened when VW rescued Skoda.
Steve Howie, Cambridge, UK

Why not let the government buy this company and redevelop it? This has worked quite well for Renault / France. I just cannot believe that you want to let go of your LAST British manufacturer!
Sven Pontow, Detmold, Germany

This failure has been a long time coming to say the least. Although it has been protracted for all stakeholders of the firm, it was reasonably predictable. The car market is cut-throat and if your product just doesn't cut it you will be punished. I feel that for many years the Rover product has just not been quite good enough to survive, to convince buyers to part with their cash. For that all the workers, engineers, directors and all stakeholders are to blame, not just directors. It would be an absolute waste of public funds to provide state aid to such a firm. The original Alchemy plan was a far better proposal and hopefully it may yet be implemented considering MG cars are reasonably successful.
Alex, Tokyo, Japan

There is no hope left of saving this obviously failed company Vic James, London

Well that's it then. Unsurprisingly there is no hope left of saving this obviously failed company. It would be better if any further government funding be used to retrain the workers in service industry work rather than prop up a failed company any longer.
Vic James, London

It's a very bad day, and if any of the Rover workers think they're going to be helped to find a decent job, do not bank on it. I had a 4 year apprenticeship at Rover, and I haven't had a job in 3 years. Prepare for a 40%-50% pay drop, after the job centre finishes with you. We would have been better off closed under BMW, that way I might still have a pension, and could have had money in my pocket. My brother would still have a job, so too my brother in law...just proves I was right. Very bad management.
Liam, Longbridge

The government has let this last bastion of the British car industry fall by the wayside, completing the devastation of British industry begun during the Thatcher era. Frankly, I will not be voting for Labour this time around.
Stuart Williams, Walsall, England

Rover is just leaving early to avoid the rush, the economy of this country is slowly failing under the massive levels of debt run up by this government.
Chris, UK

What happens next? The workers and their families lose everything while the directors walk away with the millions they've asset-stripped from the company. What else?
Allan, Surrey

It is a great pity to see another British industrial name go down the drain. But nearly all of us in this country are to blame as we choose not to buy Rover cars. The media has not help by for ever knocking British Leyland, Austin Rover etc over the years. It's embarrassing for the government, but their hands are tied by the EU and also through the knowledge that there is no point making cars people don't want.
Aidan Jones, Sheffield

Sad that so many have lost their jobs, but now that the writing is on the wall, no more taxpayers' money should be wasted, and MG Rover must be wound up as fast as possible.
James, Birmingham

I think Rover should shut down and then re-open in a year or so, run by someone who is willing to train the employees and produce cars which appeal to more than a minority.
Anonymous

Believe it or not but not all businesses are a success. This private business has failed to produce vehicles of a good quality and is now paying the price. The government should not have to intervene because this is a private company. Such is the world of business.
Stephen, Cardiff

Measures should be taken to protect the diminishing manufacturing base in this country before we turn into a supermarket heaven. Rover is a massive manufacturing base for middle England and although this does not affect me directly it will affect the skill base and worth of these important industries to keep Britain's economy afloat.
Robert Taylor, Bognor Regis

It's a disgrace that the company has got into this position, all possible efforts must be made to ensure its future. Some of the blame can be laid at the door of the British public for not supporting our own manufacturers. How many more retail parks and supermarkets are going to be built on the graves of the British manufacturing industry? This area has already seen the loss of Jaguar's Browns Lane plant and the future of Peugeot at Ryton is not secure. It will be the workers who suffer once again, an investigation of the Phoenix Four and their financial records is a must!
Daniel Legge, Coventry, UK

I think it's about time the Phoenix-4 dipped into their own money to pay for another week's wages for these workers. It's a terribly sad state of affairs, but hopefully the administrators can pull something out of the fire and enable car making, on whatever scale, to continue at Longbridge.
Brace Stevens, Freemanstown

Unfortunately if a private business is mismanaged and doesn't provide a service or goods people want to spend their cash on then this is what will happen. Sad for the workers (and their families) involved but again it needs to be made clear that the only ones to blame are the directors of this company who surely would have known about this some length of time ago and should have tried to do reverse the situation then and not left it to last-minute talks. You cannot blame the British government or people.
Jo, Oxford