Workers made redundant after the collapse of MG Rover will soon be covered by a UK government fund to help pay their pensions, according to the Daily Telegraph.
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The paper noted that the news came as speculation rose about the future of the business, which collapsed with debts of £1.4billion – two Chinese car makers, Shanghai Automotive Industry Corporation (SAIC) and Nanjing Auto, are left in the running to buy MG Rover for about £50 million after a bid led by David James, the company doctor, pulled out.
Chris Martin, speaking for the MG Rover pensions trustees, on Monday told the Daily Telegraph that former MG Rover workers would soon be able to enter the government’s Pension Protection Fund, which was set up to help workers whose pensions were threatened when their employers went bust. Members who retired early and are under 65 will have their pensions reduced to 90%. A further 200 former employees who retired over the past five years were told that their pensions had been overpaid and “small adjustments” would have to be made to payouts.
Martin reportedly said: “While there are a couple of hurdles to overcome, we are now confident that we will be in a position formally to confirm entry to an assessment period in the near future.”
Meanwhile, the Daily Telegraph added, the president of SAIC is due to meet MG Rover’s administrator Price Waterhouse Coopers tomorrow. It has already tabled an offer for the company’s Powertrain engines business but no decision has been taken about whether to bid for the rest of MG Rover, the paper said.
In contrast, the report noted, Nanjing is keen to restart manufacturing of MG and Rover cars in the West Midlands but not necessarily at Longbridge.
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