Why mg rover went bust

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Tim Rodie All Polls. Alessandro Renesis Electric News. Fun Stuff. Joshua Brock Design Community. All rights reserved including database rights. This electronic file is for the personal use of authorised users based at the subscribing company's office location.

It may not be reproduced, posted on intranets, extranets or the internet, e-mailed, archived or shared electronically either within the purchaser's organisation or externally without express written permission from WARC. Send colleagues a link to this content. To send to more than one recipient, put a comma between email addresses. Rover has had a turbulent life since its inception as a motorbike manufacturer in It thrived in the fifties and sixties and merged with British Leyland in , but by BL was bankrupt.

In , the company was bought by British Aerospace and renamed Rover Group. It was sold to BMW in The Rover 75 went on sale in and things looked on the up…. Sales decline from this point. The Chinese government refuses to ratify it immediately, leading to a long wait. MG Rover is declared bankrupt. The brand is thereafter known only as MG. Skip to Content Skip to Footer. Features Home MG. The Rover 75 went on sale in and things looked on the up… Share this on Twitter Share this on Facebook Email.

The urban two-seater is aimed squarely at the next generation of car users and features smartphone-controlled steering. At the same time, sales figures for the first quarter underlined Rover's poor performance in the showrooms: a 30 per cent slump from Its market share languished at 3 per cent, compared with the 12 per cent 10 years earlier. The mood was apocalyptic. But, still, it was hoped, the Chinese could be sitting tight for further concessions.

Yet by Wednesday evening things were desperate. Hewitt had informed Blair and Brown that there was 'nothing to bridge'. By mid-morning, Hewitt was telling the Commons that the loan was still on the table.

But then, at Because of 'negative media coverage' the company had suffered 'a few isolated component supply problems', MG Rover said. Rumours swept the workforce that the receivers had been appointed and would arrive at any time. By late afternoon, Beale, the finance director, was saying that unless the government came up with the loan to tide them over until a deal was completed, the 'tragic' reality was that the business would go into administration.

They spoke again at 9. Hewitt was keen for Rover to make a statement to 'end the uncertainty'. There was none. But even then, MG Rover's communications director denied the story as Hewitt made her announcement. So why did the Chinese go cold? One expert says: 'Remember, they got Ssangyong, and they got body assembly. Why would they want another assembly operation? What more do they need?

How Rover reached the end of the road.