AM Online

Rover boss stresses commitment to deal

MG Rover’s chairman, John Towers has revealed in a statement that SAIC and the struggling British carmaker are still both committed to a proposed alliance.

The statement came after negotiations to secure a £100m bridging loan from the Government stalled due to doubts of MG Rover’s current financial situation.

"I want to underline the continued commitment from ourselves and SAIC for a successful outcome to our joint venture," says John Towers, chairman of MG Rover.

Towers said ‘very extensive personal commitments’ were being made to ensure a successful outcome for the negotiations between MG Rover, the Government and SAIC.

The new deal would mean SAIC would own 70% and MG Rover 30% of the joint venture, newspapers have reported.

The venture would produce one million cars a year in both China and England, with the aim of rejuvenating the Rover model range, giving SAIC a foothold in Europe.

SAIC is understood to be concerned about the possible £400m pension black hole if MG Rover collapsed. The Chinese company is threatening to walk away from a deal unless Tower and MG Rover's other British owners can provide additional guarantees about its financial security.

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