– MG Rover and Powertrain losing £20-25 million a month
– Majority of workforce sent home on full pay
– Administrator discussions with SAIC possible
– No plans to resume car production; limited Powertrain engine production expected
– Press conference at 10.30am Monday
Further to their appointment as joint administrators to MG Rover Group Limited and Powertrain Limited; Ian Powell, Tony Lomas, Rob Hunt and Steven Pearson, partners in PricewaterhouseCoopers, yesterday [Sunday] secured £6.5 million funding from the government to sustain the business and pay the workforce for a further week.
The joint administrators work has indicated that the companies are incurring very significant losses, estimated at between £20 million and £25 million per month.
Ian Powell, partner PricewaterhouseCoopers said: “Since our appointment on Friday, we have worked with management, unions and the government to assess the situation. We are pleased to have secured this funding which has given us vital breathing space to evaluate the interest of all parties. However, this funding must be viewed in context – it is a small step forward.”
Tony Lomas, partner PricewaterhouseCoopers added: “There is a possibility that our appointment as administrators creates an opportunity to resolve some of the concerns around the previous deal, and we now seek to engage in discussions with SAIC as soon as possible.”
The majority of the workforce has been asked to go home on full pay, however a number of employees have been asked to stay on site to assist the joint administrators. Car production had already ceased prior to the appointment of joint administrators and there are no plans to resume car production, although it is expected that limited engine production will continue at Powertrain.