Parkinson, who will be replaced on the board by John Sanders, will report directly to group chief executive Kevin Howe. Parkinson's first task will be to clear the MG parts backlog, said to have built up after Cat Logistics took over MG Rover's parts distribution business from Unipart. The manufacturer says supply problems will have eased by July.
By giving its parts business an independent identity, MG Rover hopes to encourage and develop additional “third-party business”. Sources close to the deal told AM that Xpart is already in talks with other car manufacturers.
The manufacturer used similar tactics to grow Powertrain, the MG Rover Holdings company that designs, manufactures and sells K series petrol engines and PG1 transmissions. Now it is building on that independence by appointing Fraser Winton as Powertrain managing director. Winton, who joins from Delphi Automotive, will head up a business that has 1300 employees and a turnover of more than £250m.