AM Online

Virgin loses MG Rover car supply

MG Rover has terminated its supply agreement with Virgin Cars for an alleged breach of contract.

A statement from MG Rover reads: “MG Rover Group has given Motor Solutions Management Ltd (holding company of Virgin Cars) notice of termination for breach of contract, and no new orders will be supplied to the company.”

The manufacturer would not elaborate other than to say the claimed breach occurred in December. “We will not be doing a similar direct supply deal with another company,” a spokesman adds.

Derek Cook, who heads Motor Solutions, declined to comment, telling AM he is currently taking a few days holiday. However the move is expected to be a severe blow to the retailer, which has been supplied cars direct from the British carmaker since September 2002.

The homepage of Virgin Cars’ website highlights its MG Rover link with a rolling graphic of discount prices and a link to a dedicated MGR microsite. Alongside sit the headlines: “UK’s cheapest MG & Rovers. Direct from the factory. All cars in stock.”

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