Administrators PwC has announced this afternoon that 363 people are to be made redundant.
Since PwC’s appointment on April 8 the joint administrators of Powertrain have worked with customers, suppliers and employees to explore whether the production of engines and gearboxes could start up again.
Earlier this week, a meeting of Powertrain suppliers was held in Birmingham at which the prospects for the business were discussed. PwC’s administrators outlined a plan which envisaged up to four months production – but it needed the unanimous support of suppliers.
While the majority of suppliers agreed to PwC's proposals a "small, but significant, number of suppliers" have been unable to agree terms. Following further discussions with the customers, the Society of Motor Manufacturers and Traders, the DTI, the unions and the suppliers, the administrators have concluded today that it will not be viable for production to recommence.
Steven Pearson, joint administrator and PwC partner, said: "Over the last three weeks we have had considerable support from customers, employees, unions, government and the majority of suppliers. It is extremely disappointing that despite everyone’s best efforts, a viable solution for all parties to see production restarted could not be achieved. Despite the announcement of redundancies today our efforts to find a buyer for Powertrain are continuing."
PwC has also announced a further 58 redundancies at MG Rover and MG Sport and Racing Limited.