MG Rover dealers reportedly have accepted an offer from Bank of Scotland to set up a £25 million fund to help clear a backlog of 15,000 unsold MG and Rover cars left in limbo following the collapse of the West Midlands car maker last month.
Go deeper with GlobalData
The Daily Telegraph said the deal was hammered out at a meeting between a group of MG Rover dealers and senior executives of Capital Bank, a car financing subsidiary of Bank of Scotland, in Edinburgh on Tuesday.
The paper noted that Capital is the technical owner of the cars but the dealers have a duty to sell them – the collapse of MG Rover meant that dealers were unable to offer the 20% discount that had been covered by the carmaker.
Under the agreement, the Telegraph said, Capital will fund a discount of 15% off the purchase prices of the cars, as well as providing two-year warranties and registration documents for each vehicle, free transport to get the cars to the dealers, and marketing assistance.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
